Investment Opportunities

Overview

An overview of the socio-economic situation in the Lake Victoria Basin reveals significant potential in nearly all sectors of the economy. These potentials for investment are in diverse areas such as infrastructure, agriculture, tourism, human resources development, industry, mining, commerce, and services sector among others. An assessment of resource potential in the basin and the enabling environment in terms of the general policy and legal framework, obtaining in the Region, both within the Partner States and at the national level, indicates that there are numerous potentials for investment.

Currently, the basin boasts of a potential market of 84.1 million people within the East African Community and with strategic connection to other parts of Eastern and Central Africa. The intra- and interstate connectivity through road, rail, air and water makes the region ideal for investment in terms of strategic links with other parts of the world.

Agriculture

The Lake Victoria Basin is endowed with fertile soils ideal for a wide range of crops. It also falls within a good agro-climatic zone. The basin also enjoys surplus labour, both skilled and unskilled, and is strategically connected through all modes of transport to outside market. In terms of policy and legal framework, the three Partner States have each reviewed their regulations in favour of private sector investment, including the tax regime. The East African Community is also in the process of harmonizing the three policy/legal instruments to be conducive to the investors. These factors provide an appropriate environment for private investment in such potential areas as…

•    Intensification of crop and livestock production through improved technologies and inputs;

•    Provision of irrigation water works for crop and livestock production;

•    Strengthening existing marketing cooperatives and establishing new ones especially for the crops and livestock products;

•    Horticultural crop production using irrigation where necessary;

•    Irrigated and rain-fed rice production;

•    Production of hybrid seed suitable for the Lake Victoria Basin;

•    Establishment of fattening ranches and stalls feeding particularly in Transmara, Keiyo and Tanzanian part of the Basin;

•    Beekeeping and honey production;

•    Poultry and eggs production;

•    Milk production;

•    Provision of private extension service;

•    Pig production;

•    Fodder production;

•    Increased sugar cane growing;

•    Oil crops production; and

•    Cotton production.

Roads transport and infrastructure

The Basin has a total road network of 36,208 km of which 2,850 km is tarmac and the rest is earth. Due to high rainfall in the basin, maintenance cost of roads is relatively high especially with earth roads. The network links major urban centres but there is still a big potential in opening up new areas of economic importance including the beaches.

The policy status in all the three Partner States in respect of infrastructure development is in support of private sector investment. As in other strategic sectors, the East African Community is undertaking the harmonization of the policies and legal instruments in the infrastructure sector to attract more investment. The potential areas for private investment include…

•    Large-scale road and bridge construction and maintenance;

•    Road construction and maintenance (use of labour-based methods in district road works); Hiring out equipment for road construction and maintenance;

•    Encouraging women participation in the provision of road transport services; Development of integrated road transport with other modes linking with the neighbouring countries;

•    Capacity building and training in road technology; and Promoting of the establishment of road equipment maintenance and modification.

Railways

The railway transport is based on technology and infrastructure that has been in existence for a long period. This has partly been due to lack of innovative management techniques as a result of public sector involvement in the industry. The result has been lack of expansion of the systems, obsolete rolling stock, and rundown equipment.

The governments have noted this deteriorating state of the railway infrastructure and instituted policy reforms that have opened up the sector for private investment. The areas of focus include…

•    Rehabilitation, upgrading and maintenance of the railway tracks;

•    Modernisation and maintenance of the railway telecommunication system;

•    Modernisation and maintenance of the signaling equipment;

•    Maintenance of rolling stock;

•    Godowns and rail to door transportation business opportunities;

•    Integrating the railway infrastructure to capture more domestic and transit traffic by strengthening interchange and interface facilities; and

•    Development of local capacity participation in designing, investment, financing and provision of railway services and ancillary facilities.

Inland Water Transport

Lake Victoria provides a huge water mass for the inland water transport. The Lake is served with appropriate ports and piers with docking facilities and experienced service providers. With increased economic integration in the Community, the lake transport is expected to handle higher volumes of cargo and passengers; and with the liberalization of the sector, the following areas will increasingly require investment…

Building, operating and maintaining wagon vessels, ferries, boats, cruise ships and other means of water transport;

•    Investment in livestock transport to boost trade in livestock between the Partner States; Building and maintaining ports and landing beaches;

•    Involvement of private sector investors in the provision of ports, infrastructure and facilities;

•    Privatising ports' service to ensure full utilisation of the facilities;

•    Developing capacity in prevention and control of spills in the harbours and port areas; Provision of water safety measures;

•    Maintenance of navigational aids and other equipment including carrying out nautical cartography; and

•    Installation of signals and telecommunication network facilities across the Lake.

Telecommunication and Postal Services

The liberalization of telecommunication and postal services has attracted considerable investors in the three Partner States within the Lake Victoria Basin. However there is still a wide scope for coverage especially in the rural areas. Investment opportunities in communication services include…

•    Promotion and adoption of new and emerging information technologies in all forms of communication;

•    Operationalization of an electronic money transfer service in the regional and some district post offices, and money fax in the other areas;

•    Development of standards, new services and technologies within the industry;

•    Investment in mobile phones;

•    Maintenance of telecommunication equipment;

•    Investment in rental letterboxes;

•    Promotion of courier services;

•    Supply equipment and materials; and

•    Rental of telefax, e-mail services and other IT equipment.

Development of Energy

The three Partner States have their Energy Master Plans that comprehensively cover the Lake Victoria Basin. According to the Plans, there are massive opportunities in investing in the hydropower and alternative sources of energy. These include…

•    Energy production and supply including hydropower generation;

•    Supply of electricity from the national grid and those of neighboring East African countries;

•    Development of geothermal, solar, wind and biogas energy products;

•    Improved transport infrastructure to facilitate the distribution of petrol products; Investing in biomass technology;

•    Production of improved kilns for charcoal production; and

•    Production and sale of improved stoves and institutional stoves.