Countries in the Horn of Africa are eyeing investors to bridge a $7 billion (Sh889 billion) funding gap to advance regional integration.

Experts say the resources will target key initiatives like tackling drought, fostering regional infrastructure networks, energy, digital market, trade and economic integration.

The region’s member states consisting of Kenya, Ethiopia, Djibouti, Somalia and South Sudan, signed a declaration on trade facilitation to facilitate the implementation of a roadmap that would enhance cross-border trade activities.

Priority areas

Under the initiative’s priority package included the World Bank-funded de-risking, inclusion and value enhancement and underground water projects, African Development Bank’s resilience projects, and other support provided by development partners aimed at alleviating the drought situation.

According to National Treasury Cabinet Secretary Njuguna Ndung’u, about 55 per cent of the priority package identified in 2020 are currently being funded by institutions including World Bank, Africa Development Bank (AfDB), and European Union.

“We welcome the interest being shown by our development partners from Japan and the UK present here today as observers to support the initiative within the framework for participation for New Development Partners adopted by the Horn of Africa Ministers in October 2022,” said the National Treasury Cabinet Secretary Njuguna Ndung’u during the 15th ministerial meeting yesterday. Kenya took over the chairmanship in 2021.

The region is currently battling conflict and the worst droughts in 40 years that displaced many households and loss of livestock, their primary source of income. The initiative expects the operations around livestock insurance to start during 2023 to cushion households from drought impact.

High cost of living, limited resources, and continued conflicts around this region have makes the situation tricky.

Over 18.5 million people are currently estimated to be facing acute food shortages in Kenya, Ethiopia, Djibouti and Somalia alone, and the figures could increase as the drought situation worsens.

Finding solutions

Challenges faced in the Horn of Africa can not be addressed through development assistance alone, they require coordinated action by political, security, and humanitarian actors, as well as regional institutions such as the African Union and the Intergovernmental Authority on Development.

Development however does play a central role to complement these efforts and can offer an entry point to continue dialogue during periods of heightened tensions and deepen cooperation in strategic sectors.