Transport

Kenya in terrorism fight plan to boost its blue economy

iora

A ship docked at the port of Mombasa. The maritime industry has the potential to earn the country Sh451 billion annually provided that proper policies and incentives are put in place. PHOTO | LABAN WALLOGA | NMG

Kenya will fight terrorism and other forms of extremism within its jurisdiction in a broad plan aimed at ensuring growth of its maritime industry, commonly referred to as the blue economy.

Last week, the Indian Ocean Rim Association (IORA), a lobby for 21 states, including Kenya, bordering the sea adopted the first action plan, which sets out the association’s short, medium and long-term flagship initiatives for 2017-2021.

Ministers also adopted the “IORA Declaration on Preventing and Countering Terrorism and Violent Extremism” which they hope will galvanise them to create a secure, prosperous and connected Indian Ocean region by addressing the scourge of terrorism and extremism.

This is particularly key if the association is to ensure security by suppressing terrorism at a time when the international community is scaling back patrols by naval ships on the vast ocean after years of relative calm.

At the height of terrorism attacks off the Horn of Africa between 2009-2010, the global shipping industry was haemorrhaging billions of dollars in piracy and insurance costs.

During the Jakarta meeting the IORA also resolved to deepen business associations between the member states. About 300 businessmen and businesswomen attended the event.

Total trade among the IORA nations reached $777 billion (Sh79.7 trillion) in 2015, up 300 per cent from the 1994 figure.

The Indian Ocean rim, which has a 2.7 billion population in total (around 35 per cent of the world population), already sees 70 per cent of world trade go through the area and hence forms a key trade route, especially for the distribution of oil and gas.

However, currently the region only controls 10 per cent of world gross domestic product (GDP) and 13 per cent of global foreign direct investment (FDI), hence there should be ample room for further growth.

Experts agree that Kenya’s territorial waters covering 230,000 square kilometres and a distance of 200 nautical miles offshore, provides the local maritime sector with huge potential.

Official figures show estimated annual economic value of goods and services in the marine and coastal ecosystem in blue economy in western Indian Ocean today as slightly over $22 billion (Sh2.2 trillion) with Kenya’s share slightly over $4.4 billion (Sh451 billion). However this is not exploited.

A national maritime conference held at the Kenyatta International Conference Centre (KICC) last year resolved that if the country enacts an integrated national maritime policy to address all the challenges that affect its growth, the sector can turn around the country’s economy.

Kenya is already implementing fresh measures and policies to tap the economic potential. Communities around Lakes such as Victoria, Naivasha and Turkana are hopeful that the blue economy oversight team will prioritise seeking solution to environmental issues currently afflicting the water sources.

One of the ideas being fronted for Kenya to optimise gains is by developing a special economic zone or fish processing zone.

In line with this, President Uhuru Kenyatta recently urged Coastal counties to expand fishing in the ocean, saying it has the potential to create many jobs for the youth.

The president said the counties should work closely with the national government to help fishermen get bigger boats and other fishing equipment that will enable them to fully exploit the marine resources.

He noted that with the current fish production of about 9,000 metric tonnes, the sector directly employs 14,000 fishermen from the coastal communities.

Another area that provides investment opportunities to exploit the blue economy is sea transport. Calls have been made for the restructuring of the national shipping line and promotion of shipping and ship registration in Kenya.

Missed revenue

With over 25 metric tonnes of cargo coming into the country as imports, Kenya does not own a single commercial ship.

This even as, neighbouring nations like Ethiopia, boast of over a dozen commercial ships earning the country $40 million (Sh4.1 billion) annually according to official estimates.

According to Nancy Karigithu, the Permanent Secretary in charge of Shipping and Maritime Affairs, Kenya is missing out on about Sh90 billion annually due to failure to come up with good policies that strengthen the sector.

“I am sure that the maritime sector has the potential to generate hundreds of thousands of jobs within its 15 sub-sectors and 87 areas of activity,” Ms Karigithu said last September. The Indian Ocean is the third largest of the world’s five oceans.

During the Summit, Indonesia and Kenya, announced plans to devise new ways of promoting mutual trade in strategic industries, according to a statement from the Indonesia Ministry of Foreign Affairs.

It said Kenya also plans to establish an embassy in Jakarta in the coming months to replace its current honorary consulate in the capital.

Total trade between the two countries amounted to $210 million (Sh21.5 billion) last year.

Other IORA members include South Africa, Australia, Bangladesh, the Comoros, India, Indonesia, Iran, Madagascar, Malaysia, Mauritius, Mozambique, Oman, United Arab Emirates, Seychelles, Singapore, Somalia, Sri Lanka, Tanzania, Thailand and Yemen.

The association provides an annual forum to discuss bilateral relations between member states, with a special focus on maritime relations.
The Indian Ocean provides major sea routes connecting the Middle East, Africa, and East Asia with Europe and the Americas.
Its fish are of great and growing importance to the bordering countries for domestic consumption and export. Fishing fleets from Russia, Japan, South Korea, and Taiwan also exploit the Indian Ocean, mainly for shrimp and tuna.

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