Nairobi -based Afri Fund Capital has announced an ambitious plan to raise $6 billion (approximately 780 billion Kenyan Shillings) in commercial debt. This funding is specifically designated to complete the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, a regional mega-project long regarded as the key to unlocking the economic potential of the Horn of Africa.
The announcement follows a strategic Memorandum of Understanding (MoU) signed on March 9 between Afri Fund Capital and the Capital Markets Authority (CMA) of Kenya. This partnership aims to move away from direct government borrowing and instead create a regulatory environment conducive to private sector-led financing.
To reach the $6 billion target, Afri Fund Capital is looking far beyond East African borders toward global markets. The company plans to follow a cross-listing strategy, listing the debt on major international stock exchanges including the Nairobi Securities Exchange (NSE), the London Stock Exchange (LSE), and the New York Stock Exchange (NYSE).
This triple-listing approach is designed to address structural limitations within the domestic market. While Kenya’s pension and asset management sector has grown significantly—holding over 2.8 trillion Shillings in assets—the cost of local capital remains too high for long-term infrastructure. Additionally, the sheer scale of the LAPSSET project requires the high level of liquidity that only global markets can provide.
A senior analyst monitoring the agreement noted that the LAPSSET corridor is a generational project that cannot be supported by local financial capacity alone. By taking this initiative to London and New York, Afri Fund is presenting African infrastructure not just as a regional development project, but as a viable international investment option.
The $6 billion raise is intended for critical sections of the corridor that have been delayed due to funding shortages among partner countries. Key priorities include the expansion of the Standard Gauge Railway (SGR) to connect Lamu Port with Isiolo and eventually Moyale on the Ethiopian border, the strengthening of high-capacity road networks to facilitate freight movement, and the development of Special Economic Zones (SEZs) to encourage export-oriented industries at Lamu Port.
For Ethiopia, completing these links holds significant strategic value. Currently relying on the Port of Djibouti for over 90% of its trade, the LAPSSET corridor provides Ethiopia with an alternative maritime gateway, which could drastically reduce logistics costs for the region’s fastest-growing economy. Perhaps the greatest benefit of this initiative is its ability to ease the pressure on national treasuries.
