Succour as Maritime Bank is Underway

Relief appears to be coming the way for indigenous operators in the maritime sector as a specialised multilateral development financial institution is being berthed to provide long term funding.

Despite the huge potential of the Maritime sector to deepen the economy, generate foreign exchange and create massive employment, it has suffered substantial neglect due to the critical unavailability of sustainable sources of long term funding.

However, the planned Regional Maritime Development Bank is expected to take care of most the challenges. The bank is the brainchild of countries in the West and Central African regions and was mooted over a decade ago, when the Federal Government of Nigeria agreed to host the headquarters of the bank. Unfortunately, nothing has been done over the years until recently, when the Presidency and the Minister of Transport galvanised activities towards the setting up of the bank.

It is expected that the bank will have as its primary focus funding of Maritime and ports infrastructure, acquisition of cabotage, ocean going and crude oil carrying vessels, aquaculture, human capacity development and deepening of the maritime value chain.

Eight key countries in the West and Central African have signed up to join the Bank and capital-raising exercise is ongoing with close to $500 million in commitments already being offered by funding partners to finance projects.

The maritime sector is projected to contribute circa $100 billion annually to regional GDP if properly harnessed.