The Kenya Ports Authority (http://www.kpa.co.ke) claims that it has a vision to provide ‘World class seaports of choice’, a noble and seemingly lofty ambition. On the strength of recent feedback from HABA clients using the Port of Mombasa it would appear that in the case of Kenya’s premier port it is evident that the KPA has a lot more work to do. Complaints are legion, with the three most common words used to describe the response to poor service and delays being; “arrogance”, “complacency” and “indifference”. Makhtar Diop, the World Bank Vice-President for Africa on a recent visit to Mombasa has also voiced his concerns over inefficiencies, so it is clear that the problem is a serious one. The parlous situation at the Port of Mombasa mirrors that of its great rival the Port of Dar es Salaam, with both of these Kenyan and Tanzanian strategic gateway ports have become synonymous with poor management, inexplicable delays, high port charges, theft and corruption. Landlocked countries such as Burundi, Rwanda and Uganda are also beginning to express their dissatisfaction, with Ugandan MPs claiming that the port’s inefficiencies are forcing their country’s business costs. Matters have not been helped by the fact that the National Government has viewed the Port of Mombasa as little more than a milch cow. Years of underinvestment and the sticky fingers of politicians have meant that a port with enormous potential has consistently fallen short of expectations. Growing international interest in East Africa and adjacent regions has begun to encourage serious exploration of alternatives and this has acted as something of a wake-up call. It would be churlish to deny that there has been some attempt to address matters. A new cargo berth is being constructed by the China Roads and Bridge Corporation, whilst a Dutch company, Van Oord Dredging and Marine Contractors have carried out vital dredging work at the Kalindini channel. The Japanese funded Mombasa Port Area Roads Development Project otherwise known as the Dongo Kundu Bypass will also go some way to alleviating the traffic bottlenecks that have blighted Mombasa and its environs. Many would like to see the port privatised, but there are legitimate concerns locally that this could have an adverse impact on employment prospects. The dynamic local Governor, Hon. Hassan Ali Joho (http://www.hassanjoho.com) is well aware that maintaining the status quo is not an option. In this regard he has recently been in Malaysia meeting potential investors with a view to the development of a free port project that could see Mombasa emulating Port Klang, the largest port in Malaysia. By all accounts interest has been considerable and a sizeable delegation is due to visit Kenya in a few weeks time.

Mombasa is eager to ensure that the port works effectively, and to ensure that a reasonable share of income generated stays in the region. Kenya’s second city has its own traditions and in many ways a quite different outlook and feel to Nairobi. Rather less frenetic and seemingly more ethnically diverse than the Kenyan capital, Mombasa takes a degree of pride in being different. The Swahili language predominates, as does a more relaxed coastal manner. Business visitors and tourists alike soon sense that here is a place that enjoys its languor and feels that it has little need to prove itself. Upon arrival one soon discovers that the traffic management system (if one exists) is chaotic and many of the buildings appear shabby and neglected. As in many cities in East Africa appearances can be deceptive, a spirit of commerce abounds and there is ample evidence of some substantial investments being made across a variety of sectors, a good example being English Point Marina (http://www.englishpointmarina.com). Mombasa is increasingly becoming an industrial city, one that is eager to capitalise on East Africa’s projected oil boom. Mombasans seem at ease and genial as befits their tropical coastal climate. They are proud to live in a city relatively free of the periodic violence and the sprawling shanty towns that blight Nairobi. That said, the city has its own challenges, street crime does exist, often fuelled by the scourge of youth unemployment, in addition it has its own secessionist movement in its midst in the form of the Mombasa Republican Council. Kenya’s distinctly patchy record when it comes to serious and sustained investment in the regions does not exactly inspire confidence. That said, Mombasa knows that if it is to continue to prosper and enjoy a degree of local autonomy it needs a thriving and efficient port, something that will go a significant way to helping stimulate and drive local as well as national economic development.

For further information visit:

http://blogs.worldbank.org/africacan/why-kenya-needs-a-world-class-port-in-mombasa

http://www.vanoord.com/activities/port-mombasa

http://www.marinetraffic.com/ais/portdetails.aspx?port_id=1628

http://sahanjournal.com/kenya-must-engage-with-mrc

It invariably comes as a surprise to many people to discover that approximately 17% of Uganda’s territory is made up of lakes. Lakes Victoria, Albert, Edward, Kyoga etc. support thriving fishing communities which in common with other sectors are under various pressures caused by the demands of a rapidly expanding population. Whilst there is considerable scope for aquaculture, fish processing and the supply of dried/smoked fish for local and regional markets the issue of the diminution of fish stocks is causing concern. In Lake Victoria the three countries that border the Lake (Kenya, Tanzania and Uganda) are endeavouring to co-ordinate efforts to address the problem of illegal nets (net size is a serious issue) catching of immature tilapia and other species. Over the last decade alone the number of Nile Perch in Lake Victoria is believed to have declined by two-thirds from 750,000 tons to 250,000 tons. It has been estimated that 1,800 fishermen operate around the Lake and so the need for sustainable fishing initiatives is paramount.

Whilst urbanisation is growing apace still some 85% of Ugandans live in rural areas, with agriculture employing 68% of the population (in the case of women that figure is nearer 83%). The principal cash-crops produced are: coffee, cotton, sugar cane, tea and tobacco. Coffee and tea production primarily takes place in the environs of Fort Portal and to the west of Mt Elgon. The Uganda Coffee Development Authority (http://www.ugandacoffee.org) has been relatively successful in helping developing the Ugandan coffee brand, but tea from Uganda has been less effectively marketed, with the vast majority of it being transported to the Mombassa Tea Auctions where it is invariably sold off as ‘Kenyan tea’. The cotton-belt is largely situated above Lake Kyoga and stretches diagonally from Gulu to Soroti. Sadly, much of the cotton production that once took place in the vicinity of Kampala and Lugazi has disappeared due to the urban and peri-urban expansion. Some cotton and tobacco growing still takes place in the region of Arua and the Albert Nile.

Generally Uganda offers considerable potential for farming with 60-70% of agricultural land being suitable for a wide range of crops including: bananas, various beans, cassava, maize and sorghum. Meat and meat products are seen as a profitable sector, even in the arid region of Karamoja in the north-east cattle grazing is commonplace, along with the production of groundnuts, sesame and some millet. Beef and dairy cattle, goats, pigs and poultry are all areas for possible investment, as are related sectors such as animal feed, abattoirs and skins and hides. Dairy and dairy products are another area that looks set for expansion in the coming years with opportunities for those engaged in the production of UHT milk, powdered milk, butter, cheese, cream, ghee and ice-cream. Companies operating in Uganda are well placed to access the EAC, COMESA, as well as the EU and AGOA. Whilst much of the country’s agriculture remains subsistence in nature, it is interesting to see crops as diverse as lablab beans and the Irish potato being grown even in the more remote regions such as Kabale District. The Kachwekano Zonal Agricultural Research and Development Institute (http://www.kazardi.go.ug) and similar centres of excellent and innovation are eager to help Uganda meet its food needs as well as be in a position to export to countries such as D.R. Congo and Rwanda.

For all the optimism and potential, there remain serious challenges that cannot be ignored. Already Uganda’s forests are coming under increasing pressure, as is an infrastructure that has suffered from years of neglect. Issues around skill shortages, packaging, warehousing and general supply chain and transportation costs remain a headache for small and large scale investors alike. Yet for all the reservations, HABA feels confident that Uganda will continue to be a location worthy of serious investment for the foreseeable future.

For further information visit:

http://www.agra.org

http://www.agriculture.go.ug

http://www.bbc.co.uk/news/world-africa-21051226

http://www.naro.go.ug

To seasoned observers of business activity across Africa’s 54 countries the latest ‘Scramble for Africa’ has been viewed with a degree of scepticism. Some rather jaundiced commentators claim that it is yet another false dawn, whilst other Jeremiahs seem intent on highlighting a litany of past failings to anyone who will listen. As in most things, the picture is invariably far more complex than scribblers and 40 second pundits are prepared to acknowledge. English speaking correspondents and journalists tend to demonstrate a bias towards Anglophone countries with a disproportionate number of articles and features covering the likes of Ghana, Kenya, Nigeria and South Africa. Areas such as the Maghreb, as well as much of Francophone and Lusophone Africa are often overlooked, whilst some countries can go months and even years without being written about. To those who are frequent visitors to the continent, there is a palpable sense that things are changing, but there still remains considerable uncertainty and thus many investors remain rightly cautious.

The HABA region, with a population fast nudging 300 million is in many ways typical of the confusing picture. An area that has been bedevilled by negative headlines for years, it is slowly beginning to emerge as a strategic gateway into Central and Sub-Saharan Africa. To both the foreign and local investor alike there are a number of challenges that impede and frustrate commercial activity and these are ignored at your peril. It is worth exploring some of the most commonly cited difficulties:

1) Ministerial Absenteeism – This is a perennial complaint, one that looks set to increase in the coming years. Government ministers and their ‘advisors’ seem to delight in more and more overseas trips and this is resulting in a paralysis in key ministries. The fact that many countries lack an efficient Civil Service exacerbates the problem still further. Matters are made worse by the fact that many ministers view a ministry as their own personal fiefdom and seem intent on filling them with relatives and their cronies.

2) Working hours – Government offices are often closed or appear to operate timetables designed to frustrate those they are meant to serve. A considerable amount of time is wasted in the quest to speak with the right officials or to submit and collect relevant paperwork. E-mails (if they exist) often go unanswered and calls go unreturned. In the words of one HABA client; “at times it appears as if the entire government and commercial sector is on a permanent siesta”.

3) Corruption – Whilst there are wide regional variations, there is no escaping the fact that bribery, inducements, sweeteners and tokens of appreciation are an issue that cannot be ignored. Whether it be the prompt clearance of goods at port, or ensuring documentation is correctly processed and stamped by the umpteenth official greasing the palm is a daily phenomenon that for some is just part of everyday living. British Citizens need to be doubly aware of the dangers of succumbing to such activity as the Bribery Act (2010) has a global reach.

4) Inadequate Infrastructure – Dire roads, the lack of modern railways, inefficient ports and woeful traffic management systems are a headache for locals and foreigners alike. Delays are frequent and the cost of the transportation of goods is often prohibitively expensive. There is precious little evidence of any concerted attempt to ensure efficient connectivity with the regions and as a consequence capital cities become ever more congested. Electricity supply is often fitful and this hampers both the establishment and development of light and heavy industry. When new infrastructure is put in place, it is often done on the cheap and with scant regard to local demographic and climatic conditions and as a consequence is soon little better than what if anything was there previously.

5) Weak numeracy levels – Whilst access to primary education has expanded considerably in recent decades, those that have access to some form of secondary education often leave without the relevant knowledge and skill sets required by the world of work. The teaching of mathematics is particularly poor and this results in many students not pursuing the maths and sciences if they enter tertiary education. Both local and foreign businesses require a highly literate and numerate workforce, but there is a growing body of evidence to suggest that sectors such as the hydrocarbon industry and financial services are having real problems recruiting employees that match their requirements.

6) Absence of accurate data – Making an investment of any sought entails an element of risk and yet the risk factor is likely to be considerably higher when there is a lack of accurate data on which to make calculations, plans and projections. Regional governments have barely begun to grasp the importance of data collection and the importance of independent verification mechanisms that help foster trust. What is supplied, often done so reluctantly, is invariably out of date, incomplete and inaccurate.

For all the challenges economic growth is taking place and there are signs of new start-up activity as well as a marked increase in the willingness of foreign companies to take the plunge. The arrival of fibre optic cables has proved a considerable spur and greater access to the internet is enabling the HABA region to become exposed to the opportunities and commercial practices of others. The leaden hand of bureaucracy and state protectionism continues to stifle enterprise, but some of the more enlightened governments have woken up to the need to throw open the windows and welcome in the winds of change. Those ministries that have for so long been trapped in a particular ideological mindset are beginning to be liberated and this gives cause for hope. It is equally true that foreign investors have to free themselves from the Band-Aid time-warp that still views that Horn of Africa and adjacent regions as if it were 1985. Opportunity and potential abounds. It is certainly time to explore and see the situation for ourselves. We at HABA know that it will at times be maddeningly frustrating, but one thing is for certain, and that is that many investors will end up asking why on earth they had not engaged in the region earlier.

Whilst hydrocarbons continue to generate column inches in the business pages, other sectors are beginning to attract attention from foreign investors. Cotton growing and its attendant industries looks set to undergo a quiet renaissance, one that means that that region looks set to increase its global market share. Climatic conditions are such that cotton has long been a feature of the economies of Ethiopia, Kenya, Somalia and Eritrea. Cotton was said to be Somalia’s first ever export crop during the Colonial era, whilst in Ethiopia, shema ( a traditional hand spun and woven cotton) is ubiquitous throughout much of the country (http://ethiopiancotton.org). With a burgeoning African middle class there is increased demand for apparel and with wage costs generally low across the HABA region, cotton offers considerable potential and the promise of both local and international sales. The cotton trade internationally is demonstrating a healthy demand for organic cotton (cotton that is grown without synthetic pesticides) and there is no reason why parts of East Africa could not fulfill some of this demand.

So what are the challenges faced for those considering embracing King Cotton in the HABA region? Well in common with other sectors there is a real need for greater co-ordination, pest control is an issue hence the dilemma surrounding the use of pesticides, historic under investment in machinery especially ginneries (cotton mills) and in training and capacity building are also factors. Factory structures such as they exist have often been built with inadequate ventilation and little of no thought of international health and safety standards with regards to minimising the risk of byssinosis (an occupational lung disease caused by exposure to and inhalation of cotton dust and fibres). Inadequate infrastrure and bureacracy are also common complaints regardless of one’s area of endeavour. That said, there is real potential and with the likes of the United States African Growth and Opportunity Act (AGOA) affording duty-free and quota-free treatment for eligible apparel articles and sundry products (See: http://www.competeafrica.org) market access is often better than many people might think. Currently Turkish, Indian and Chinese investors appear to be in the vanguard when it comes to exploring possibilities. Who knows, maybe in the near future we will see Balcaad (Bal’ad) in the Lower Shabelle, Somalia (some 22 miles north of Mogadishu) returning to its former glory as a regional centre for the production of cotton cloth. One thing HABA is certain of,and that is that it will be the private sector that will be cotton’s champion. Much to remains to be done, but for those prepared to see them, the signs of development and expansion are there.

For further information visit:

http://ciad.org.uk

http://www.cottonafrica.com/textileeastafrica.php

http://www.delmas.com/products-and-services/african-export.asp

http://www.panna.org/resources/cotton

‘The lack of infrastucture’ is a familiar refrain for many of those unwilling to invest and engage in the HABA region. To those who take the trouble to visit, this story is beginning to change, but the picture remains a complex one. Years of regional conflict and neglect have ensured that the Horn of Africa and adjacent regions has some of the poorest roads in Africa. Now there is a realisation in national governments that if potential is to be unlocked the infrastructure challenge has to be met head on and this means serious investment. To many China has arrived with a seemingly tailor made solution, not only offering the technical knowhow, but also the finance to initiate such capital projects, a powerful combination that few governments find able to resist. Whilst in theory the building of new roads or the patching up existing ones is good for local connectivity and thus development, there are a multiplicity of factors that need to be examined and scrutinised with care if problems are not going to be stored up for the future. Already there are signs of recent projects demonstrating poor design and friability within months of being constructed.

To date no government has had the courage or foresight to establish an online cadastral survey, one that makes clear who owns what land and has the added potential to also feature valuable data concerning mineral and hydrocarbon assets and licences. Central governments the world over have a habit of commissioning road building projects with scant consultation with local communities and then are surprised and indignant when plans rather than being welcomed are greeted with hostility. Already urban centres across the HABA region are fast losing what little green space that exists and peri-urban areas are being blighted by constant encroachment and despoilation. Compensation schemes and judicial protection are inadequate, with the legal process all too often weighted in favour of the goverment. Anyone familiar with the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor (LAPSSET) project will be aware of how little effort is made to carry out genuine environmental impact surveys. National interest, such as it is invariably trumps local concerns every time. There are of course other matters to be considered, such as the effect of the extremes of temperature and the managing of water runoff. Sadly, a number of the new roads being constructed have inadequate substructures to deal with rain water and those being built in urban areas rarely are built with sewage management systems in mind. HABA has anecdotal evidence that poor quality gravel and inferior bitumen is often being used and this further increases the likelihood of increased wear and tear. Traffic usage on new roads is extremely heavy and set to grow enormously and yet on-going maintenance is rarely factored into the costs, nor are proper safety proceedures with a view to minimising the number of accidents and fatalities on the roads. For a region so well suited to solar lighting, it is regrettable that solar solutions rarely if ever feature. The region desperately needs improved connectivity, especially to regional centres, but it also requires a greater degree of joined up planning and thinking that has long term solutions in mind.

For further information visit:

http://www.infrastructureafrica.org

http://transport-links.org/transport_links/filearea/documentstore/Draft%20Gravel%20Guidelines.pdf

http://www.savelamu.org

As many international companies start to reassess their view of possible business opportunities throughout Africa the Horn of Africa Business Association (HABA) is pleased to report increased commercial activity in the Horn of Africa. A rash of regional developments from the extension of fibre optic connectivity and broadband thanks to the likes of Somcable (www.somcable.com) to the generating of renewable energy by Reykavik Geothermal (www.rg.is) in Ethiopia are helping Africa’s terra incognito to be viewed anew. Recent developments such as the opening of a make-shift British Embassy in Mogadishu, with the Netherlands and EU set to follow suit is indicative of a return to a degree of normality that will help foster further commercial activity.

“Perception and misconception play a very large part in business confidence and it is encouraging that international and Diaspora businesses are eager to learn more about the region and its opportunities. HABA is delighted to see the British Foreign & Commonwealth Office (FCO) in conjunction with the Department for International (DFID) organising a Somali Business & Investment event in London (8/5/2013). This is a positive initiative that we whole heartedly support and are happy to be part of. Anything that allows foreign investors and the Diaspora to have a better understanding of the real situation on ground has to be a good thing.” – Mohamed Ali, Operations Director, HABA.

HABA (www.ha-ba.com) as a non-political organisation is committed to helping others realise the enormous economic potential of the region and works assiduously to address the current knowledge deficit.

“Reliable economic data is often in short supply, so as in all business activity there is always a degree of risk. We urge companies large and small to endeavour to do their due diligence and constantly work to be culturally sensitive and pragmatic in approach. The Horn is a fascinating region, ripe with potential, with a near unrivalled strategic location. From Berbera to Omdurman there is a wealth of commercial activity that belies the myth that this part of Africa is poor. If you take the HABA region as a whole it is a massive market with approximately 300 million people and rising. Yes there are difficulties, but with our own regional market and sector intelligence HABA’s view of things is one of grounded optimism.” – Mark T Jones, Executive Director, HABA.

HABA is proud to have been at the forefront of highlighting opportunities in the field of hydro-carbons, but also believes that there is even greater potential in the area of renewable energy, particularly solar. In the coming years it sees a number of sectors proving particularly attractive to both local and foreign investors:

·Agriculture and agro-processing

·Construction and Real Estate

·Fisheries

·Livestock

·Transport & Logistics

All of these sectors should go some way to alleviating the greatest of the region’s challenges, that of youth unemployment. HABA believes that with a continued spirit of pragmatism, co-operation and mutual respect attitudes towards the region will continue to change for the better.

HABA works in the following countries: Djibouti, Eritrea, Ethiopia, Somalia and Somaliland (The Horn of Africa), Kenya, South Sudan, Sudan, and Uganda (The Greater Horn) as well as forging further business links being forged with Burundi, Rwanda and Tanzania.

For further details visit the HABA website (www.ha-ba.com) or contact:

PRESS RELEASE

Issued 28th April 2013

Potential is a marvellous thing, but sadly it is not always realised. For all the current hype surrounding the possibilities for economic development in East Africa, one of the greatest challenges remains access to affordable and reliable sources of electricity. Anyone familiar with the woeful performance of the likes of the Tanzanian Electricity Supply Company (http://www.tanesco.co.tz/) knows full well that in certain countries the situation is likely to get worse before it gets better. Years of under investment, neglect of the regions, poor infrastructure, ineffective leadership, corruption and a lack of empathy and political will have combined to create a problem that at times has looked near insurmountable. As in Nigeria, many of the elite have been quite content to have their own diesel generators and as a result have spared little thought for others or for the detrimental effect that power cuts and a spasmodic electricity supply has had on economic development. Recent major oil and gas discoveries may be seen as a boom by various regional central governments, but with the sums of foreign capital being invested the demands and requirements for reliable electricity become ever more pressing. HABA is not alone in believing that help may finally be at hand in the form of various renewable forms of energy, namely solar power and geo-thermal.

Whilst hydrocarbons have tended to receive the media coverage, geo-thermal projects in particular are being discussed with increasing intensity. Kenya looks set to be the main beneficiary, with experts having calculated that the country has the potential to generate between 7,000 – 10,000 MW of electricity. Much of the Great Rift Valley appears to present ideal conditions, and there is already optimistic talk in Kenyan Government circles of geo-thermal generating half of the country’s energy needs by the end of the decade. Agil (http://www.africa-geothermal.com) and Ormat Technologies, Inc (http://www.ormat.com) are both operating successfully in the region south of Lake Naivasha, with the Kenya Electricity Generating Company (http://www.kengen.co.ke/) eager to see similar initiatives. Elsewhere from Rwanda to the Comoros Island there are signs of exploration and expansion with regard to geo-thermal energy. In the summer of 2012 China’s Sinopec (http://www.sinopecgroup.com) and the Government of Djibouti signed a Geothermal Resource Cooperation Framework Agreement, whilst Iceland’s Reykavik Geothermal (http://www.rg.is) has invested in geo-thermal plants in Ethiopia and Rwanda. The African Development Bank (http://www.afdb.org) has committed itself to providing assistance funding for similar projects throughout the region. Germany, as befits a country with a strong commitment to renewals, has been particularly active and has been instrumental in helping establish the Geothermal Risk Mitigation Facility for East Africa (http://www.grmf-eastafrica.org).

HABA recognises that for all the investment and grounds for optimism a raft of challenges remain, of which the following are just a few:

• Competing priorities in the energy sector, especially from oil and gas

• Insufficient pricing support

• The remote location of the majority of geothermal plants

• Limited availability of both human and technical resources

• Inadequate regulatory framework, particularly in regards to mining and concession rights

Issues to do with land ownership and land seizures have been such that concerns have already been raised by the International Institute for Environmental Development (http://www.iied.org). One thing is for certain, and that is that the Horn and East Africa cannot ignore the power paralysis, and it would appear that geo-thermal and solar energy may well provide a lasting solution to what has been a perennial problem.

To the wider world and much of the West in particular the image of Ethiopia seems stuck in a Band Aid Time time-warp. It is as if the clock had stopped in 1985, an era of partial drought, famine, harrowing news footage and the indignation of international pop stars. Mengistu Haile Mariam and the Derg have long since gone (with the former living in luxurious exile in Zimbabwe). The era of transformation under the late Meles Zenawi witnessed both an ideological and economic step change that has seen Ethiopia assume a role of regional and pan-African leadership not seen since the formation of Organisation of African Union (OAU) during the reign of Emperor Haile Selassie.

As Africa’s second most populous nation, Ethiopia recognizes the need to ensure a greater internal and external connectivity. This quest for greater connectivity has galvanised a variety of sectors. In aviation Ethiopian Airlines has worked hard to become a major continental player in recent years, but it is on the ground that the bulk of activity has begun to manifest itself, primarily in a whole raft of construction projects. State investment in roads, dams, centres of education and low cost housing is currently driving a construction boom. Agencies such as the Ethiopian Road and Transport Authority (http://www.rta.gov.et) are wrestling with the increasing traffic in Addis Ababa, as well as overseeing arterial roads and highways to connect the interior. Considerable energy and resources is being directed to opening up new road and rail links to Ethiopia’s neighbours, this being a particular preoccupation at present as currently 98% of the country’s international trade passes through Djibouti. This over reliance on Djibouti has resulted in the exploration of other options including Port Sudan, Berbera and Lamu, the later in the form of the Lamu Portand Lamu Southern Sudan-Ethiopia Transport Corridor (LAPSSET) being by far the most ambitious of regional infrastructure projects. Projects such as Addis Ababa – Adama Expressway and the construction of 100km-long road, stretching from Asosa to Kormuk are stimulating trade and fuelling the demand for key commodities such as cement.

In common with the majority of its neighbours, Ethiopia has turned to the Chinese to carry out the lion share of its road and rail projects. The huge quantities of cement needed for such projects have been supplied by both international and local companies. Lafarge SA and Dangote Cement Plc are two of the most prominent international providers, whilst local companies such as Derba Midroc Cement (owned by the Ethiopian-born Saudi Billionaire Sheik Mohamed Hussein al-Amoudi), the state-owned Mugher Cement Enterprise and the Ethiopian People’s Revolutionary Democratic Front’s Messebo Building Materials Production Plc have all benefited from the boom. Other capital projects such as the Grand Ethiopian Renaissance Dam have become emblematic of Ethiopia’s vision, although not without controversy. This ambitious hydro-electric dam project awarded to the Italian construction firm Salini Costruttori (http://www.salini.it/en/) without a competitive bidding process has caused particular alarm in Egypt and Sudan where there is a fear that it will reduce water levels in the River Nile downstream. Human rights concerns have also been raised over land seizure and forced deportations of ethnic Amharas from the Benishangul-Gumuz ethnic state in western Ethiopia in the region where the dam is being built.

Hailemariam Desalegn, the current Prime Minister of Ethiopia, seems intent on continuing the modernization process begun by his predecessor. The fact that the Ethiopian PM holds a bachelor’s degree in Civil Engineering and a master’s degree in Sanitation Engineering means he is likely to be well disposed towards those individuals and companies intent on bringing about a transformation through construction projects.

For further information visit:

http://www.doingbusiness.org/data/exploreeconomies/ethiopia/

http://www.eiabc.edu.et/

http://www.globalwaterforum.org/2013/02/18/the-grand-ethiopian-renaissance-dam-and-the-blue-nile-implications-for-transboundary-water-governance/

The recent 19^th anniversary of the 1994 genocide in Rwanda reminds the world not only of the horrors of the recent past, but also the extraordinary progress made in recent years. The vision, drive and self reliance of the Rwandan people continues to amaze. In a wider world bedevilled by economic woes and apparently rudderless governments, Rwanda has an aspiration and determination that is resonating with and inspiring confidence in foreign investors. Foreign Direct Investment is growing steadily, with a recent report showing that figures FDI stood at $356.7 million in 2011, the previous year it had been $343 million. With returns on equity in 2011 at 19.5%, up from 13.4% in 2010 (the global average is 7.1%) Far from being complacent Rwanda is keen to capture further investment. Whilst mining and tourism are buoyant, the big successes have been financial services, ICT, manufacturing and agriculture. The renewable energy sector is also attracting considerable interest and with Rwanda’s mission to win further plaudits with regards to the ease of establishing a business and minimal corruption, the signs are very promising indeed. HABA clients frequently comment on the growing connectivity including aviation links as well as a policy of appointment on merit as key factors that are helping foster a healthy and positive business environment. Whilst Rwanda has to wrestle with the challenges of being land-locked, and having limited agricultural land it is fast proving an attractive business hub from which to operate. South African, Indian and Chinese investors are not the only ones waking up to the possibilities, if leading EU nations are examined, in 2011 the UK was in the lead with 1359 investment projects, then Germany (1237) and France (647). As with much of the region, there is still an enormous disparity between future investor perception and the reality on the ground. Those who have visited Kigali recognise just how far the country has travelled since the dark days of 1994. Whilst plenty more remains to be done, it is clear to HABA that Rwanda is country determined to prove itself an exemplar for Africa and the wider world.

For further information visit:

http://www.rdb.rw/

http://www.rwandahc.org/trade-and-investment/key-factors-for-foreign-investors/

http://www.statistics.gov.rw/

The frenetic activity surrounding oil and gas discoveries in East Africa often drowns out the quiet revolution that is taking place with regard to IT and new technologies. Mobile technology and the arrival of technology are proving to be the real game-changer in the lives of many ordinary citizens. Access to knowledge, markets and a real sense of connectivity to the world at large has proved liberating and frustrating in equal measure. Liberating in that technology has the ability to throw open a window on what is happening elsewhere, yet frustrating in that Central Governments and their laws and bureaucracies still seem intent on stifling entrepreneurial endeavor. Some have argued that new technology would by itself trigger immense economic growth, yet inadequate infrastructures, especially in regard to electricity production, continues to limit possibilities. Since the arrival of fibre optics connectivity in East Africa in 2009 there is an increasing body of evidence to suggest that it is playing a part in helping to foster innovation and the exchange of ideas. Providers such as Somcable Ltd (http://www.somcable.com) are helping lead the quiet revolution, one based on expertise, capacity building and long term investment. Knowledge centres such as the iHub (http://www.ihub.co.ke) in Nairobi, have come into their own and their example is emboldening a number of visionaries to plan the likes of Konza – Technology City, Kenya (http://www.konzacity.co.ke), which aspires to be ‘Africa’s Silicon Savannah’. HABA is only too well aware that we must beware false dawns, sustained development is still likely to remain patchy and in some countries painfully slow. Whilst it will always be the grand projects that grab the headlines, the real change will come through the education opportunities that greater connectivity presents, such educational opportunities look certain to will be embraced by regional urban, peri-urban and rural communities alike.

For further information visit:

http://www.oii.ox.ac.uk/research/projects/?id=59