IN what sounds to be something akin the European Marshall Plan after economies of the countries in Europe went on their knees at the end of World War II, Eastern and Central African leaders last week convened in Dar es Salaam for a similar initiative.

The Marshall Plan required a lessening of interstate barriers, a dropping of many petty regulations constraining business and encouraged an increase in productivity, as well as adoption of modern business procedures.

In a similar style regional leaders last week pledged to use the Central Transport Corridor to unlock the region’s social and economic potential.

The leaders, among other things, flagged off four modern cargo trains with consignments destined to Burundi, eastern Demoratic Republic of Congo (DRC), Rwanda and Uganda.

They rightly observed that the launch of the corridor would herald the beginning of the new way of doing things after a long period that was dominated with wasteful hauling of millions of tonnes of cargo along the over-stretched roads.

The leaders were out to lure investors for a massive plan to upgrade infrastructure in the region that has made big hydrocarbon discoveries.

The East African Community (EAC) member states – Tanzania, Kenya, Uganda, Rwanda and Burundi, whose combined gross domestic product (GDP) is $110.3 billion (about 204tri/-), are working to package joint infrastructure plans aimed at boosting trade and speeding up economic integration in the region.

Oil and gas discoveries in Kenya, Uganda and Tanzania have turned the region into a globally reputed exploration hotspot. “East Africa is a good bet for investors … this is about mutually beneficial and profitable investments, for all stakeholders involved whether public or private,” Rwandan President Paul Kagame was quoted as telling an investor conference in Dar es Salaam last week.

According to EAC authorties, the region for its 2015-2025 strategy needs between $68 billion and $100 billion over the next 10 years to build roads, ports, railways, transmission lines and oil and gas infrastructure.

Tanzania plans to upgrade its railway into the standard gauge and connect land-locked Zambia, Uganda, Rwanda, Burundi and eastern Democratic Republic of the Congo to its Dar es Salaam port through a 1,300 km central conduit.

Kenya is reportedly pushing for the development of a 1,700 km northern corridor to link Uganda, Rwanda, Burundi and Congo to its port at Mombasa.

Tanzania and Kenya also plan to invest in new port projects, at Bagamoyo and Lamu respectively. EAC Secretary General, Dr Richard Sezibera, was also quoted as saying that central and northern corridor projects would be coordinated to achieve a common regional development goal.

President Jakaya Kikwete, told the regional conference, that the two infrastructure corridors could complement each other. “It is my wish to see the northern and central corridors infrastructure to be one in the future,” Mr Kikwete, who is the current chairman of the EAC, said.

The president said the DRC and Zambia had also expressed interest in joining the central corridor infrastructure projects. But the good news from the meeting is that Tanzania was now tackling non-tariff barriers to trade in the region, like reducing the number of police and customs checkpoints on its road networks.

Transporters will soon rather than later move more freely without obstruction by cumbersome police check and tax authorities along the roads to Zambia, Burundi, DRC and Rwanda.

According to the Transport Minister, Mr Samuel Sitta, Tanzania’s president will soon launch the countruction of the upgraded rail line from Mpiji, to Kigoma and Mwanza, through Tabora.

The line will finally reach Rwanda and Burundi. According to Mr Sitta, the country plans to spend $14.2 billion to construct a new rail network in the next five years financed with commercial loans.

Analysts say the country through the central corridor projects stands to boost its economy by capitalising on its long coastline. The railway line is going to unlock the potential in fast growing economies of the land-locked nations.

The projects include constructing a 2,561-km standard gauge railway connecting the port at the commercial capital of Dar es Salaam to Tanzania’s landlocked neighbours, Rwanda and Burundi at a cost of $7.6 billion, Mr Sitta said.

Two additional lines, to be built at a combined cost of $6.6 billion, would connect Dar es Salaam to the coal, iron ore and soda ash mining areas in Liganga and Mchuchuma in Njombe Region, as well as Manyara Region.

Mr Sitta said the projects would be financed by commercial loans from a consortium of banks under a 20-year repayment period. The government has appointed Rothschild to help secure the financing.

Source: All Africa

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