Ethiopia sinks $700m in push to expand investments in LAPSSET Corridor

With Africa set to handle well over 1.3 billion tonnes in cargo business by 2040, investments in port capacity are increasing across the continent. A recent visit of the Ethiopian minister's delegation to Kenya shed light on Ethiopia's interest in enhancing the implementation of the LAPSSET Corridor on the Ethiopian side. Ethiopia has been actively working on its section of the corridor, including the construction of a connecting road between Moyale and Hawassa city, a motorway to link Hawassa with Addis Ababa, and other infrastructure developments. The discussions between the two countries focused on Kenya's progress in constructing the LAMU port and off-take infrastructure. The Ethiopian delegation expressed interest in utilizing the port, showcasing the advancements made by Kenya in this regard. The signing of an MOU for a fibre-optic backbone connection between Kenya and South Sudan also highlights the push for stronger integration within the region. This infrastructure, essential for communication and e-commerce, will facilitate transactions and enhance connectivity. The road developments towards Ethiopia and South Sudan, supported by various international organizations, are expected to further boost trade and economic growth in the region. The ongoing progress in the LAPSSET Corridor aligns with the larger vision of the African Union for infrastructure development and integration. The efficiency levels at ports like Djibouti and Dar es Salaam pose stiff competition for the upcoming Lamu port in Kenya. However, with the projected increase in business and trade volumes, Lamu port is positioned to carve out its niche and contribute to the growth of the eastern seaboard. The unique offerings of Lamu port, coupled with the region's expanding industries and investments, are expected to drive the port's success and support the development of the northern part of Kenya. As Africa's logistics sector continues to grow, Lamu port's entry into the market is seen as a positive step towards strengthening regional trade and enhancing international maritime connections. The port is poised to become a key player in the evolving business landscape of eastern and central Africa, complementing existing ports and stimulating further economic growth.