interested in the deal. Just what does our region offer?

The EAC integration process is now in top gear and the region is poised to benefit from the consequent boost to trade and investment this will deliver. With a viable single market and the commencement of the EAC Customs Union there will be more cost efficient movement around the region enabling businesses to distribute goods to a wider customer base.



Even some of Kenya’s most cherished local companies have significant foreign ownership. This injection of capital has enabled local business leaders to scale up their operations to become true regional forces whilst still retaining a loyal consumer base who feel ownership of the brand.



As well as access to more investment, entrepreneurs can take advantage of supply/demand opportunities across national borders – namely, where one nation has excess goods and another has greater demand. Now, without restrictive tariffs, the entry into such an import/export business is viable for more and more people – not just large corporates with the capital to pay high tariffs and export large enough amounts to reach a profitable threshold.



These developments will all pique the interests of investors who will no doubt see the opportunity to invest in national, entrepreneurial businesses with an eye to supporting them to grow and expand regionally. Academic literature points strongly to a positive correlation between international investment and domestic economic growth – more importantly, real life examples do so too - as long as the international investors are the right partners. In particular, investment in infrastructure has been one of the greatest accelerators of growth with deficient infrastructure shown to limit productivity of firms by up to 40% (according to World Bank report, 2008).



Let’s look at specific examples. International funding is set to drive the re-development of Djibouti’s port system. By improving container facilities, the project will increase port traffic and open up new opportunities for investment and growth, including breaking the country’s reliance on Ethiopia’s trade and attracting other African countries to use the port as a gateway. A state-of-the-art container terminal could establish Djibouti as a gateway for the Common Market for Eastern and Southern Africa (COMESA) members, further facilitating entrepreneurial businesses seeking to import goods by creating greater competition, increasing capacity and ultimately lowering transport costs.



It is clear that without development of physical infrastructure to facilitate greater movement of people and goods, small businesses and entrepreneurs will remain constricted. It is on this basis that nations and regions are now proactively seeking public private partnerships to revitalise transport networks.



Rail remains the most cost effective way to transport goods over land yet investment in this network is still desperately needed if entrepreneurs and ultimately our economies are to realise the full potential of an integrated market. Currently, the EAC railway network whose master plan was finalized last October is seeking development partners to meet the $900 Million investment needed. RVR is in dire need of an injection of funds and management expertise but could potentially service thousands of businesses – large and small, boosting regional trade and building vital capacity for local entrepreneurs looking to scale up their operations.



We need this injection of investment from partners who are committed to long term engagement, experienced in the sector and with the financial capital to make it happen. Only this will enable us to build the SMEs which are East Africa’s lifeblood into regional players.



Time is ticking on the 14 day deadline imposed by the Kenyan and Ugandan Governments; the time for game playing is over. Now is the time for people to put their money on the table and give us the functioning infrastructure we need to build East African businesses.