Five member states of the East African Community (EAC), Kenya, Uganda, Rwanda, Burundi and Tanzania, issued an invitation to international investors to become involved in upgrading the EAC region’s infrastructure.
Referring to significant oil and gas discoveries in the region, investors attending an investor conference held in Dar es Salaam last week, were told of the opportunities that exist following the hydrocarbon discoveries.
“East Africa is a good bet for investors … this is about mutually beneficial and profitable investments for all stakeholders involved whether public or private,” said Rwandan President Paul Kagame.
The five countries mentioned are hoping to package joint infrastructure plans that will boost trade and hasten economic integration.
According to a 2015-2025 strategy document issued by the five, between US$68 billion and $100 billion is needed over the next 10 years to build roads, new ports, railways, oil pipelines and transmission lines.
Kenya together with Uganda and Rwanda has already embarked on the construction of a new standard gauge railway from the port of Mombasa which will connect the three countries. Tanzania is also issuing details regarding the upgrading of existing railways and new links to connect with Burundi, Rwanda, Uganda and the eastern DRC.
This involves a 1,464-km long standard gauge railway from the port at Dar es Salaam and Rwanda. Tanzania also plans to build a new container port at Bagamoyo, north of Dar es Salaam.
Kenya has already announced plans of the new deepwater port near Lamu and a 1,700km standard gauge railway corridor from Mombasa to Rwanda via Uganda. According to Kigame the plans, although ambitious, are all economically sound.
Tanzania’s President Jakaya Kikwete said the central corridor through Tanzania and the northern corridor from Mombasa complemented each other. “”It is my wish to see the northern and central corridors infrastructure to be one in the future,” he said. Kikwete is the current chairman of the EAC.
EAC secretary general Richard Sezibera said the central and northern corridor projects would be coordinated to achieve a common regional development goal. Kikwete revealed that the DRC and Zambia were interested in joining the central corridor projects. The TAZARA railway provides both countries with a rail link to the port at Dar es Salaam. TAZARA has been in existence since the mid-1970s but has been poorly maintained.
Tanzania was tackling the issue of non-tariff barriers to trade in the region and has issued instructions limiting the number of police and customs checkpoints along the road corridor.
President Uhuru Kenyatta meanwhile has told the Kenyan parliament that he was ready to break ground for the first three berths at the new Lamu port. The $446 million contract for this has been awarded to a consortium headed by China Communications Construction Company.
Kenyatta emphasised the government’s drive to reduce transit times for goods moving from the port at Mombasa to Kigali in Rwanda, which he said now takes just three days between the port and Kampala in Uganda or four days to Kigali, compared with the 18 to 20 days previously. Much of this has been achieved by eliminating a large number of police and customs roadblocks along the route.