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PUBLISHED ON June 14th, 2016

East Africa govts should make way for private investment in infrastructure

NAIROBI (HAN) June 13.2016. Public Diplomacy & Regional Security News. East African governments are determined to succeed in their global races to create growth and deliver lasting prosperity. They recognise that to build a strong economy necessary for a fairer society, they require infrastructure that competes with the best in the world. One only needs to look at the steady and substantial infrastructure spends over the years.
The Kenyan 2016/2017) budget did not disappoint. Allocations of over $3.5 billion, representing over 15 per cent of the budgetary allocations, were channelled towards infrastructure and apportioned as follows, undoubtedly in order of priority; standard gauge railway (SGR) $1.55 billion, roads  $1.48 billion, energy $0.40 billion, Lapsset $100 million and ports $55 million.
As expected, the majority of the Kenyan budget has been allocated to projects aimed at enhancing transport and logistics, in order to ease the cost of doing business in the country and bolster its competitive edge compared to its peers. It is projected that total traffic on the Northern corridor will double in 2016 from the 2013 levels of 21.5 million tonnes.
The Tanzanian 2016/17 infrastructure budget also has a strong focus on developing its Central corridor; which undoubtedly will create strong competition for the Kenyan Northern corridor. Tanzania allocated $143 million to accelerate developments to renovate the Central railway line that runs from Dar es Salaam to Kigoma on Lake Tanganyika; and $9 million to the construction of the Mbegani port in Bagamoyo.
The Ugandan government is likely to benefit from the competition between the two coastal nations, and plans to utilise private finance to complement Kenyan and Tanzanian infrastructure development with a Hoima-Tanga crude oil pipeline and a PPP for Kampala-Jinja Expressway.
The French government through its overseas development agency, Agence Française de Development (AFD), recently committed over $200 million for the Expressway development which lies on the Northern corridor.
Furthermore in its 2016/17 budget, the Ugandan government allocated $56 million to implement programmes for oil and gas, and institutional and skills development including operationalising the National Pet
Furthermore in its 2016/17 budget, the Ugandan government allocated $56 million to implement programmes for oil and gas, and institutional and skills development including operationalising the National Pet
Source: Geeska Africa

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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