West Africa has inched a step towards realising its dream for a sub-regional shipping line. It has incorporated a Special Purpose Vehicle (SPV) known as the Sealink Promotional Company Limited in Nigeria, The Nation reports.
To ensure the successful operation of the SPV before it dove-tails into the shipping line, the Federation of West African Chambers of Commerce and Industries (FEWACCI) over the weekend approached the Economic Community of West African States (ECOWAS) for a grant of $1.5 million.
The leader of the FEWACCI and immediate past president of the Ghana National Chamber of Commerce and Industries Mr Wilson Krofor told the ECOWAS President that if the sub-regional body provides the US$1.5 million grant ECOWAS could have a representative on the board of the SPV and shipping line if it so desires.
The SPV (which is a promotional company)- Sealink Promotional Company Limited - RC 992642 has been incorporated under the Companies and Allied Matters Act 1990 of Nigeria, the shares of the promotional SPV is nominally held by FEWACCI–representing ECOWAS’ private sector, Transimex Integrated Logistics Providers – representing Central Africa’s private sector.
Mr Wilson Krofor while making the appeal noted that investors in the SPV can convert their investment into the equity of the shipping line at agreed rates stressing that FEWACCI wants "the project to be an ECOWAS project and there was need to demonstrate that ECOWAS can do it," the $1.5 million grant he said will put the sealink project on a sound footing.
Before the incorporation of the SPV in Nigeria a couple of weeks ago the Nigeria Export Import Bank (NEXIM) had supported the initiative with $250,000 which the FEWACCI will manage and run until it transforms into the shipping line. $60 million is required for the three ships that the shipping line will commence business with and this is to be financed by shareholders.
Three Major Market Segments have been identified as the routing strategy: these are Freetown-Conakry-Bissau-Banjul-Dakar (Combined freight and passenger cabotage); Cotonou-Calabar-Douala-Libreville (Combined freight and passenger cabotage); and Libreville-Dakar (Freight Only – major ports in range)
The total project cost is estimated at $60 million with $36 million to be utilised to purchase vessels, equipment, office space and other infrastructure, while $24 million will be for working capital to cover general and administrative expenses.
The project would be funded through equity ($36 million) and debt financing ($24 million).
Responding, ECOWAS President Ambassador Victor Gbeho assured the FEWACCI of the body’s support for the project "because it is an ECOWAS initiative and it is also in line with the integration agenda of ECOWAS."
ECOWAS he said "wants to refocus ECOWAS from ECOWAS of states to ECOWAS of people by generally doing things together, so as to develop fast. By supporting the sealink initiative, ECOWAS intention he pointed out "is not to develop one or two countries but to develop all ECOWAS countries."
ECOWAS President Ambassador Victor Gbeho urged FEWACCI "to leave politicians far behind because enterprises run by governments in the first half of the century did not do well this is an opportunity for the business community to turn things around for the better.
He assured the members of the chambers of commerce and industries that he would "talk to political leaders to key into sealink and will respond to the request for the US$1.5 million as soon as ECOWAS governments get the formal request."
The ECOWAS he said has agreed to improve marine business in the sub region stressing that West Africa "cannot achieve integration unless we can move goods and compete favourably with developed economies.
He lamented the over centralization of power in the hands of politicians which he said is the bane of economic development in West Africa.
To ensure the successful operation of the SPV before it dove-tails into the shipping line, the Federation of West African Chambers of Commerce and Industries (FEWACCI) over the weekend approached the Economic Community of West African States (ECOWAS) for a grant of $1.5 million.
The leader of the FEWACCI and immediate past president of the Ghana National Chamber of Commerce and Industries Mr Wilson Krofor told the ECOWAS President that if the sub-regional body provides the US$1.5 million grant ECOWAS could have a representative on the board of the SPV and shipping line if it so desires.
The SPV (which is a promotional company)- Sealink Promotional Company Limited - RC 992642 has been incorporated under the Companies and Allied Matters Act 1990 of Nigeria, the shares of the promotional SPV is nominally held by FEWACCI–representing ECOWAS’ private sector, Transimex Integrated Logistics Providers – representing Central Africa’s private sector.
Mr Wilson Krofor while making the appeal noted that investors in the SPV can convert their investment into the equity of the shipping line at agreed rates stressing that FEWACCI wants "the project to be an ECOWAS project and there was need to demonstrate that ECOWAS can do it," the $1.5 million grant he said will put the sealink project on a sound footing.
Before the incorporation of the SPV in Nigeria a couple of weeks ago the Nigeria Export Import Bank (NEXIM) had supported the initiative with $250,000 which the FEWACCI will manage and run until it transforms into the shipping line. $60 million is required for the three ships that the shipping line will commence business with and this is to be financed by shareholders.
Three Major Market Segments have been identified as the routing strategy: these are Freetown-Conakry-Bissau-Banjul-Dakar (Combined freight and passenger cabotage); Cotonou-Calabar-Douala-Libreville (Combined freight and passenger cabotage); and Libreville-Dakar (Freight Only – major ports in range)
The total project cost is estimated at $60 million with $36 million to be utilised to purchase vessels, equipment, office space and other infrastructure, while $24 million will be for working capital to cover general and administrative expenses.
The project would be funded through equity ($36 million) and debt financing ($24 million).
Responding, ECOWAS President Ambassador Victor Gbeho assured the FEWACCI of the body’s support for the project "because it is an ECOWAS initiative and it is also in line with the integration agenda of ECOWAS."
ECOWAS he said "wants to refocus ECOWAS from ECOWAS of states to ECOWAS of people by generally doing things together, so as to develop fast. By supporting the sealink initiative, ECOWAS intention he pointed out "is not to develop one or two countries but to develop all ECOWAS countries."
ECOWAS President Ambassador Victor Gbeho urged FEWACCI "to leave politicians far behind because enterprises run by governments in the first half of the century did not do well this is an opportunity for the business community to turn things around for the better.
He assured the members of the chambers of commerce and industries that he would "talk to political leaders to key into sealink and will respond to the request for the US$1.5 million as soon as ECOWAS governments get the formal request."
The ECOWAS he said has agreed to improve marine business in the sub region stressing that West Africa "cannot achieve integration unless we can move goods and compete favourably with developed economies.
He lamented the over centralization of power in the hands of politicians which he said is the bane of economic development in West Africa.