Peace deal good for all
2005-01-07 13:46
Nairobi - The long-awaited signing of a peace deal between Khartoum and the main rebels to end fighting in oil-rich southern Sudan this week, will create massive opportunities for neighbouring countries through increased trade and transportation of the black gold, experts say.
The south, landlocked and politically reluctant to use the northern Port Sudan, will look across its borders for international trade, they added.
Kenyan economist Robert Shaw said: "We will see several traders rushing to southern Sudan to invest there, given that the area is virtually unexploited and there is a vast market."
He said: "Southern Sudan is a blessing for traders because the economy there will start from scratch as a result of 21 years of war.
"Southern Sudan has numerous trade opportunities for the region as a whole, and particularly Kenya."
Kenya to export most goods
A development economist at University of Nairobi, Samuel Nyandemo, said: "Kenya has a bigger edge because there is fighting in northern Uganda bordering south Sudan, so many foreign investors would prefer to pass their goods through Kenya."
He said: "The Kenyan economy is set to gain millions of dollars in the first years of re-construction of southern Sudan."
"Sudan being a member of Common Market for East and Central Africa (Comesa), Kenya will export most of its goods to southern Sudan."
Evoking southern Sudan in his New Year speech, Kenyan President Mwai Kibaki said: "We are going to build roads and railway lines to that country."
Last September, Kenya and the southern rebel Sudan People's Liberation Movement/Army (SPLM/A) agreed on the construction of the first, 1 182km, railway link between Juba in southern Sudan and Kenya's port of Mombasa with work to begin in July at an initial cost of 3.2bn euros.
'Kenya to get good cash'
SPLM/A Commissioner for International Co-operation and Development, Costello Garang Ring, said: "First and foremost, southern Sudan is landlocked.
"This railway line would be used to link us to the outside world. It will also be like our import-export main route.
We also expect to use the rail to transport about 70 000 oil barrels a day to Kenya and other varieties of consumer goods as well."
Kenyan officials said the government and SPLM/A have also been discussing plans to construct a pipeline from southern Sudan to Mombasa.
Shaw said: "The port of Mombasa is more advanced than Port Sudan on the Red Sea, which the Khartoum government is currently using. When oil starts flowing to Mombasa, Kenya will get good cash."
Sudan currently produces about 350 000 barrels of oil a day, most of which is extracted from wells in southern Sudan and exported through Port Sudan.