McDan Group Ghana signs billion dollar infrastructure deal with Kenya

Ghana's McDan Group is making significant strides in the realm of intra-African trade by positioning itself as a prominent player in facilitating the seamless movement of goods across the continent. Under the African Continental Free Trade Area (AfCFTA) Agreement framework, McDan Group is strategically investing in port infrastructure and logistics, particularly in Kenya, to bridge trade gaps and overcome existing barriers between West Africa and East Africa, notably between Ghana and Kenya. CNBC Africa recently sat down with Dr. Daniel Mckorley, the CEO & Chairman of McDan Group, to discuss the Memorandum of Understanding (MoU) signed between Ghana and Kenya. The MoU aims at fostering robust business relationships between the two countries, eliminating barriers to trade, and encouraging smooth movement of goods and services. Dr. Mckorley highlighted the significance of the agreement, emphasizing that it is a pivotal step towards enhancing trade between Ghana and Kenya. The MoU is projected to generate an annual turnover of around one billion dollars, indicating the vast scope of opportunities presented by this strategic partnership. Dr. Mckorley also shed light on the extensive support services encompassed within the MoU, underscoring its bilateral nature. Moreover, the infrastructure and logistics investments underpinning this collaboration are set to revolutionize intra-African trade by bolstering connectivity and efficiency. McDan Group's robust infrastructure, including warehouses, cargo planes, and the resurrection of the African shipping line, the Black Star Line, demonstrates a commitment to spearheading trade facilitation across the continent. Dr. Mckorley affirmed that these investments are pivotal in bridging the trade gap between Ghana and Kenya, with a keen focus on addressing existing challenges. The interview delved into the strategic approach adopted by McDan Group in managing competition from foreign entities in the Kenyan market. Dr. Mckorley stressed the importance of fostering African ownership within operations, highlighting the transformative power of intra-African trade in breaking down barriers and empowering local businesses. He acknowledged the formidable challenges posed by foreign infiltration but expressed optimism about the concerted effort required to mitigate these obstacles. The interview also explored the role of public-private partnerships and government collaboration in driving the success of initiatives such as the Black Star Line and the construction of a new port infrastructure. Dr. Mckorley commended the support received from the Ghanaian government, citing favorable policies and a conducive regulatory environment that propels private sector growth and fosters economic development. Furthermore, the alignment of policies between Ghana and Kenya was underscored as a crucial element in ensuring the seamless implementation of the MoU. Dr. Mckorley emphasized the need for a proactive and assertive approach in advancing intra-African trade, urging stakeholders to prioritize the continent's economic interests and leverage the opportunities presented by the AfCFTA. The strategic partnership between McDan Group, Ghana, and Kenya heralds a new chapter in the realm of intra-African trade, promising enhanced connectivity, efficiency, and economic growth across the continent.