Africa Investment Forum: DBSA, East African Community seek to boost infrastructure development with joint MoU

The East African Community (EAC) and the Development Bank of South Africa (DBSA) have entered into a Memorandum of Understanding (MoU) at the Africa Investment Forum to collaborate on infrastructure development projects in the region. The EAC, a regional economic community comprised of Uganda, Kenya, Tanzania, Rwanda, Burundi, and the Republic of South Sudan, has been actively working towards integration through various economic stages, including a customs union and a common market. The partnership with DBSA will focus on financing and supporting public and private sector projects, with a particular emphasis on infrastructure such as energy, roads, rail, airports, and ICT, as well as social development projects in health and education. The MoU encompasses various aspects including project planning, execution, financing, and information sharing. By prioritizing bankable projects and involving the private sector, the collaboration aims to drive integration in the East African region. The EAC's Director General, Kenneth Bagamuhunda, highlighted that the community's population of approximately 170 million people presents a significant market potential and enables them to play a key role in the Continental Free Trade Area (CFTA) alongside a total of 1.2 billion Africans. The EAC is also actively engaging with countries like the Democratic Republic of Congo and Somalia to expand its reach and influence within the continent. Mohan Vivekanandan, Group Executive at DBSA, expressed enthusiasm about the partnership, emphasizing the bank's commitment to using infrastructure development to promote economic growth and enhance quality of life. He cited several ongoing projects supported by DBSA in the region, such as the Kenya pipeline and the standard gauge rail in Tanzania, as examples of their investment focus. Vivekanandan highlighted the importance of long-term planning and infrastructure master plans in supporting the East African community's development. The collaboration between EAC and DBSA is expected to lead to concrete actions in the near future, with an aim to channel developmental capital towards priority infrastructure projects identified by the countries and the region. While specific financial figures were not disclosed, Kenneth Bagamuhunda mentioned that the EAC had projects worth about 70 billion US dollars lined up last year. The focus will be on projects that promote trade, industrialization, value chain development in sectors like agro-processing, extractive industries, and services that significantly contribute to the GDP. DBSA typically invests up to half a billion dollars outside of South Africa, with individual project investments averaging around 100 million dollars. By assisting in planning and preparation work, DBSA aims to attract additional private capital into infrastructure projects in East Africa. The partnership is seen as a significant step towards advancing regional integration and economic development in the continent, with both parties poised to leverage their strengths to drive sustainable growth and prosperity.