Ministers for Infrastructure of Rwanda and Tanzania yesterday met in Dar es Salaam, Tanzania, to consider implementation of the countries’ joint 521kilometre Isaka-Kigali Standard Gauge Railway (SGR) project which is estimated to cost $2.5 billion. Besides adoption of feasibility studies already conducted in the two countries, key outcomes also include an agreement to lay the foundation stone by October, and the two countries jointly mobilizing funds for construction of the joint project with each country meeting the cost of infrastructure in its own territory. A related joint communiqué indicates that James Musoni, Rwanda’s minister of infrastructure, was invited to visit Tanzania from Friday to Saturday, by his counterpart, Prof. MakameMbarwa, Tanzania’s minister of works, transport and communications. On Saturday, the two ministers held a meeting to arrange the implementation of the two countries’ Presidents given on January 14 that ministers responsible for transport in the two countries meet within two weeks to deliberate on how to implement construction of the joint railway line. “The Ministers meeting was preceded by the meeting of the Permanent Secretaries responsible for transport of the two countries and the Permanent Secretary of Finance and Planning of Tanzania,” reads part of the communiqué. “The Ministers reiterated their strong commitment to further strengthen the relationship for the mutual benefits of the two countries and their people and the prevailing commitment to realize the implementation of the Isaka-Kigali railway project and its significance to reduce transport cost, foster physical integration of transport modes, economic growth and improved social...

Penny Mordaunt has hailed the “incredible power of technology to deliver aid in new ways” on her first official visit to Kenya as International Development Secretary. During her visit, Ms Mordaunt saw how UK aid is supporting vulnerable communities in the north of the country devastated by East Africa’s drought. In Kenya’s capital Nairobi, Ms Mordaunt also heard how UK support for innovative programmes is helping to create jobs for a rising population. Ms Mordaunt was also in the country to hear from British businesses about how new technology has helped them tap into the Kenyan market. The UK is the fifth largest exporter of goods to Kenya and trade between the two countries is worth over £1 billion annually. Innovative technology, supported by DFID, is helping Kenya build resilience to climate challenges, including drought, and to build a modern economy for the future. During her visit the International Development Secretary: Saw how UK aid-supported research is helping to power low-cost insurance for livestock herders in drought-prone parts of Kenya. The research makes use of already existing satellite technology by NASA to provide images of vegetation cover. This ensures timely insurance pay-outs are made correctly and quickly if cover levels drop. DFID both backs the research and supports private sector insurers to provide it to local herders. Set out further UK aid support to the Hunger Safety Net Programme – an innovative cash-transfer scheme bringing together biometric technology and mobile money. This is helping more vulnerable households and supporting the...

Ugandan President Yoweri Museveni will tomorrow officially open the first session of the fourth East Africa Legislative Assembly. A programme seen by the Star yesterday indicates 54 EALA lawmakers from six East African Community member states were scheduled to arrive in Kampala, Uganda, yesterday. They will conduct House business until February 9. Museveni, who is the chairman of the Summit of East Africa Community Heads of State, will deliver the State of EAC Address in the House presided over by Speaker Martin Ngoga. On Monday next week, the MPs will debate motions before establishing and electing chairpersons of committees. They include Committee on Legal Rules and Privileges, Committee on Communication, Trade and Investment, Committee on Agriculture, Tourism and Natural Resources and Committee on Accounts. Others are Committee on Regional Affairs and Conflict Resolution and the Committee on General Purpose. After the election, the committees will start sittings. Chairman of the Kenya chapter at EALA Simon Mbugua yesterday told the Star they are looking forward to effectively representing the country in the second meeting of the Parliament’s first session. On February 7, the East African Monetary Institute Bill, 2017 and East African Community Statistic Bureau Bill, 2017 will be introduced in the House for first reading. The plenary will also debate Museveni’s address and on February 8, the East African Community Oaths Bill, 2017 will be introduced for its first reading. Source: The Star

The envisaged Standard Gauge Railway that will link the Tanzanian port of Dar es Salaam and Kigali is a game changer, the state minister for transport has said. “It is big in so many ways,” Jean de Dieu Uwihanganye told The New Times on Thursday. President Paul Kagame and his Tanzanian counterpart, John Pombe Magufuli, on Sunday, sealed a deal that will see the two countries undertake joint construction of a Standard Gauge Railway (SGR) from Isaka in northwestern Tanzania to Kigali. The development was announced during Kagame’s working visit to Dar-es-Salaam. Rwanda’s business community is excited about the development, with Deus Kayitakirwa, the Director of Advocacy at Private Sector Federation (PSF), saying that the railway line will “ease the challenges associated with the country’s landlocked status”. Both the government and business leaders say the Dar-Kigali SGR will significantly reduce the cost of transport between Kigali and the Tanzanian port and subsequently bring down the prices of imported products. According to President Magufuli, the two parties want construction works to start “immediately” because feasibility studies and designs are complete. The two leaders went ahead to instruct their Infrastructure ministers to meet within two weeks to plan the implementation of the project. Minister Uwihanganye said negotiations between the two parties are already in advanced stages. “This is a project to which we attach great importance. Once it is in place, it (SGR) will be a game changer. And that is why we are doing everything possible to have it in place...

EAC partner states have been accused of being slow in disbursing their financial commitments, which calls for tough measures regarding financing activities of the Community. “The reality of the matter is that partner states are slow in disbursing their commitments, as at the end of December (2017) only 40% had been disbursed, this calls for serious prioritising of the available resources and ensure critical activities are implemented,” the Secretary General of the East African Community (EAC), Amb. Liberat Mfumukeko said. He emphasised the need for staff of the Community to avoid wastage at all costs saying “tough times call for tough measures.” One of the cost cutting measures he cited is that meetings should start on Tuesdays and should not last for more than four days. “This summit will be addressing the issue of alternative financing mechanisms and I can assure you that a lasting solution will be found,” the Secretary General said in his first address to staff, according to the statement posted  yesterday (Wednesday). In his address highlighting achievements for 2017 and what still needs to be done Mfumukeko said, “I must admit that 2017 was a challenging year for all of us at EAC, and especially the first and second quarters of financial year 2017/18 where we experienced serious financial challenges.” He thanked the staff for bearing and coping with these challenges. He said he was touched that staff could use their own resources to travel and support EAC activities for reimbursement when funds become available. “This...

The East African Legislative Assembly (EALA) is scheduled to resume business next week by holding its Plenary Session in Kampala, Uganda. The Plenary from January 22nd 2018, through to February 9, 2018, is the second meeting of the First Session of the 4th Assembly. President Yoweri Museveni who is the chair of the Summit of EAC Heads of State, is expected to deliver the State of EAC Address to the Assembly. The State of EAC Address is an annual address delivered by the sitting EAC Summit Chair and it sets the momentum and impetus for the integration process by reflecting on general policies that relate to the Community's progress while outlining the strategic challenges which require attention. The assembly which is to be presided by the new Speaker Martin Ngoga shall during the three-week period further discuss several legislative business including: Debate three key Bills; the EAC Oaths Bill, 2017, the EAC Statistics Bureau Bill, 2017 and the EAC Monetary Institute Bill, 2017.  Source: All Africa

Economic growth in Africa picked up steam last year and is set to accelerate strongly in 2018, but “massive investments” are needed in infrastructure, the African Development Bank (ADB) said Wednesday. Growth in Africa rose from 2.2 percent in 2016 to 3.6 percent in 2017 and is likely to rise to 4.1 percent in 2018 and 2019, the ADB said in its annual report, African Economic Outlook. “Overall, the recovery in growth has been faster than envisaged, especially among non-resource–intensive economies, underscoring Africa’s resilience,” it said. “The recovery in growth could mark a turning point in net commodity-exporting countries,” it added. Last year’s spurt has a range of explanations, including a recovery in prices for oil, which helped petroleum exporter Nigeria, Africa’s most populous country. East Africa is the most dynamic region in terms of growth: 4.9 percent in 2016, which rose to 5.6 percent in 2017, and to a projected 5.9 percent in 2018 and 6.1 percent in 2019. However, across the continent job creation did not rise in lockstep with growth, lagging by 1.4 percent. Woman and young people, aged 15-25, are those who have been most affected by the slow growth in employment. To generate jobs for the 12 million young people entering its workforce each year, Africa must take a fast-track to industrialisation, the ADB said. But key obstacles in infrastructure remain, including energy, water and transport, as well as health, education, security and administrative capacity. “The continent’s infrastructure needs amount to $130–170 billion (106-139 billion...

Investment in Africa is big business and the list of major corporations funding projects across the continent is rapidly growing. From the Chinese construction and engineering firms pushing infrastructural development to the biggest names in technology driving innovation, there’s serious money to be made for everyone involved. Aside from the African partners getting their cut from these lucrative deals, this investment boom is powering rapid development across Africa. the continent is rising fast and the short-term gains can be seen on a daily basis. As the World Economic Forum puts it: “2018 is going to be a good year for sub Saharan Africa’s economies” with a growth forecast of 3.2%, up from 2.4% in 2017. However, rapid development comes with compromises – ones that many are too busy counting the quick cash to see, or perhaps care about. At the 2018 World Economic Forum Annual Meeting, Chief Executive Officer for Brand South Africa, Kingsley Makhubela, highlighted the long-term issue of Africa becoming overreliant on external trade, rather than focusing on developing intra-African trade: “This is especially dangerous for Africa given its growing integration with the global economy in recent years. In order to mitigate this, Africa must take steps to secure its own share of global economic growth.” The threat is very real, too. Developed nations are enjoying the African boom, making the most of the continent’s investment opportunities, trade dependencies, innovations and loan interest payments – not to mention the natural resources and professional talent that escapes along the way. The problem is there are gaping holes in this...

Tanzania and Rwanda have agreed to commence work this year on the Isaka-Kigali standard gauge railway project in a development that now puts the proposed Mombasa-Kigali standard gauge railway plan in limbo. The 400-kilometre railway is aimed at connecting the landlocked Rwanda to the port of Dar es Salaam to ease movement of cargo between the two countries. The agreement was disclosed on Sunday after a meeting between Tanzanian President John Magufuli and his Rwandan counterpart Paul Kagame who was in Dar es Salaam for a one-day state visit. “We want foreign ministers from the two countries to meet next week to chart out the financing model. Construction [should] start immediately because the feasibility studies and all other preparations are complete,” said President Magufuli. “President Kagame and I want to unveil the foundation stone to usher the construction this year,” he added. “[We] are ready to look for loans to speed up the construction,” President Magufuli said. Tanzania has already started work in two phases on a railway line from Dar es Salaam to Morogoro spanning 330 kilometres, and from Morogoro to Makutupora in Dodoma covering 426 kilometres, using locally sourced funds totalling about Sh325 billion ($3.15 billion), according to President Magufuli. Rwanda was originally part of a 1,500-kilometre railway running from Mombasa to Kigali through Kampala but the country later abandoned the plan, although no official statement has been made about the changes. In May 2016, Rwandan Minister for Finance and Economic Planning Claver Gatete was quoted by Kenyan media as...

Several businesses in the East African Community region stand a chance to win awards at the inaugural East African Business Council (EABC), inaugural Business Excellence Awards. EABC is an apex body of business associations of the private sector and corporates from the six East African Community partner states. The awards were organised as part of events marking its 20th anniversary. November 2017 marked 20 years since the establishment of the EABC and its Secretariat has outlined a number of activities and events. According to the EABC Executive Director, Lilian Awinja, the awards are aimed at showcasing and celebrating businesses that have achieved excellence in various aspects of their operations across East Africa, keeping with the spirit of the EAC integration. She said: “The business sector is a driving force in East Africa’s economy through the creation of jobs and opportunities that enable citizens to earn a living and thrive as well as being a major player in the integration process.” “The idea to host these awards was thus born out of the need for a platform upon which the Council will honour businesses that have achieved success through their vision, operations and business ethics.” Award categories The inaugural EABC Business Excellence Awards will be organised across three categories, the first will recognize one company as Overall East African Regional Company. The second category will recognise business that excelled in cross cutting categories, namely manufacturing, services, SME, woman owned enterprises, green economy, innovation and corporate social responsibility. The third category will...