Presentation on theme: "Running on one Engine Kenya’s uneven economic performance with a special focus on the port of Mombasa World Bank Economic Team Presentation by Dr. Wolfgang."— Presentation transcript:
Running on one Engine Kenya’s uneven economic performance with a special focus on the port of Mombasa World Bank Economic Team Presentation by Dr. Wolfgang Fengler Press Briefing Norfolk Hotel Nairobi, June 3, 2010
Main messages Kenya is recovering - slowly but surely. For 2010, the World Bank is revising its growth forecast upwards to 4.0 percent. For 2011, we project 4.9 percent, if no shocks occur. However, Kenya is running on one engine. Over the last decade growth has been imbalanced, predominantly driven by domestic consumption fuelled by imports. Exports have been weak and non-tradable sectors, such as services and construction have performed strongly. The Infrastructure deficit constrains exports and the port of Mombasa is still under-performing. Despite some improvements, port reforms have not kept up with the momentum in other African countries. It still takes 20 days to bring a container from Mombasa to Nairobi. This is longer than to ship the same container from Singapore to Mombasa.
Recent Economic Developments and Outlook for 2010
Kenya’s economy is recovering – slowly but surely…
Singapore ships 50 times more goods than Mombasa
94 percent of Mombasa goods go to Kenya and Uganda
At the port, dwell time has been reduced, however,...
.. it still takes 20 days to bring a container from Mombasa to Nairobi 3.7 days 18.3 days
… and Kenya is lagging behind in the implementation of reforms
Key reform issues Easy wins – Improve management. The Mombasa port can be substantially upgraded, even with the current infrastructure, including through (i) full and effective 24hr port operations; (ii) the implementation of a state of the art IT system (Port Community-Based System); (iii) the concessioning of berths 11-14 through a competitive and transparent process; (iv) the establishment of a landlord port. Infrastructure upgrading – Focus on transport connections. Transfer of goods through Mombasa and other parts of Kenya has become a major hindrance to the economy. Key improvements include the (i) Mombasa by-pass along with the link road from the port; (ii) upgrading of rail capacity; (iii) building of new container terminal by 2015
Thank You http://www.worldbank.org/ke For more information on this report and the World Bank’s Economic program in Kenya, please contact Wolfgang Fengler (email@example.com), Jane Kiringai (firstname.lastname@example.org) or Andrew Roberts (email@example.com)firstname.lastname@example.org