The Guangdong New South Group Ltd has signed a $1.94b deal with the Kenyan government for the construction of an industrial park in Kenya at the Eldoret Special Economic Zone.
The China- based company signed the deal for the industrial park in Kenya titled Africa Economic Zones in Beijing in the presence of President Uhuru Kenyatta in a private sector agreement. The project is being put up through a partnership between the Chinese firm and Africa’s Economic Zones Ltd.
Africa Economic Zone (AEZ) is the first privately owned special economic Zone in Kenya and has been licensed in accordance with Special Economic Zones Act 2015.
The agreement encompasses the development and operation of a high-end Special Economic Zone, with world-class infrastructure in Eldoret, Uasin Gishu County. The advantage of the location comes in when the easy access to raw agricultural materials is put into consideration, as well as the development of massive land away from the over-populated cities.
President Uhuru Kenyatta lauded the two corporate for their achievements to date expressing his optimism that the project will have a big economic impact on both the local and national economy.
The gradual incorporation of Special Economic zones by many countries is in a bid to sput development. These are projected to serve as some of the vehicles that will carry forward their industrialization agenda.
It is also a means of attracting Foreign Direct Investments (FDIs) mostly in the manufacturing sector, job creation, and export growth.
Accordingly, these countries are mostly looking to China, which has proven over the last three decades that industrialization can create jobs and substantially reduce poverty; this particular one to the tune of over 40,000 in direct jobs for the youths and a further 150,000 inirect opportunities.
Improved infrastructure, resurgence of various economic activities around Eldoret, positioning it as an industrial and manufacturing hub is also expected from the investment deal.
The Economic Zone will be designed and planned in such a way that it will be able to support a growing community in terms of institutional framework, physical infrastructure and administrative services to ensure a complete smooth operation for the support of various economic activities within the Industrial park.
Once fully operational, production output is expected to reach $3 billion annually and grow exponentially.
The ground-breaking ceremony is scheduled for July 2017 with construction work expected to start shortly after.