EABC Eyes Northern Corridor Investment Opportunities




Northern Corridor Map

By ADAM IHUCHA
The East African Business Council (EABC) has commissioned a study to identify the investments opportunities for private sector to unlock economic potential along the northern corridor.

The northern corridor is the transport corridor linking the Great Lakes countries of Burundi, D. R. Congo, Rwanda and Uganda to the Kenyan seaport of Mombasa on the Indian Ocean coast.

Lilian Awinja, the Chief Executive Officer for the EABC says that the lobby wants to ascertain the specific projects where the private sector can profitably invest along the corridor.

Ms Awinja says that in order for the private sector to fully take advantage of the opportunities under the Northern Corridor Projects Implementation (NCIP), it was imperative for them to have clear information.

“Our study would come up with report on the opportunities, the magnitude of the projects, available incentives in the different countries and under the NCIP initiative, the cost of the projects among other issues within the itemized investment areas” she explains.

The study is expected to establish a number of warehouses needed along the standard gauge railway (SGR) from Mombasa to Kigali and Juba, and the cost implication.
It would also identify the quantities of materials needed for the construction of the railway and the cost of each material.

On refined petroleum products pipeline extension- Eldoret-Kampala-Kigali---the study would pinpoint the opportunities suitable for public-private-partnership concept (PPP).

“The study should identify what is needed and in what quantities and what cost, for instance, for PPP what should be the private sector contribution” Ms Awinja notes.

It should also identify the gaps, challenges, obstacles, barriers to private sector taking up the investment opportunities if any including cross border impediments and suggest recommendations on how these may be resolved.

In the 9th Summit of the Northern Corridor, which took place in March 2015 in Kigali, Rwanda, the Heads of State requested EABC to coordinate and ensure that the private sector participates and takes full advantage of the northern corridor integration projects and the accruing benefits from this initiative.

During the 10th Summit held in June 2015 in Kampala, Uganda, the Heads of State further requested the private sector to identify the investment projects that they could take up as public private partnerships or as private sector projects.

 The summit highlighted opportunity areas including oil pipeline and refinery, standard gauge railway (SGR), telecommunication networks and charges.

Others were broadband strategy, roads, regional data centres, electrification, automation of immigration processes, establishing commodity exchange platform and Internet connectivity.

The northern corridor also serves northern Tanzania, South Sudan and Ethiopia.

It is the busiest corridor in East and Central Africa handling about 12 million tons of import/export cargo of the stated countries.

The corridor also handles a substantial volume of intra-regional trade. Studies however show that the economic potential of the region is yet to be fully unlocked.

It is envisaged that infrastructural inter-connectivity in the corridor would lead to reduced cost of production and increased business and trading opportunities that could become an ingredient for creation of wealth and the reduction of poverty in the region.

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