Convenience at minimum cost is a leading consideration for investors looking for new locations to set up enterprises. Around the world, industrial parks have become the popular vehicle for countries to provide a competitive environment for industries to take off. Technically, an industrial park is a geographically delimited area, intended for the settlement of industrial plants with proper location, infrastructure, equipment and services conditions, and with a permanent administration for its operation. Recently, Uganda announced that it is setting up 22 new industrial parks around the country. This is commendable if the government does not go back on its word by failing to put in place the basics needed to attract both local and foreign investors. It is going to be expensive, but will pay off in the long run if it is done right. All the Tiger Nations of East Asia developed industrial parks during the 1980s and early 1990s which helped attract investment especially from Japan. South Korea started in the 1960s. The government at the time adopted a strategy of concentrating industries in regions with high growth potential, rather than dispersing investments nationwide, in consideration of the country’s limited financial resources. The policy has worked out well as reflected in South Korea’s spectacular growth. Note, this is the country with the highest internet penetration in the world. Today, industrial parks are the industrial/manufacturing hubs that drive the economies of Thailand, Indonesia, Malaysia and the Philippines. For the East African Community (EAC) to take advantage of a similar...

Khartoum’s letter to Arusha seeking a place in the EAC returned with negative response with the country being politely told that, in order for Northern Sudan or any other African state to be allowed in the regional bloc, it must share a common border with any of the existing member states, that is Kenya, Rwanda, Uganda, Tanzania or Burundi. Last month’s admission of South-Sudan to the Arusha Pivoted East African Community now paves way its neighbour, further north at Khartoum to also be considered to become the seventh member of the community which was revived back in 1999, but as of now it is all silent at the community secretariat here. It was actually North Sudan, headquartered at Khartoum which was first to apply to be allowed to join the East African Community (EAC) five year ago. However, its request was placed on hold because in order for a country to be a member of the EAC, it must share a common border with any of the initial five partner states. Efforts to find the EAC Head of Corporate Communications, Mr Richard Owora Othieno, to comment on the issue last weekend, proved futile as he wasn’t around and his phone was unreachable. South Sudan, which borders the two EAC member states - Kenya and Uganda in the South - apparently stood in-between Khartoum, but since it has now become a member, it is possible for North Sudan to re-apply and be considered to join EAC. South Sudan brought into the...

NAIROBI: Kenya is among the best performers in regional integration in the continent, a new index has shown. In the Africa Regional Integration Index (ARII), the first index of its kind that measures the continent’s level of trade integration, Kenya topped in three of the four regional economic communities (RECs) in which it is a member. Save for the Community of Sahel-Saharan States (CEN-SAD), Kenya was the best performer in regional integration in the East African Community (EAC), the Common Market for Eastern and Southern Africa (Comesa) and the Inter-governmental Authority on Development (Igad). The country scored highly in trade integration, meaning its level of customs duty on imports was low, and it also had a huge share of intra-regional trade goods. However, trade between Kenya and the East African states of Uganda, Tanzania, Rwanda and Burundi has been jolted by increased imports of cheap Chinese products into the region. Still, the country was listed among those that have been active in connecting customs operations, liberalising tariff lines and making it simpler to measure non-tariff barriers. The country also scored highly in productive integration, free movement of people, and financial and macro-economic integration. The index is a collaborative effort between the African Development Bank (AfDB), the African Union Commission (AUC) and the Economic Commission for Africa (ECA). FIVE MEASURES Countries or RECs are assigned scores on a scale of 0.0 to 1.0. ARII was created using five dimensions: regional infrastructure, regional trade, productive integration, free movement of people, and financial...

Tanzania is planning a $300 million energy project that will see it export electricity to Kenya within the next two years. The project is being financed by the African Development Bank (AfDB). Tanzania Electric Supply Company (Tanesco) deputy managing director Deckian Mhaiki told The EastAfrican that part of the project will involve a 2,000MW supply line to Kenya, to be in place by 2018. Mr Mhaiki said that Tanesco is in the final stage of floating a tender for the design and construction of the line to a border town in Kenya. He added that Kenya had indicated to Tanesco that it needed about 1,000MW through a double traffic line/ an extension of 1,600km-long backbone electricity transmission line running from the Tanzanian town of Iringa to Shinyanga through the towns of Dodoma and Singida. Mr Mhaiki, however, said that the construction of the 680km line between Iringa and Shinyanga that had been slated for completion in June, has been delayed for another three months. The line is also meant to provide mining companies in the Lake Victoria area in Tanzania with reliable electricity. The Tanesco official said a feasibility study on a $500 million worth project to connect the Tanzanian supply line with that of the Zambia has started as part of a project to link East African and the Southern African electricity pools. Tanzania, which now depends on gas for 60 per cent of its domestic power consumption, is also eyeing markets in drought-prone Southern African countries. Currently, Tanzania...

In what signals the country's stay in a forced marriage, Tanzania's performance in a number of dimensions of regional integration has lagged behind that of its East African peers -Kenya, Rwanda, Uganda and Burundi. This is according to the Africa Regional Integration Index (ARII), a new tool designed to measure the level of regional integration among African countries. The index is a collaborative effort between the African Development Bank (AfDB), the African Union Commission (AUC) and the Economic Commission for Africa (ECA). It seeks to collect data on the impacts of regional integration. Countries are assigned scores from a scale of 0.0 to 1.0. It was created using five dimensions including regional infrastructure, regional trade, productive integration, free movement of people and financial and macro-economic integration. While the four countries have performed well above the African average- Tanzania has not. Kenya, the largest economy in the region, set the example in regional integration leading in three of the five dimensions that was used to design the index including regional trade, productive integration and free movement of people. Tanzania was last three dimensions including regional infrastructure, free movement of people, financial and macroeconomic integration. In essence, it is easier for a Tanzanian to enter Kenya and set a business than it is for a Kenyan to get into Tanzania and do the same. READ MORE East Africa trading bloc ranked high in regional integration Tanzania searches for "ghost workers" on public sector payroll Treat Kenyan VIPs with more decorum Tanzania is...

Africa might be a century behind the Western curve, but visionary leaders are starting to make the same bets which transformed the world’s dominant economies. There is little doubting the power of railway lines to open up trade and, with it, transform stagnant regions. All it needs is the selfless will of those taking the decisions. For decades, conflicting priorities has bedevilled such options – plundering of the public purse among the most obvious. But once graspers are replaced with those determined to serve the common good, magic is unlocked. Never bet against human ingenuity, once people are given the right tools. – Alec Hogg Bloomberg) — On a sweltering Kenyan morning on the outskirts of a national wildlife park, Chinese and local workers maneuver a massive concrete rail bridge structure onto towering support piers. In the distance, trucks loaded with shipping containers rumble down a highway. The bridge at Voi, northwest of the port of Mombasa, is the latest construction frontline for the initial 327 billion shilling ($3.2 billion) stretch of an ambitious railway project to link the East African country with landlocked neighbors including Rwanda and Uganda. As a faster alternative to the trucks clogging the only road running inland to the capital, the Chinese-built and -financed standard-gauge railway, known as the SGR, has the potential to transform trade in the region. East_Africa_Railway_April_2016 Kenya’s rail line, the country’s biggest investment since independence in 1963, is among the most advanced of the more than $30 billion of African rail...

China is negotiating for the creation of a free trade agreement with the EAC. The EAC has already signed co-operation agreements on trade with the US and the EU. Recently, China wrote to the EAC Secretary-General proposing to negotiate with the EAC partner states a comprehensive free trade agreement (EAC-China FTA). China also requested to undertake a joint feasibility study with the EAC on the proposed FTA, outgoing Secretary-General Richard Sezibera informed the Council of Ministers at a meeting in Arusha. The Council directed the Secretariat to undertake a comprehensive cost-benefit analysis on the implications of negotiating FTAs with third parties. "We are working on the directive of the Council," EAC spokesperson Richard Owora said. He said they expect to conclude the work by June 30. However, East African Business Council executive director Lillian Awinja cautioned that free trade with China would hinder EAC industrialisation. "EAC shouldn't rush to negotiate an FTA with China. We need to study, consult a wide range of stakeholders, and establish the impact of such a deal on the EAC industrialisation blueprint," Ms Awinja told The EastAfrican. She said the EAC needs to protect its investors in the manufacturing industry rather than expose them to unfair competition. Ms Awinja said that already China floods the EAC market with its products. "China has the capacity to flood the whole world with their products. If we are to protect our industries, let's choose only a few products from China," said Gasper Mpehongwa, a development lecturer at Tumaini...

Construction for the new Lamu Port Southern Sudan-Ethiopia Transport corridor is expected to drive significant opportunities for the breakbulk sector, according to predictions from research consultancy Africa House. In a recent research note the firm states that nine development zones or "growth areas" have been identified including a dedicated bulk cargo center at Lamu which will help the port, as well as Isiolo area in the western interior, become major transport hubs. “It is estimated that Mombasa Port will have outstripped its capacity by 2025,” a spokesperson for Africa house said, adding that “a contract for the first three of planned 32 berths [at Manda Bay in Lamu] has already been awarded to a consortium of companies led by China Communications Construction Co. with the value of contract at 42 billion Kenya shillings.” Despite the overall positive expectations for growth in project cargo demand in the region the firm cautions that some factors still threaten downside risk. “Recent developments may, however, reduce the impetus for the LAPSSET Corridor. Uganda and Tanzania have announced the routing of the oil pipeline from Lake Albert to Tanga Port in Tanzania rather than Lamu. Ethiopia is strengthening its trade corridor to Djibouti Port,” a spokesperson added. Headquartered in Johannesburg, Africa House was formed following the merger of Whitehouse & Associates and Africa Project Access. The firm provides trade and project environment analysis alongside bespoke research on projects and opportunities in African transport and breakbulk markets. Source: Break Bulk

Kenya is fast cementing its reputation for remarkable economic growth. With GDP growth averaging well above 5% for the 12 months to September 2015, impressive improvements in government finances, and falls in oil prices significantly reducing its imports bill, the future is bright for Kenya. The East African Community (EAC) as a whole is emerging as a beacon for trade. It contains fast-developing economies, and last year’s introduction of a single customs territory is already benefiting cross-border commerce. Foreign investment into sub-Saharan Africa grew last year, notably from diaspora communities, and Barclays’ Africa Trade Index identified East Africa as the trade hub to watch. With favourable economic conditions comes an expanding domestic market; and entrepreneurs are increasingly stepping up to meet this demand. The region’s growing reputation for entrepreneurship goes hand-in-hand with its ambitions for infrastructure development. Any entrepreneur will rely on digital, energy, and transport infrastructures. The World Bank estimates the impact of Africa’s infrastructure gap on productivity as 40%, leading to a 2% drop in growth. Fast-growing economies like Kenya’s require infrastructure that keeps pace with business growth. The UK is a global leader in many of the sectors for which Kenya has greatest demand: infrastructure, advanced engineering, energy, ICT and defence and security. In these and other specialist areas, UK expertise can help accelerate Kenya’s development and economic growth. Increasingly, financing and risk insurance for large-scale infrastructure projects across the world come from international export credit agencies. For example, loans used to fund projects may be guaranteed...

On a sweltering Kenyan morning on the outskirts of a national wildlife park, Chinese and local workers maneuver a massive concrete rail-bridge structure onto towering support piers. In the distance, trucks loaded with shipping containers rumble down a highway. The bridge at Voi, northwest of the port of Mombasa, is the latest construction frontline for the initial 327 billion-shilling ($3.2 billion) stretch of an ambitious railway project to link the East African country with landlocked neighbors including Rwanda and Uganda. As a faster alternative to the trucks clogging the only road running inland to the capital, the Chinese-built and -financed standard-gauge railway, known as the SGR, has the potential to transform trade in the region. A wagon carries railway sleepers on a superbridge which will form part of the railway A wagon carries railway sleepers on a superbridge which will form part of the railway Photographer: Riccardo Gangale/Bloomberg Kenya’s rail line, the country’s biggest investment since independence in 1963, is among the most advanced of the more than $30 billion of African rail projects planned or under way. Together, they span more than 11,000 kilometers (6,835 miles), enough to connect Cape Town to Copenhagen. It’s one of the bright spots on the world’s least developed continent, where governments are wrestling with drought-induced food shortages, weakened currencies and shrinking budgets following the plunge in commodity prices. Held Back “Infrastructure constraints are one of the major things holding back Africa and this standard-gauge railway will make a big difference,” said Mark Bohlund,...