Kenya is stepping up plans to open a new trade corridor to post-war Somalia, braving the dark clouds hanging over the stability of the neighbouring state from remnants of Al-Shabaab militia.

Buoyed by the prospects of a gradual return to normalcy after the recent capture of Kismayu, Kenyan investors are readying themselves for opportunities that abound in the reconstruction of Somalia.

Two decades of war have severely hit key segments of Somalia’s economy, lowering the country’s ability to produce goods and services for domestic consumption.

Kenyan investors see recent successes of the military operation as significant events that will radically change the investment climate, enabling them to go into mass production for export to post-war Somalia.

 “A liberated Somalia means the end to counterfeits and goods smuggled via the Hulugo border point and reduced inflow of small arms from Kismayu that have been linked to carjackings and general insecurity faced by the local business community,” said Polycarp Igathe, chairman of the Kenya Private Sector Alliance.

Kenyan investors believe that the end of active combat in Somalia could usher in a friendly regime that would promote cross-border trade.

Such a regime will most likely seal the remaining smuggling routes, eradicate piracy and facilitate free exchange of goods, services and investment capital.

 

 

Source: http://www.africareview.com