Continental bank eyes business in county government

Kisumu Thursday, June 8, 2023

KNA By Chris Mahandara 

The Africa Export and Import (AFREXIM) Bank has rolled out programmes targeting county governments as it moves to gain a foothold in the country.

Through the initiative, the bank has developed several products through which county governments and the private sector can tap in to roll out development projects.

Afrexim Managing Director In charge of InterAfrica trade Dr Gainmore Zenawe said the initiative spearheaded by the United Cities and Local Government Authorities (UCLGA) targets to accelerate development across the counties.

The bank, he said, has introduced programmes to support agriculture, industrialisation, manufacturing, maritime sector, engineering and construction, sports, music, arts and climate change.

Zenawe said the initiative targets to avail funds for projects in the identified areas for county governments and the private sector in the devolved units to fastrack development.

The bank through ULCGA, he said, has embarked on helping the county governments to identify bankable projects to be funded by the bank.

“Resources are key in running county and sub-national governments. However, coming up with bankable projects remains a big challenge. What we are doing is to help county governments and the private sector to identify these projects so that they can access funds to underwrite development,” he said.

Speaking in Kisumu during a presentation to governors from the Lake Region Economic Bloc, Zenawe said to unlock the funds, project identification and preparation was paramount urging the county government to take que and focus on areas that are viable.

For the projects to be funded, he added the county governments and contractors will have to identify a sponsor and upon verification the bank will release funds.

“We want to work with you to identify projects that require financing and have a clear sponsor and then we will walk you through the steps to secure funding,” he said.

The lake region, he added, can take advantage of the bank’s programmes in the maritime sector which targets to utilise inland water bodies to promote intra-africa trade.

Through the sector, the bank he said targets to support investors to open up maritime trade which is the next frontier in attracting direct foreign investment in Africa.

On Engineering and construction, he said the bank has set aside funds to support local contractors to take up capital projects.

This, he added targets to empower local contractors to undertake projects within the counties and across the continent, an area that has remained a preserve of multinational companies.

“We have so many projects in Kenya and across Africa being done by Chinese contractors because of the financial support they receive from their country. This program targets to avail funds for our local contractors to bid for the same jobs,” he said.

UCLGA Secretary General Jean Pierre Elong Mbassi lauded the partnership with Afrexim bank saying the move will ensure development in local governments continue uninterrupted despite exchequer delays from national governments.

Kenya, he said has made great strides in entrenching devolution with the 47 county governments part of the over 16, 000 sub-national governments to benefit from the initiative across the country.

“Every development is local. If you want to grow you start locally. Devolution therefore is the only way we can get African people empowered to master their lives,” he said.

Resources, he added remained the biggest challenge affecting development in local governments across the continent urging governors present to take advantage of the opportunity presented by Afrexim bank to foster development.

UCLGA, he disclosed, has established the Africa Trade and Investment Agency to coordinate the initiative and at the same time help realize the Africa Continental Free Area.

The forum was attended by Kisumu Governor Prof. Anyang Nyong’o who is also the LREB Chairman, Siaya Governor James Orengo, Migori Governor Dr Achilo Ayacko, Bomet Deputy Governor David Rotich and Nyamira Deputy Governor James Gesami.

Nyong’o said interruptions in exchequer remittances posed the biggest challenge in the implementation of development projects in counties.

Access to funds through the Afrexim bank and the private sector, he said would come in handy to bridge the gap and ensure that development in the devolved units takes shape.

Siaya Governor James Orengo said the constitutional provisions on how county governments can borrow was the reason most of the devolved units have not pursued the avenue.

However his Migori counterpart Dr Ayacko said the county government can take advantage of the private sector which has been given the leeway by the bank to present their development projects directly.

“We can identify projects that can be funded by the private sector and present them to the bank through UCLGA to get funds,” he said.

Afrexim Bank was established in Abuja, Nigeria in 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors to promote and expand intra-African and extra-African trade.

It is headquartered in Cairo, Egypt with branch offices in Harare, Abuja, Abidjan and Kampala.

Courtesy ; K. N. A