The World Bank has pledged a 1.2 billion US dollar loan to East African nations to improve integration within the region. The financier also vowed to support infrastructure development and to boost the competitiveness in the East African Community (EAC) by providing additional resources for regional infrastructure in the next three to seven years. “We are partnering with the EAC governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC," said Philippe Dongier, World Bank country director for Burundi, Tanzania and Uganda. "We are preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika, and to enhance the capacity and efficiency of the two main EAC ports on the Indian ocean - Dar es Salaam in Tanzania and Mombasa in Kenya.” The funds will also be used to invest in particular transport links to enhance the connection of landlocked countries Burundi, Rwanda, Uganda and South Sudan to the Northern and Central corridors. This will improve access to the ports of Mombasa and Dar es Salaam as well. In conjunction with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), the bank said it will focus on reforms and policies crucial to the development of regional integration through enhanced efficiency of infrastructure investment and financing. Oumar Seydi, IFC director for Eastern and Southern Africa, said, “Working with private sector partners, IFC is already investing more than 1.0 billion...

The World Bank has said it will provide $1.2 billion to support infrastructure development and improve the competitiveness of the East African Community (EAC) states. It will also through private sector affiliates - International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) - provide additional resources for regional infrastructure through market-driven private sector financing and guarantees. The financing will contribute to the EAC states’ planned investments in the next three to seven years. This support is additional to large ongoing individual country programmes. “We are partnering with the EAC Governments, other development partners and the private sector to invest in regional infrastructure and to help deepen policy integration and reduce barriers to trade in the EAC,” said World Bank Country Director for Burundi, Tanzania and Uganda Philippe Dongier. He was speaking during the EAC Heads of State summit on Infrastructure in Nairobi. Inland waterways The retreat was officially opened by Kenya’s Deputy President William Ruto. Participants included Heads of States’ representatives, ministers, chief executives of development banks and regional economic communities, and private sector leaders. Mr Dongier said World Bank is preparing investments to revive the region’s inland waterways on Lakes Victoria and Tanganyika and to enhance the capacity and efficiency of the two main EAC ports on the Indian ocean: Dar-es-Salaam in Tanzania and Mombasa in Kenya. “We will also invest in specific transport links to better connect landlocked countries (Burundi, Rwanda, Uganda and South Sudan) to the Northern and Central corridors, this way improving these countries’ access...

Juba, South Sudan, 23th October 2014 – The Government of South Sudan (GOSS) and TradeMark Africa (TMA) today inaugurated the first National Oversight Committee (NOC) to oversee their trade and customs development programme, a sign of their commitment to improve trade growth and competitiveness. The TMA South Sudan programme is providing technical assistance and financial support worth US$24 million to GOSS. The objective of the programme is to support government and international community’s effort in fast tracking movement of humanitarian goods as well as increasing transparency and accountability in the collection of non-oil revenues and reducing cost of doing trade. The programme further envisages supporting the South Sudan government desire to become a member of regional bodies such as the EAC. The programme is financed by the Government of the United Kingdom and TMA regional resources. [caption id="attachment_4658" align="alignleft" width="400"] From left; First Undersecretary in the SS ministry of Finance and Economic planning Hon. Salvatore Garang Mayardit, TMA CEO Frank Matsaert and UK Deputy Ambassador to South Sudan H.E Amb. Jon Dean.[/caption] Speaking at the inaugural launch, Hon. Aggrey Tisa Sabuni, Minister of Finance and Economic Planning (MoFEP) said; “The Government of South Sudan is delighted to have such a committed ally in trade development like TMA. As a young nation confronting a new era of development, its critical for us that development partners remain conscious of the need for an inclusive and participatory development arrangement that will allow the government and its citizens to participate in nation building. We...

Despite a high profile launch this week by the leaders of Rwanda, Uganda and South Sudan, Uganda’s $7 billion Standard Gauge Railway project is still haunted by procurement snags. The leaders launched the project in Kampala on October 7, as Uganda scrambled to kick-start it with a tentative completion date of March 2018. As government officials put on a show, questions were still being asked not only over how the procurement of the contractor had been handled but also over the basis upon which the contract price of $7.9 billion had been arrived at. The EastAfrican has now learnt that the contracts committee of the Ministry of Works has thrown a spanner in the works, refusing to award a contract to civil contractor China Harbour and Engineering Works (CHEC), citing non-compliance with procurement regulations. In the letter dated October 7, the committee members say they were asked to approve the contract with CHEC because the deal had already been approved under bilateral procedures. The contract committee however pointed out that it had not seen any evidence to corroborate this. “This is to inform you that at its 623rd meeting, the contracts committee considered the submission forwarded under your internal memo of 7th October 2014 and noted that the contracts committee did not approve this procurement as per Section 28 of the PPDA Act. However you have given an explanation that the procurement follows bilateral procedures and conditions for which you have not availed the documents in support of the bilateral...

TradeMark Africa (TMA) an international organisation with its headquarters in Kenya has announced the appointment of its new Board members. Renowned Tanzania Businessman, Ali Mufuruki of Tanzania joins as Board Chair, Ms Merian Sebunya from Uganda and Mr Patrick Obath from Kenya join as board members. Making the announcement TradeMark Africa (TMA) CEO Frank Matsaert said; ‘We are pleased to have these distinguished professionals join our board. They know our work well as they previously served on our Programme Investment Committee (PIC). We warmly congratulate our highly qualified board members on their appointments and look forward to working with them closely.’ Mr. Mufuruki is Chairman and CEO of Infotech Investment Group LTD of Dar es Salaam, and founding partner of East Africa Capital Partners (EACP) and Chairman of Wananchi Group Holdings LTD based in Nairobi Kenya. Mufuruki is the founding Chairman of the CEOs’ Roundtable of Tanzania, as well as Chair of the Africa Leadership Initiative (ALI) East Africa Foundation among other positions. He is a holder of a BSc degree in Mechanical Engineering Design (Reutlingen, Germany 1986) and a Henry Crown Fellow of The Aspen Institute Class of 2001. Ms. Merian Sebunya is a distinguished consultant in the freight transport sector. She is the president of the Federation of East African Freight Forwarders Association (FEAFFA) and Chairperson of the Uganda Freight Forwarders Association and Associated Freight Logistics Centre. Merian is also the Managing Director of BTS Clearing and Forwarding Company based in Uganda, and is a member of various...

South Sudan's strategic importance in East Africa has added a sense of urgency to regional efforts to end the ongoing conflict. There are growing fears that the war could put joint infrastructural projects at risk. Despite two ceasefires, thousands of lives lost and over a million and a half civilians displaced, fighting continues in South Sudan, pitting government troops against opposition forces. The latest ceasefire – the second since violence erupted in December last year - was signed in May between President Salva Kiir and his former deputy, Riek Machar. Flagging commitment by the two leaders to resolving their political differences peacefully is putting to the test the ability of mediators to broker an effective ceasefire. Ever since the fighting started, it has become clear that the world's newest nation was born with many internal institutional weaknesses. If left unaddressed, political analysts say, it could lead to a complete rewrite of the political and economic landscape of the entire region. The spark for the current fighting can be traced back to July 2013, when President Kiir fired Machar and his entire cabinet after a protracted power struggle within the ruling Sudan People's Liberation Movement (SPLM). Upon his dismissal from the government, Machar announced he would run for the presidency in elections then scheduled for 2015. On 15 December 2013, after days of rising tension over political issues, various elements of the Presidential Guard started fighting in their barracks in the capital Juba. The fighting quickly spread to the general headquarters...

President Yoweri Museveni has launched the construction of the $8b Standard Gauge Railway (SGR), revealing that the Chinese contractor will source for funding, which Uganda will pay back. This was at Speke Resort Munyonyo in Kampala. Museveni was joined by his regional counterparts: Paul Kagame of Rwanda and South Sudan President Salva Kiir to launch the project that is intended to reduce the cost of transport in the region and spur economic development. Kenya was represented by Engineer Michael Kamau, the cabinet secretary for transport and infrastructure, while the Ethiopian prime minister Hailemariam Desalegn, sent a special envoy. he SGR is part of the Northern Corridor Integration Project which runs from Mombasa through Nairobi in Kenya to Kampala in Uganda, Kigali in Rwanda and Juba in South Sudan. Explaining how the SGR would reduce the cost of transport, Museveni noted that transportation of an 18-tonne goods container from the port of Mombasa to Kampala presently costs $4,000 (about sh10.4m). However, using the railway, transportation of the same container to Kampala will cost $2,300 (about sh6m). “We have linked up with China Harbor Engneering (CHE). They have good experience in building railways, harbours and bridges and it will be their job to source for the money in terms of a loan which we shall pay back, to build the railway with our engineering brigade of the army.” Museveni said. “We are going to discuss more details with our partners in China. I thank China for being ready to give these huge...

On the second day of his visit to Uganda, President Paul Kagame attended the launch of the Uganda section of the standard gauge railway that will connect Malaba to Kampala. The launch marked the beginning of the 7th Summit of the Heads of State of the Northern Corridor Integration Projects. The Summit, hosted by President Museveni, was also attended by President Salva Kiir of Sudan, Eng. Michael Kamau, Kenya’s Cabinet Secretary for transport and infrastructure, and Dr Fassil Hahom, minister and legal advisor of Ethiopia. The Summit was attended by representatives of Burundi and Tanzania, as well as the East African Community. Launching the railroad, President Museveni pointed to the unprecedented investment in infrastructure and development that the railroad represents. “We are moving into the real business of developing our country. We are here to launch our region into a new era of cheaper transport and cheaper electricity,” he said. The railway will join South Sudan, Kenya, Uganda, Rwanda and DR Congo and will enable trains travel at a speed of 120 kilometers per hour. It is estimated that the railway will reduce the number of days it takes to transport goods from Mombasa to Kampala to only two days. President Kagame thanked all involved for the progress and urged the Summit to keep up the momentum. “We have made good progress but I believe we can do more and even faster. Where there are difficulties, we can form a joint mobilisation campaign and work together to solve challenges,” Kagame...

TradeMark Africa recently participated in the WTOs Public Forum, whose theme was “Why trade matters to everyone”. The opening speeches of the Public Forum focused on the impact of trade on the quality of people’s lives and how the perceptions of this have shifted. UN Secretary-General Ban Ki-moon highlighted that trade can be a driver for a life of dignity for all. Director-General Roberto Azevêdo noted that the greatest proportion of supporters of trade is now found in the developing countries. Kenya’s Deputy President William Ruto said that Africa has risen from a repository of natural resources to an active player in world trade. TradeMark CEO Frank Matsaert participated in the plenary debate during Day one, with the theme “What trade means for Africa”. Click here to listen to the discussions. TradeMark Africa also had the opportunity to show case with its partner, Rwanda Revenue Authority, the successes of the Rwanda Electronic National Single Window. Electronic Single Window (eSW) in Rwanda – an effective tool for bringing down the costs of trade for the government, private sector and consumers. Click here to listen to the presentation. Click here to view Frank Matsaert’s take on why trade matters

Railroad investment is taking off around the African continent, including a Chinese-financed $5.2 billion project linking Nairobi and Mombasa. The line will eventually link the port city with South Sudan, the Democratic Republic of Congo, and Burundi. Nigeria, Tanzania, and other countries have also undertaken massive railroad expansion and rehabilitation projects in the past years in an effort to improve infrastructure and spur economic development. Broadly speaking, infrastructure has been shown to have positive impacts on “income growth and, more tentatively, on distributive equality,” according to a World Bank review paper on the subject. Researchers Remi Jedwab and Alexander Moradi of George Washington University and the University of Sussex, respectively, also found that “modern transportation technology can produce economic change in poor countries by reducing trade costs, integrating markets, and facilitating the circulation of ideas.” In poor or remote regions with higher costs to trade, Jedwab and Moradi conclude that transportation could “permit increased commercialization of agriculture, start an urbanization process, and lay out the foundations of future industrialization.” That means that African countries could truly benefit from rail expansion, especially considering the lack of infrastructure currently in place. Paul Collier, economics professor and director of the Centre for the Study of African Economies at Oxford University, noted in a 2011 article for the IMF that “Nigeria, home to one-fifth of the population of sub-Saharan Africa and one of its most densely populated countries, has but one kilometer of rail for every 262 square kilometers [of land].” By comparison, the...