Kenya and Africa’s latest independent state– South Sudan

[Jacaylbaro]

Kenya is tapping billions of shillings in new investments from what is emerging as an early harvest of the fruits of the looming birth of Africa’s latest independent state — South Sudan.

 

East Africa’s largest economy has emerged as the major beneficiary of the expectation that Southern Sudanese will choose independence in January — sparking a race among foreign governments with the financial muscle to develop infrastructure that the new state will require to trade with the world.

 

South Sudan currently relies heavily on Port Sudan to take its key export, oil, to the global market, raising its exposure to the North in the event of political disagreement between the two after the separation.

 

Analysts at the Brussels-based International Crisis Group (ICG) say the South’s search for an alternative transport corridor to reduce its dependence on the North has opened for Kenya an opportunity to attract billions of dollars in fresh infrastructure investment and an advantage in the scramble for foreign direct investments to East Africa.

 

“As East Africa’s economic powerhouse, Kenya stands to benefit from the emergence of a large new market in South Sudan and major infrastructure that the country will need to engage commercially with the world, including oil exportation,” says ICG in its latest report on the possible impact of Southern independence on neighbouring states.

 

Kenya has already bagged nearly $5 billion in new investment as Asia’s economic giants Japan and China scramble for a share of the infrastructure that South Sudan will need to secure its trade with the world after independence.

 

The projects include construction of an oil refinery and sea port in Lamu, a 1,400 kilometre oil pipeline that will link Juba, Southern Sudanese capital to the Lamu port and construction of a new Mombasa-Kampala standard gauge railway line.

 

Heavy investment is also being made in the 1,130 kilometre road that links Nairobi to Juba to cut the more than 26 hours it currently takes to cover the distance.

 

The combined cost of the projects is estimated at $10 billion (Sh750 billion) or 34 per cent of Kenya’s Sh2.2 trillion gross domestic product (GDP).

 

Southern Sudan remains totally dependent on Port Sudan, in the country’s North, to export oil – its main source of revenue that has attracted heavy Chinese and Japanese interest.

 

Lamu’s deep waters have earned it top marks as the possible location of a new port that the Kenya government has wanted to build since the 1980s with little success in raising the money it needs for it.

 

It now appears that the emerging geopolitical situation is working to Kenya’s advantage offering the potential to upgrade its infrastructure and create thousands of new jobs.

 

Japan and China — keen to protect their investments in Southern Sudan— have signed multi-billion shilling contracts with the Kenya government to help finance the projects, setting the stage for execution of the public works with the potential of transforming the country’s infrastructure.

 

Japan and China have been the most aggressive investors in Southern Sudan pursuing oil and gas they need to drive their economies – which are ranked the world’s second and third largest, respectively.

 

Sudan’s oil deposits are estimated at 6.614 billion barrels with 85 per cent of it located in the South.

 

 

Source:Businessdailyafrica

[Jacaylbaro]

Analysts at the Brussels-based International Crisis Group (ICG) say the South’s search for an alternative transport corridor to reduce its dependence on the North has opened for Kenya an opportunity to attract billions of dollars in fresh infrastructure investment and an advantage in the scramble for foreign direct investments to East Africa.

 

“As East Africa’s economic powerhouse, Kenya stands to benefit from the emergence of a large new market in South Sudan and major infrastructure that the country will need to engage commercially with the world, including oil exportation,” says ICG in its latest report on the possible impact of Southern independence on neighbouring states.

[SeeKer]

And what is your point JB?

 

Be interested to see how you spin this into something controversial :rolleyes:

 

I, for one am happy that southern Sudanese are pro-secessionist. I have met Northern Sudanese who have made my blood boil due to their POV.

 

Ps:- If you are going to do a copy and paste job don't do a hack job of it. Post the entire article or provide a link. The article you just posted is only a 1/3 of the article.

[Jacaylbaro]

Things are changing in the horn of Africa. New borders, new countries emerging and the will be a new balance in the power.

 

This also shows the importance of being strategic to your neighbors. Kenya is supporting South Sudan simply because of the huge income expected in the trade with South Sudan.

 

This is also a great challenge to Egypt who is loosing part of its influence in the horn.

[SeeKer]

^ a lil bit of transparency goes a long way my friend. I take it this shift of power has a somaliland slant?

 

As for supporting an independent South Sudan, I think Kenya is hedging its bets on a mutualistic venture. Southern Sudan, if Bashir keeps his word, should definitely look any gift horse in the mouth be it Kenya, China, Japan or Uganda.

 

We live in a capitalistic world. Everyone wants to make a dollar out of a penny. What Kenya is doing is looking out for numero uno and there is fault in that? If you do find fault in it please show me any country that hasn't signed a deal that didn't cater to their needs first.

[Jacaylbaro]

Somaliland baad ku khafiiftay ,,,

 

 

I'm talking about South Sudan here adeer ..... and it a great shift of power, change of borders and one more country to be added to IGAD .....

 

The second part is about the interest and how it is influential when it comes to politics. You just need to put yourself in a position that others have a great interest in you to make your political agenda succeed.

[SeeKer]

No I just call a spade a spade hon. I have been on this board long enough to know where certain allegiances lie, even though I don't comment I take the time to read the posts. All I did was ask you to be transparent about your angle..... You say its not there, its not there mmmkay :rolleyes:

 

As for new countries being added to the IGAD.......what exactly has the IGAD accomplished since its inception?

 

Power in political circles is only in the hands of the one who has the most leverage and understands how to use it. Recognition due to interest isn't enough to make or break a nation. If South Sudan is to make its mark as a stable entity it needs to recognize that it has the leverage here and negotiate the terms accordingly, but knowing Africans they will be bleed dry. I hope they don't fall in those trappings

 

Ps:- please don't call me adeer. I have a disdain for adeers as a whole sub-category. Much appreciated

[Jacaylbaro]

I'm just saying Adeer coz waan kaa waynahay ,, that is all.

 

 

I'm not evaluating IGAD here but i'm just focusing on the balance that the South Sudan will bring to the group when it comes to the voting and decition making.

 

The negotiation and putting the leverage in place comes after being recognized and have access to funding, economy and the international sources. First things first, that is why interest is so important in making up yourself then move from there. China made itself important yet continue to stand an economic and military threat to the west. Yet, it is a strategic country to be count on.

 

Africa is always different and I trust those South Sudanese leaders will be different and have their own plans to be different from the others.

[SeeKer]

^And you know how old I am how?

 

Don't go around in circles JB, the question still remains......what has IGAD accomplished since its inception.......in other words whats another a$$ to warm a seat going to do in an organization that doesn't do much? :confused:

 

I am liking how you are moving this discussion in terms of strategic jockeying of countries. It puts me in mind of an article I read at the beginning of the year about states that are in limbo. Countries that have declared statehood in some form or another but are not recognized. Its a bit long but gives you an idea of the political terrain secessionist reside in. I hope you read it in its entirety

 

Ps:- Could you explain what interests Kosovo presented to be recognized by other countries? You know, just to illustrate your theorem

[Jacaylbaro]

Man, looks like you have a beef with IGAD ,,,, My point is not if they are useless or not ,, IGAD is an existing regional body and to be honest they make decisions, political or and economy. How it is handled and who has the power is another story of its own.

 

Regional integration is everywhere ,,,, and to accomplish anything is not the subject here unless u want to knock that door now.

 

AMISOM is there coz of the IGAD recommendation along with AU ...... just an example.

[SeeKer]

Lol......Rewind dude. You are the one who brought up IGAD to back up your point. Now all of a sudden I have beef with them because I questioned their relevance in the discussion :eek: hence why I don't comment on politics on these boards.

 

When you make a claim be ready to irrefutably support it with concrete points not flimsy abject assertions.

[Jacaylbaro]

Isku mowjadba kama hadlayno ,,,,

 

 

I told you from the beginning that i'm not questioning IGAD's achievements but rather addressing them as an existing regional body.

 

Halkaa ha kuugu joogto intaad fahmayso ,,,

[SeeKer]

I concur, we exist on different universes. Yours has a red sky

[Jacaylbaro]

and yours has a yellow one ,,,

[SeeKer]

lol no mine is actually purple.... yellow=coward