Contribution with commitment and unity, it is possible to rebuild.
It is natural that in the aftermath of the Westgate Mall tragedy we mourn our dead, comfort those who have been injured and pray that we find our lost brothers and sisters. Equally important is for us to look to the future and to rebuilding our nation. This will surely take steely resolve to continue on the road to recovery united as we have been in this time of grief. In the process, we should take comfort in a few beams of hope that have broken through.
This is not just a Kenyan tragedy. For one week we witnessed the world watching this terror unfold alongside each of us. Even as our security forces and civilians streamed in to rescue survivors our international partners bought food for those professionals who remained on vigil – and now as we undertake the gruesome task of assessing the damage and combing through the wreckage for bodies, they remain lending support. The main take away here is the world recognizes that this act could have happened anywhere.
For a singlemoment in time we joined together as one nation. This proves that it is possible, that we can work together for the good of our country. Now that we have this experience, let it be the foundation for a blueprint that guides our every step into the future – to build our economy, to reconstruct what we have lost, and to create a better and more secure country for the next generation.
The Kenyan economy has not been extinguished. If this was the intent by the perpetrators, they have not been successful. This is a reflection of the country’s determination and also of its economic strength. One single act of terror will not be enough to kill industry here. This has not been lost on international investors. That the banks have not been deterred and still plan to back the launch of Kenya’s debut sovereign bond issue scheduled for release in the coming weeks is testament to their belief in Kenya’s economic potential.
While tourists may have paused momentarily from travelling, there is reason to believe these numbers will rebound. Terrorist acts in any travel destination are likely to impact negatively on a country’s tourism at least for the short-term. For instance, the Kenya Bureau of Statistics indicates that the US embassy bombing in 2002 saw Kenya’s tourism earnings dip slightly from Ksh24.3 billion in 2001 to 21.7 billion in 2002 making a quick recovery in 2003 to 25.8 billion. The 9/11 attacks in the U.S. is another high profile example, which reportedly caused a 20% decline in tourism to the U.S. The main point is that it is entirely normal for tourism to be impacted, but as past experience shows, any decrease will likely be temporary.
These points together should provide optimism that Kenya’s risk profile will not be permanently altered. From our perspective, as a provider of political and commercial risk insurance, we have witnessed some encouraging signs. First, there has been an outpouring of sincere concern for the country from our international partners. Second, we have an opportunity to rebuild the Westgate structure, thanks in part to money that will be paid out by local and international insurance and reinsurance partners. That the international investors, who built Westgate Mall, took insurance cover in the first placeshould send a strong message to other investors. The ultimate lesson from this tragedy is that Kenya is just as secure as anywhere in the world to do business – with the backing of political risk cover for their investments, it is possible to recover and to rebuild after a loss.
George Otieno is the Chief Executive Officer of the African Trade Insurance Agency (ATI) the local reinsurer of terrorism & sabotage cover on the Westgate Mall.
