To combat the problem of poor transport infrastructure, Ugandahas embarked on road and railway network restructuring programmes. The UgandaNational Road Authority is working to see that the country's roads are safe,efficient and well developed while Rift Valley Railways International (RVRI),headed by Africa's leading private equity firm, Citadel Capital, is putting inplace plans to overhaul the Kenya- Uganda railway network.
The government is especially keen on revamping the railwaynetwork because the EAC's economy depends on the ability of its business classto transport their goods in bulk, over long distances, safely and cheaply. Thissuggests that even if East Africa's roads were in stellar condition, it wouldstill be imperative to have a railway network that worked, and worked well.
A revitalised railway, with proper connectivity, providingaccess to lucrative regions, would contribute greatly towards attractinginvestors. Investors like to be sure, before they sink their finances into aproject, that they won't be incurring any hidden costs. A visible, high qualityrailway system which is easily accessible from their area of operation wouldassure them of this, encouraging significant investment which would in turnboost the micro and macro economies of East Africa.
One of East Africa's major problems is the issue of poorplanning while constructing the roads leading into and out of the capitalcities. The roads were built to endure much less of the vehicle traffic theyendure now. Until we are in a position to build new, better planned cities, theonly solution is to find ways to divert traffic and possibly reduce the numberof cars on the roads. Railway transport can do this. Efficient cargo trainswould easily replace the trailers that congest the roads. Regular cars wouldonce again have the right of way, saving everyone time and money.
Improving the region's railway network sets it up for evenfurther development in that it is easier to build on what is already there.Currently, the notion of a passenger train is not economically viable mainlybecause the network does not penetrate the region properly and is mainlyaccessible to economic centres. If the railway were to be extended in all directions,with a route through each town, soon, there would be people clamouring for railtransport. And not just tourists.
It is important to bear in mind that most people in rural areasare agriculturalists who have almost no way of furthering their businessesbecause transporting goods is too expensive. At a time when the East Africangovernments are seeking to boost Small and Medium Enterprises, railwaytransport seems to be the ideal solution.
With a railway system that provides straight access to border townsand beyond, livestock and dried food stuffs can be taken further, allowingpeasants to broaden their market.
East Africa is bursting with potential for success. Investing inits railway, though a pricey venture, will in the long run benefit the communityquite significantly, making it a force to reckon with in the business world.
Mr Kiyingi is the Managing Editor, www.myfinance.co.ug
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This article originally appeared in DailyMonitor
