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Time for an economic think tank for Coast

All we need is forward-looking, disciplined and incorruptible leadership.

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by GEORGE SUNGUH

News22 September 2019 - 20:46
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In Summary


• Many cities or countries around the world have emerged from ruins to economic powerhouses.

A friend recently gave me an early morning call, seeking my advice on how to go about advertising her rental apartments which were fast remaining vacant as the tenants sought livelihood elsewhere.

The loss of jobs in Mombasa and its environs has been confirmed by a recent study by the University of Nairobi, which revealed that Mombasa’s economy is bound to shrink by up to 16.1 percent with job losses estimated at over 8,000 if all cargo from and to the Mombasa port is railed by the standard gauge rail.

Instead of lamenting the losses, real or perceived, this is the best time to establish an economic think tank for the Coast devoid of political affiliation to chart the course for a new Mombasa and the region as a whole. It is quite unlikely that the government will reverse its decision since it equally badly needs the revenue to service the debt incurred in constructing the SGR.

 

Many cities or countries around the world have emerged from ruins to economic powerhouses after strategically overcoming daunting challenges placed before them by circumstances such as the one facing Mombasa today courtesy of the SGR factor.

Just like eagles revel in storms, so should Mombasa and the other Coast counties come up with a blueprint that will soar above the current storm. History is replete with countries or cities whose economies at one time hit rock bottom but sprung back courtesy of their leadership’s resilience and forthrightness.


That’s how Japan emerged from World War II to become the first non-Western great power. Closer home Rwanda rose from the 1994 genocide to become an economic powerhouse in Eastern Africa.

All we need is forward-looking, disciplined and incorruptible leadership that will whip the current populace into harnessing the resources within the region. The Coast Economic Task Force should work closely with the Presidential Blue Economy Task Force founded in 2017 to fast track the harnessing of ocean resources for economic growth, livelihoods and jobs.

The once moribund seafaring industry is today looking up with hope after the government sealed a deal with the Geneva-based Mediterranean Shipping Company (MSC) to recruit youth to work onboard its cargo fleet and cruise ships.

With this initiative, Kenya may soon be breathing heavily on the necks of China, the Philippines, Indonesia, and Russia which are estimated to be the largest supply countries for seafarers earning colossal income from remittances to the exchequer.


The recent handing over of the Wasini Fishing Port to Kwale county to manage will certainly boost the region’s economy. A Chinese company – Huawei – is already putting up a fish processing plant in the county to employ some 700 workers when fully operational.

 

The African Union has come up with an agenda promoting Blue Economy and there is no Kenyan county best placed to enjoy the benefits of the new economic pillar than the four coastal counties—Mombasa, Kwale, Kilifi and Lamu. Countries such as South Africa and Mauritius have greatly exploited the wealth beyond their coastline earning billions of US dollars each year to the exchequer.

This brings me to the next line of thought. There were years when the Port of Mombasa would register more than 40 cruising calls per year, with thousands of tourists embarking and disembarking, boosting the tourism industry.

Today the port would be very lucky to receive five cruise ships in a year.

The good news is that an ultra-modern cruise terminal is currently being constructed in Mombasa with the aim of attracting cruise vessels. It is expected to open in 2020. Sources from the industry say the tourism sub-sector has seen exponential growth in recent years, with cruise bookings now exceeding 1,000 guests from the initial 20 or so a year.

The think tank must come up with recommendations on how best the local populace can benefit from mineral resources with which the region is endowed. Kwale alone boasts of 65 percent of minerals produced in Kenya, thus providing substantial revenue in tax and royalty payments.

Mombasa-based independent journalist and media consultant on regional maritime and infrastructure issues

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