Almost complete Kenya-ACOP road corridor boosts trade
My take, noting that the current trade between Kenya and Tanzania is US$380 million, the projected trade of US$175 million between Kenya and Ethiopia by the time the corridor is completed is more than half the trade between Kenya and Tanzania, despite us having been trading since before colonialism. US$175 million to me is a great start and it can only get better and and faster.Almost complete Kenya-ACOP road corridor boosts trade
Tuesday, 14 August 2018 06:07
Kenya and Ethiopia have initiated 895km highway corridor linking Nairobi and Addis Ababa, a move that aims to ease cross-border traffic between the two countries and give a major push for economic integration within Africa
With the road corridor, trade between Kenya and Ethiopia is expected to jump from US$35mn to US$175mn by the end of 2019. (Image source: flowcomm/Flickr)
The project has been financed by the African Development Bank (AfDB) Group under its High 5 priorities. The bank financed about US$ 670mn, amounting to 64 per cent of total project costs.
The corridor consists of a 504km road linking the Kenyan towns of Merille and Turbi, through Marsabit, and an additional 391km stretch running through Ethiopia linking Ageremariam, Yabelo and Mega.
While the Kenyan section of the corridor was completed in 2016, the last part of the road in Ethiopia will be finished during the first half of 2019. Yet already trade and employment opportunities between the two countries have increased.
According to AfDB, the road has also had a beneficial effect on public services like customs and inspections, as the new road has boosted cross-border traffic of goods. At the border, customs officials attested to this.
“The products that we export from Kenya via the port of Mombasa to Ethiopia are essentially sugar, oil and rice. In 2014, we earned more than US$16mn per year, but earnings have risen to US$70mn now,” said Paul Nyaga, a senior officer of the Kenyan customs service. He said the increased traffic had generated significant revenue for his country.
Even on the Ethiopian side, where the last part of the corridor is still unfinished, cross-border traffic has doubled.
“There used to be 30 or 40 vehicles at most travelling along our motorway a day. Now, there are more than 100 per day,” said Tesfaya Antenyismu, a senior official for the Ethiopian South region Directorate, adding that he hoped to see the numbers raise even higher.
According to AfDB, trade between Kenya and Ethiopia is set to increase fivefold, from US$35mn to US$175mn by the time the corridor construction project is completed. The intensity of foreign investment in the region in the period from 2016 to 2018 should further improve this performance. This is due to reductions in transport and shipping costs of goods and the expansion of markets beyond national borders.
Almost complete Kenya-ACOP road corridor boosts trade
MY TAKE
100 vehicles per day is laughable just like trade of $35mln per year.
Magufuli is whipping u people! BTW who wants to trade with Kenya?
Hapana, tushikilie tu kwote. Already Kenya is the fourth biggest investor in Tz. We already have our investment footprints in Uganda, Rwanda, Zambia, Malawi and to smaller extent Burundi and DR Congo. Iliobaki ni kuteka soko za Ethiopia, SSudan, Somalia, Djibouti and God willing, Eritrea......mpaka huko west Africa....
Magufuli is only whipping the Tanzanian opposition back to ccm in droves. By the way from the smallest to the mightiest are willing to trade with Kenya. We just started flying to Mauritius recently and US is following suit very soon.
Mbona hueleweki?, usichanganye kuwekeza katika nchi ya nje na kuwa na soko katika nchi hiyo. Kenya inawaekeza Tanzania na hilo sisi tunalifurahia kwasababu linajenga nchi yetu, tatizo tunalokataa ni bidhaa zinazozalishwa Kenya kuja kuuzwa Tanzania, hilo hatutaki nendeni mkauze Ethiopia na Uganda na South Sudan.
reality from our LDC Kenya calling itself middle income ina vituko na barabara haijakamilika mpaka 2019 that means the trade for these 2 with population 150 mln (Kenya 50mln while Ethiopia 100mln) is laughable $35 mln per year. Only 30 vehicles crosses the border everyday.
no one cares about a stupid humans take on any thing...Almost complete Kenya-ACOP road corridor boosts trade
Tuesday, 14 August 2018 06:07
Kenya and Ethiopia have initiated 895km highway corridor linking Nairobi and Addis Ababa, a move that aims to ease cross-border traffic between the two countries and give a major push for economic integration within Africa
With the road corridor, trade between Kenya and Ethiopia is expected to jump from US$35mn to US$175mn by the end of 2019. (Image source: flowcomm/Flickr)
The project has been financed by the African Development Bank (AfDB) Group under its High 5 priorities. The bank financed about US$ 670mn, amounting to 64 per cent of total project costs.
The corridor consists of a 504km road linking the Kenyan towns of Merille and Turbi, through Marsabit, and an additional 391km stretch running through Ethiopia linking Ageremariam, Yabelo and Mega.
While the Kenyan section of the corridor was completed in 2016, the last part of the road in Ethiopia will be finished during the first half of 2019. Yet already trade and employment opportunities between the two countries have increased.
According to AfDB, the road has also had a beneficial effect on public services like customs and inspections, as the new road has boosted cross-border traffic of goods. At the border, customs officials attested to this.
“The products that we export from Kenya via the port of Mombasa to Ethiopia are essentially sugar, oil and rice. In 2014, we earned more than US$16mn per year, but earnings have risen to US$70mn now,” said Paul Nyaga, a senior officer of the Kenyan customs service. He said the increased traffic had generated significant revenue for his country.
Even on the Ethiopian side, where the last part of the corridor is still unfinished, cross-border traffic has doubled.
“There used to be 30 or 40 vehicles at most travelling along our motorway a day. Now, there are more than 100 per day,” said Tesfaya Antenyismu, a senior official for the Ethiopian South region Directorate, adding that he hoped to see the numbers raise even higher.
According to AfDB, trade between Kenya and Ethiopia is set to increase fivefold, from US$35mn to US$175mn by the time the corridor construction project is completed. The intensity of foreign investment in the region in the period from 2016 to 2018 should further improve this performance. This is due to reductions in transport and shipping costs of goods and the expansion of markets beyond national borders.
Almost complete Kenya-ACOP road corridor boosts trade
MY TAKE
100 vehicles per day is laughable just like trade of $35mln per year.
Hivi wamejiuliza juu ya uwezo Wa hao waethipia Wa kusini kama wanaweza nunua bidhaa, may be 20 yrs baadae
