Infrastructure

The state of the infrastructure has a direct contribution to the cost of doing business and competitiveness of firms regionally and internationally. In recognition of this, the EAC and Partner States governments have undertaken several joint projects to address the poor state of the infrastructure, in the following areas:

• In the Energy Sector, which is characterised by very high energy prices, insufficient and unreliable supply of power and very low rates of electrification, the EAC is seeking, through the East African Power Master Plan, to improve the power situation by having a fully integrated power sector. (Read more...) 
• Road Transport: During the Strategic Retreat of the East African Community Ministers in April 2008, it was reported that 52% of the region’s road network is in poor condition, with poor maintenance and poor level of service. This increases the operating costs of business due to long transit times and long turn-around times, frequent need for repairs and lengthy clearance procedures among others. (Read More...) 
• Air Transport: The EAC region has 9 international airports – 3 in Kenya, 3 in Tanzania and 1 each in Burundi, Rwanda and Uganda and several regional and local airstrips. Under CASSOA, an institution of the EAC, there is joint effort to.......  
• Ports: The region has 2 ports – in Dar es Salaam, run by the Tanzania Port Authority and Mombasa – run by the Kenya Ports Authority (KPA). Although both ports experience problems such as delays and congestion, both are committed to improved service and have incorporated a 24 hour / 7 days a week service delivery. In addition, there are plans to have more terminal facilities, carry out modernisation in terms of computerising of the container handling systems, improve documentation and cargo clearance, cargo verification and scanning, among others. (Read more)
• Communication: - has improved especially with the advent of mobile telephony, with over 25 million users regionally. Internet usage has also improved, as has broadband connectivity. There are also joint efforts to improve the region’s connectivity with the rest of the world through initiatives like the Eastern Africa Submarine Cable System (EASSy) which seeks to connect eastern Africa via high bandwidth fibre optic cable.
• Railway: The current railway systems (Kenya Railways / Rift Valley Consortium, Tanzania Railways / Tazara) are antiquated and are over 100 years old. In addition, there is no urban rail and no significant new/efficient inter-urban rail. However, there has been effort to improve the railway systems, with the partial privatisation of the Kenya-Uganda rail (joint) and the Tanzania railway. Already, Tazara has carried out some improvement on the system and made some expansion. 

There is need to consistently and speedily address infrastructure constraints given their contribution to business competitiveness. EABC has been vocal in lobbying for the following:

• That a timetable of implementing the planned developments be agreed, for both medium and long term plans; with measurable deliverables along the process. 
• That a clear framework for participation of Private Sector in infrastructure development, which clearly spells out the respective roles of the public and private sector and establishes an adequate regulatory mechanism to manage PPP investments efficiently, should be established and mainstreamed in all infrastructure plans.