DP World announced it will expand investments in East Africa through an agreement it signed with Kenya-based investment bank GulfCap Africa, which will see the development of the Mombasa Industrial Park.
The two companies signed an agreement on Wednesday, which builds on the partnership announced in August.
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Mombasa Industrial Park, a 222-hectare Special Economic Zone (SEZ), will serve as a gateway for foreign direct investment as it will expand local manufacturing capacity and strengthen connections between Kenyan businesses and regional and international markets.
The first phase of the project will cover 40 hectares, the Dubai Media Office said. More than 60 local and international companies have already expressed interest in setting up in MIP, while the development is expected to support more than 20,000 direct and indirect jobs upon completion.
Advancing investment opportunities in Africa’s east coast
According to the official investment promotion agency of Mombasa, Kenya’s Coastal Region is crucial for East African economic growth, with its economic strength centred around the Port of Mombasa and its surrounding counties’ potential in agriculture, fisheries, and tourism.
However, despite its rich natural resources and global connectivity, Kenya’s coastal economy is not generating enough investment or economic opportunities for its citizens. The private sector struggles to absorb new labour market entrants, leading to high unemployment and poverty rates, the agency said.
The SEZ is expected to create opportunities for Kenyan suppliers and service providers, including small and medium-sized enterprises (SMEs) and support their integration of Kenyan companies into regional and global supply chains.
Businesses operating within the park will be positioned to benefit Kenya’s access to key markets through the African Continental Free Trade Area (AfCFTA), its Economic Partnership Agreement with the European Union, and the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, DMO said.
Essa Kazim, Group Chairman of DP World, said that the east African country is a crucial market for the logistics company. “Our investment in the Mombasa Industrial Park is about creating the infrastructure that enables trade, attracts new industries and connects Kenyan businesses more efficiently with markets across Africa and the world,” he said, adding that the opportunity is to create a platform for investment, manufacturing and trade that can generate lasting economic value for Kenya and the wider region.
Source: Khaleej Times