Sealink to West and Central Africa

Fri, Jul 26, 2013

By publisher

4 MIN READ

–

Sealink, a project conceived by Nigeria Export-Import Bank and others throws up investment and trade opportunities in West and Central African Region

THE first investment forum of Sealink Project of Sealink Protect held in Accra, Ghana, July 22. The Sealink Project was conceived by the Nigeria Export-Import Bank, NEXIM,  the Federation of the West and Central Africa Chambers of Commerce and Industries, FEWACCI, and TRANSIMEX (an integrated logistic services provider based in Cameroon). The forum offered a unique and compelling investment opportunity to private sector entities in the fast growing West and Central African region.

The Sealink Project offers also a unique and compelling investment proposition in the fast growing West and Central African region because the sector is poised for growth.  But Inter and intra-regional trade in West and Central Africa has been hampered by the poor state of transportation infrastructure. Introducing a direct coastal link between the two regions is expected to have a multiplier effect on rate of economic growth in these regions thus providing adequate returns for investors.

The project has both national and supranational support. The Sealink Project is a private sector initiative which has gained the full support of various supranational bodies across West and Central Africa including the ECOWAS Commission, FEWACCI, and the Maritime Organisation of Central Africa, MOWCA. This is expected to enhance funding and assist the company to navigate the maritime regulatory regime in the region. It provides opportunity for diversification. The investment provides an opportunity to enable investors without prior exposure to the maritime sector or to the West and Central Africa region to diversify their portfolio and would grow with other sectors including oil and gas, agriculture and mining which are currently witnessing exponential growth in West and Central Africa.

 It also has a large capacity for passengers and cargoes: With the push for free and unrestricted movement of goods and services, the Sealink Project is expected to benefit from its capacity to carry large cargo and passengers. The project also has strong economic fundamentals and will enjoy a near monopoly status with its connection of the West and Central African ports. The unique proposition of Sealink ensures that the company is able to charge premium fare owing to its offering of a safe, secure, modern fleet with modern communication equipment that guarantees passengers safety.

In order to ensure a successful take-off for the project, these agencies had earlier on in 2012 formed a special purpose vehicle, Sealink Promotional Company Limited to drive the strategy and business model for the successful implementation of the project.

Roberts U. Orya, managing director of Nigerian Export-Import Bank, said the purpose for setting up a regional/transnational maritime shipping company is to link seaports on the West and Central African coast in order to facilitate trade and ensure a smooth transportation of cargo and passengers within and between the two regions. This objective is primarily towards realising the objectives of the founding fathers of ECOWAS for free movement of persons, goods and services within the sub-region.

The current board of directors of Sealink comprises representatives of these agencies. The board is assisted by an advisory committee (referred to as the Technical Committee) which is composed of experienced technocrats in the maritime industry across West and Central Africa.

The Sealink project is currently endorsed and supported by various regional bodies that identify with it. Notable among these bodies are the ECOWAS, the Maritime Organisation of West and Central Africa, MOWCA, Union of African Shippers’ Council, African Development Bank, ECOWAS Bank for Investment and Development and West African Development Bank, BOAD. The Project has been presented to the governments of member countries as well as their various maritime and ports organisations and authorities of member countries.

The Nigerian Export-Import Bank  was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate to promote the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee and export credit insurance; business development and financial advisory services among others.

In pursuit of its mandate of promoting export diversification and deepening the non-oil sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the manufacturing, agro-processing, solid minerals and service (tourism, transportation and entertainment) industries.

— Aug. 5, 2013 @ 01:00 GMT