INVESTING IN AGR0-PROCESSING AND INDUSTRIAL MANUFACTURING OF AGRICULTURAL PRODUCE

1. INVESTING IN AGR0-PROCESSING AND INDUSTRIAL MANUFACTURING OF AGRICULTURAL PRODUCE Reflections on Agro- production and Agro-processing

2. Observations The county has great potential in agricultural production. The main challenge is linkage to markets The county government should take advantage of local investors The price differential between the farm gate price and the market price is high Reflections on Agro- production and Agro-processing

3. Reflections on Agro- production and Agro-processing 4. The county should consider diversifying the product range of agricultural produce especially in coconuts and cashewnuts 5. Organic farming should be promoted both in cashewnuts and coconuts to reap premium prices

4. Reflections on Agro- production and Agro-processing 6.Mespt is willing to boost agricultural credit especially in passion fruit 7. Farmers should be empowered to adopt modern agricultural technologies through capacity building

5. Reflections on Agro- production and Agro-processing 8. The youth should be enticed and empowered to venture in farming 9. The county government should provide a conducive environment for investment 10. Effort should be made to avail upto date data on all agricultural enterprises in one document

6. Reflections on Agro- production and Agro-processing 11. The county government should invest in new technology in agricultural production 12. Policies should be enacted to ensure that a certain percentage of agricultural produce remains in the county 13. Support should be provided in utilisation of local products

7. Reflections on Agro- production and Agro-processing 14. A deliberate effort should be made to set aside a certain proportion of project funds for women and the youth 15.Mou’s for investment should include safeguards for the locals 16. The county should identify specific areas for specific investments

8. Reflections on Agro- production and Agro-processing 16. Farmers should form marketing groups to address the weak linkage between production and marketing 18. Small scale farmers should form cooperatives to take advantage of marketing opportunities

9. INVESTMENTS OPPOPRTUNITIES IN INFRASTRUCTURAL PROJECTS- PORT AND WATER AND SEWERAGE FACILITIES AND SERVICES

10. Concerns and reactions • Whether a feasibility study has been conducted by the Kwale county government to establish the quality of its underground water • Need to explore investment opportunities in water recycling • The available information on quality of underground water is based on a study conducted in 1999 hence the need for the county government to carry out a new study • Based on the 1999 study, the water is fresh except for part of Ramisi River which has saline water

11. Concerns and reactions • How to safeguard from present inefficiency and underperformance lessons manifested at Mombasa port • The role of private sector in port development, management and service provisions since the prevailing environment seems to be averse to privatization of port services yet that would increase efficiency • The port is currently operating at an optimal level of efficiency considering the amount of cargo it was initially designed to accommodate. • Notwithstanding resistance from unions and no approval yet by the National Assembly in relation to port privatization, best practices from efficient world ports like Shangai, Singapore and Dubai exist

12. National focus seems to be on ports along the coast ignoring the inland water bodies e.g.Lake Victoria • Need for statistics on export products from Kwale such as volumes and values of exports from Titanium products (rutile, zircon, ilmente) • Initially Lake Victoria was under Kenya Railway. Its now within KPAs mandate and plans are on going to develop t to the required standard

13. INVESTMENT OPPORTUNITIES IN TOURISM AND ICT IN KWALE COUNTY

14. Speakers and Panelists: Hon. Adan Sheikh (CECM - Tourism and ICT, Kwale County) Paul Musila (Manager, Mwalughanje elephant sanctuary) Fredrick Kabusia- (Safaricom) JawaMwachupa: Programs coordinator nuruyakwale) Moderator: Kauli Mwembe Rapporteur: Salim Juma

15. Key observations opportunities for investment in Kwale County are limitless. Residents/locals are already participating in investment in tourism -the case of the Mwaluganje elephant sanctuary. Partnership are welcome in financing, infrastructure devpt (facilities, roads) ICT is a useful tool to boost tourism The County Government can venture in partnership with communication service providers.

16. Concerns and responses • Challenges posed by human- wildlife conflict at the Elephant sanctuary as apparently the Elephants seem to be immune to the Electric fence. • A new electric fence is being installed since the current one is breakable. • there is an area of about 2km which is unfenced due to social conflict and can be fenced after the social are addressed

17. Concerns and reponses • How packages by mobile telephone companies e.g. Bonga points can improvelives/reduciethe cost of living to the common Mwananchi. • It’s Safaricom customer loyalty scheme for rewards and it is meant to help customers acquire phones at a good rate.

18. INVESTING IN EXTRACTIVE INDUSTRIES

19. Speakers and panelists Dr. Mohammed Pakia Fred Wafula CrispineYongo ChimwagaManga Dr. Leah Tsuma Moderators- Hon. Safina and Parmet Rapporteur: - Mr. Mwatsahu

20. Observations Kwale County is rich with very many mineral deposits which require maximum exploitation for the benefit of people of Kwale County. Investors can use the vastness of this natural resource in Kwale County to put up mining industries like what Base Titanium did.

21. Observations continued There are deep and vast deposits of silica sand within an area of 200km sq and can be harvested up to a depth of 20 m deep. Excavation of silica sand could last for 200 years hence guaranteed investors a long term steady flow of raw materials thus realizing a good return for their investments.

22. Kwale’s minerals and where they are • Duruma Sand Stones • Silica Sand • Gemstones primarily found in Kuranze area • Titanium,ilmente,rutile • Lungalunga and Kinango sub- counties • Marigiza, Vidungeni, Eshuu, Mwachande, Muhaka, Ramisi • Kuranze Maumba and Nguluku

23. Nobium and rare earths • Coal • Lead, zinc and cooper • Mrima,Dzombo and Nguluku area • Tsimba area,Taru and Kinango

24. Investment opportunities available Mechanized mining of Duruma sand stones. Extraction of Niobium and rare earths Extraction of Coal in Tsimba Golini for energy production Cement Factory Sodium silicate plant within silica sands rich areas

25. PROCEDURES FOR GETTING MINING LICENCE Government consent = 50,000- NG Single Business permit = 15, 750- CG County Government application fee = 1, 000- CG Pegging = 40, 000- CG Environmental impact assessment = 150, 000- NEMA Prospecting rights = 5, 000 NG LAND OWNERS CONSENT IN CASE OF PRIVATE LAND

26. Uses of silica Glasses, windscreens and other glass related products Beauty products Production of fiber optic cables for telecommunication Additives in the production of food and pharmaceutical applications.

27. Uses Contd Can be used in DNA and RNA extraction IN hydrated form, it can be used as toothpaste Useful in fiber form as a high temperature thermal protection fabric Used as a thermal enhancement compound in ground source heat pump industries

28. KCIF & CF Objectives

29. HOUSING Issues • Getting clean title deeds from Kwale Land registry is a problem • It is not clear what modalities will be followed in availing land to investors • Are foreign investors allowed to purchase land • Interest rates on mortgage in Kenya is not consistent • Local building materials are grossly under priced at harvesting points

30. Way forward • Both levels of governments have started land registry clean up. • County government is putting in place modalities for land banking starting FY 2014/15 • Foreign investment companies are allowed to buy land in Kwale • Value addition on local building materials need top priority

31. TALENT AND LIVELIHOODS ISSUES There is need for a talent identification and management program for in-school youth population There is need for an elaborate exit strategy for out of school youth population There is need to commodify culture and package for across the board consumption

32. Wayforward A joint committee consisting of CGoK and Kenyatta University to work on an MoU on area of partnership by Septmber 2014 in the areas of talent capacity building and scholarships

33. INVESTMENT FINANCING

34. AVAILABLE FINANCING OPTIONS Asset based financing Public Private Partnerships Value chain funding Trade Financing Grants from from foreign governments through national government guarantees State owned investment actors Diaspora

35. ISSUES Lack of information High cost of technology Unfavourable regulation

36. WAY FORWARD County Governments to come up with regulations that favour the investment climate. County government of Kwale to provide linkages between investors and sources of financing

37. Way forward A further study is necessary to establish the actual volumes and value of silica sands deposit- Engage the KNBS to facilitate and execute this. develop a silica processing plant to facilitate some value addition at site.

38. Way forward Kwale county could adopt a model used in Kilifi to convert saline water into fresh water. There is information available on how this can be done. CGK to pursue this as an alternate water source especially for industrial use