Kagame and Museveni Mobilizing Local Investors To Address Trade Barriers, Reports KT Press

KIGALI, Rwanda, Oct. 10, 2014 /PRNewswire/ -- Rwanda and Uganda governments are seeking collaboration with local investors to deal with insufficient electricity and high transport costs hindering the two economies.

The two countries, under the theme: "Accelerating Regional Trade and Investment", mobilized over 300 business executives and met in Uganda's capital Kampala on Wednesday where they discussed the possibilities of solving the daunting energy and transport problems.

Presidents Paul Kagame and Yoweri Museveni chaired the high-end conference.

Kagame said one of the solutions is pooling resources in terms of capital mobilization. "Private sector and government have to work together. One wouldn't make it without the other," he said.

 Museveni said, "You cannot deal with capitalism without dealing with basics like electricity, market access and peace. When you solve the basics like electricity then it becomes easy to mobilize external capital."

Despite insufficient energy and high transport costs, the two economies have maintained a steady growth. Museveni describes the scenario as "a miracle". "We live in the land of miracles where growth is taking place without struggle," he said.  

Meanwhile, the forum trade barriers hindering cross-border trade between the two countries were also discussed.

These include roaming charges, and non-tariff barriers along the Northern Corridor.

Traders said lack of affordable and proper transportation creates 30% additional costs on business.

Carolyn Turk, the World Bank Rwanda country manager told local press this week that there are quite a number of non-tariff barriers that need to be alleviated to ease business.

She suggested cutting down the cost of electricity, new sources of power be generated and those in the sub-region improved.

During the business forum, Rwanda's Dennis Karera, the Managing Director of Kigali Heights, a $37m (real estate) youth project, said the best approach is raising equity and forging partnerships.

"Going solo in business means going small... we need to get the right people to study projects for us, you cannot succeed alone," he said.

On the sideline, investors in other sectors made commitments and shared experiences.

Emmanuel Katongole, the founder of Uganda Quality Chemicals that produces ARVs and malaria drugs, said the firm is setting up a second plant three times the quantum it produces. "We are doing research and development to be able to manufacture medicines by ourselves," he said.

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SOURCE KT Press