Investment in Oil and Gas

Posted in Investment Promotion & Private Sector Development

In Burundi, recent seismic and magnetic surveys have indicated that there may be oil under Lake Tanganyika and the Rusizi river plam.

Kenya’s petroleum potential lies in four largish sedimentary basins: Anza, Mandera, Tertiary Rift and Lamu.

In Rwanda, there is hydrocarbon potential existing in North Western Rwanda and deep under Lake Kivu.

In Tanzania, significant gas discoveries have been made on the coastal shores of Songo Songo Island and Mnazi Bay, and commercial exploitation for power generation began in July 2004. Petroleum seismic coverage in the public domain is approximately 52,000 kms, 52% offshore and 48% onshore, including the interior rift basins.

In Uganda, a number of mining companies have taken up licenses in the mining sector. Oil was finally discovered in Western Uganda in 2006 after 17 years of exploration. This discovery is set to boost the country’s economy significantly.

The EAC organises the East African Petroleum Conference after every two years. The last one was held in February 2015. Among resolutions made include the need to develop the Partner States’ petroleum potential by harmonising policies and legal and fiscal regimes pertaining to petroleum exploration.

Investment in Mining

Posted in Investment Promotion & Private Sector Development

The EAC countries are richly endowed with a variety of mineral resources.

Burundi is well endowed with deposits of nickel, vanadium, cassiterite, colombo-tantalite, gold, uranium, rare earth oxides, peat, cobalt, copper, platinum, hydropower, niobium, tantalum, gold, tin, tungsten, kaolin and limestone.

Kenya has four belts of minerals - the gold green stone belt in western Kenya, which extends to Tanzania; the Mozambique belt passing through central Kenya, the source of Kenya’s unique gemstones; the Rift belt, which has a variety of resources including soda ash, fluorspar and diatomite; and, the coastal belt, which has titanium.

Rwanda has deposits of cassiterite, a tin ore, which is a very important ingredient of electronics components. The mineral is also found in Walikale, in DRC’s Northern Kivu Province, a part that borders Rwanda in the east. Other potentially profitable minerals include wolframite, columbite-tentalite, amblygonite and tantalite (colttan). Gold has also been explored in some parts of the country. Some semi-precious stones including tourmaline, topaz, corundum, chiastolite, amethyst, opal and agate have been discovered.

Tanzania has a wide variety of minerals including diamonds, gold, base metals, gemstones (including the unique Tanzanite) and a variety of industrial minerals (such as phosphates, mica, gypsum, limestone, graphite, quartz and vermiculite) that have a wide range of applications in ceramics, pottery, brick and tile-making, and glass manufacture as well as nickel, cobalt, copper, apatite, niobium, iron ore and coal.

Uganda also has a variety of mineral resources including copper, cobalt, tin, iron ore, tungsten, beryllium, limestone, phosphates, salt, clays, feldspar, diatomite, silica sand, glass, sand gravel, and construction materials such as granites and gneisses.

Investment opportunities exist in mining stone for the construction and building industry, phosphates for agriculture, salt for domestic and chemical uses, iron ore for the iron and steel industry, kaolin for leather tanning and pharmaceuticals, and silica sand and trona for glass manufacture; exploration and development of mineral deposits including oil, gold, copper, cobalt sulphide and hematite iron.

Investment in Manufacturing

Posted in Investment Promotion & Private Sector Development

Manufacturing offers a wide range of opportunities in the EAC Partner States. The region is currently a net importer of manufactured products such as machinery and transport equipment. By offering incentives such as zero rating of various raw materials, and through various manufacturing incentive schemes, the EAC Partner States have been trying to promote manufacturing as a way of diversifying their economies.

Textiles and Apparel

The EAC Partner States have a history of textile manufacture and are known for the production and export of handpicked cotton. The manufacture of garments has been revitalised since the signing of the African Growth and Opportunity Act in the United States, which allows EAC Partner States except Burundi (since 1 January 2016), along with other sub Saharan African countries, market access to the United States.

Investment opportunities thus exist in cotton ginning, production of yarn and finished textiles, marketing and trading in cotton and textiles as well as in cut, make and trim units. Rwanda offers opportunities in development of sericulture and the silk textile industry.

Iron, Steel and other Metals

Opportunities exist in the development of nucleus foundry making precision castings that can then be processed into precision components, aluminium cans, high-strength reinforcement bars, ductile iron rolls, casting sand and moulding. Opportunities also exist for investment in the mining of iron ore to supply the existing steel mills, the production of sponge iron for steel mills and the production of steel products.

Vehicle Parts and Assembly

The number of new motor vehicles registrations in the region has been increasing rapidly over time.

Although some car parts are produced locally, accessories of some of vehicles, especially of European origin, are often lacking in the market. Opportunities exist in the manufacture of components for use by local assemblers and for export to regional markets. Use of bicycles as a mode of transport is widespread in the region, providing opportunities for bicycle assembly.

Electronics

The electronics industry is growing rapidly with a number of firms engaged in assembly, testing, repair and maintenance of electronic goods. Investment potential exists particularly through Manufacturing Under Bond and Export Processing Zones programmes in the production of consumer electronics such as TVs, VCRs, disk drives, etc. as well as telecommunications equipment and support industry items such as cables, cords, die casting, metal plating, etc.

Electrical Equipment

Investment potential can be found in the production of motors, circuit breakers, transformers, switch gears, irrigation pumps, capacitors, resistors, insulation tapes, electrical fittings and integrated circuit boards for both regional and international markets.

Plastics

Opportunities exist in all five Partner States in the production of plastic articles to meet the domestic demand as well as demand in the broader region.

Chemicals

Investment opportunities can be found in the production of Polyvinyl Chloride resin from ethyl alcohol, formaldehyde from methanol, melanine and urea, mixing and granulating of fertilisers, cuprous ox chloride for coffee bean disease, caustic soda and chlorine based products, carbon black, activated carbon, precipitated calcium carbonate, textile dyestuff, ink for ball points and gelatin capsules, among other things.

Pharmaceuticals

Investment opportunities exist in the manufacture of drugs for the treatment of various tropical diseases, the provision of modern family-planning services, and the manufacture of medical equipment and sundries (surgical cotton/gauze, sanitary pads, syringes, bandages, infusion syrups, oxygen). The rich biodiversity of the region also provides an opportunity in the processing of herbal medicines. The processing of pyrethrum extracts and the production of vaccines, antibiotics and vitamins also offer investment opportunities.

Beverages

The main beverage production activities in the region include coffee roasting, tea processing, and the production of soft drinks and alcoholic beverages. The region has a competitive advantage in processing these products because it produces most of the raw material used in this industry including fruits, barley, coffee and tea. Investment in this sector has been increasing, especially in producing soft drinks. The demand for beverages in the region is on the increase. Investment opportunities exist in production, targeting both local and export markets.

Packaging

The packing industry includes all forms of printed paper and plastic packaging, woods, foil and glass packaging. It is a strategic sub-sector as it supports other industries (especially pharmaceuticals, horticultural products, beverages, edible oil, fish, and dairy products) in marketing and distribution generally, as well as in international trade. The developments in the manufacturing sector, especially the production of consumer goods, explain the increased demand for plastic packaging items.

Investment opportunities exist in the production of glass containers (raw material available), tin cans /boxes, corrugated cases (shuffle), cartons and labels, flexible packages, rigid plastics, and thin-walled plastics.

Investment in Infrastructure

Posted in Investment Promotion & Private Sector Development

From building roads, railways and port facilities, to installation of air navigation infrastructure, there are opportunities aplenty for investment in infrastructure in the EAC region.

The EAC Partner States have agreed to develop common policies with respect to infrastructure. The region will also benefit from the NEPAD infrastructure development programme covering transport, energy, ICT, and water and sanitation.

At the national level, each Partner State is implementing restructuring programmes, which aim at reducing government involvement in commercial activities and encouraging Public-Private Partnerships.

Opportunities are available in the areas of:

• Air transport;
• Port facilities;
• Railways;
• Road transport; and
• Water transport