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Monday, October 02, 2006

A True Economic Union Can Benefit ALL E.African Countries

Tanzania has abundant coal deposits that it can't exploit, Uganda has an inefficient dam system while Kenya relies on hydroelectric power through rain-fed dams.

If TZ would ease up on its xenophobic attitude towards Kenya, there is sufficient liquidity amongst the private firms to develop the coalfields.

  • A resurgent KR could hook up with Tazara to extend the railway all the way to southwest TZ & ship the coal to Kenya.
  • KenGen could colloborate, provide funds & expertise for the power plants.
  • KPLC could extend its grid further south to enable imports from TZ and re-exports to Uganda.
  • Bamburi uses coal for its plants & would invest to ensure a reliable supply at a reasonable cost.
  • Various manufacturers could use SW Tanzania as a springboard to S.African countries/markets like Malawi & Mozambique.
If the EA countries don't give it the old college try, we have no-one to blame but ourselves!


Anonymous said...

Sorry but I wouldnt hold my breathe if I were you.

coldtusker said...

Neither would I... I do not care for a political union but an economic union could do wonders for all concerned!

Most of Kenya's citrus imports are from TZ.

UG is Kenya's largest export market!

TZ+Kenya could provide great "combo" safaris.

I could go on and on... at least Celtel recognises that all of EA is one market!

Kudrinketh said...

cmon tusker baridi, all the points you mention just show the very reason why they will not join us.They are very afraid of our entrepreneurship/greed(yes,they are interchangeable)

They're afraid it'll just be another round of exploitation by Kenyans before we pull a fast one on them and keep the loot, aka 1977 style.

I think political union might be easier for them to accept coz they outnumber us.

mwasjd said...

Isn't there coal somewhere in ukambani that hasn't been exploited yet??

As for economic union, I guess UG & TZ are a bit wary of being overdominated. But how come the numbers show that they get more FDI than us? Shouldn't their economies be in a position to dominate ours??

coldtusker said...

Kudri - Political unions are far more difficult e.g. the EU is an economic union but not political.

The largest such union is the United States of America. Fully integrated economically but not politically. Each state has a governor, army (national guard), legislature, etc!

coldtusker said...

mwasjd - FDI's are good BUT real growth comes from INTERNAL investments since these are likely to stay around longer.

Kenya managed to set up all sorts of light industries thanks to the capitalist path taken much earlier (well, Kenyatta did do some good!)...

TZ attratcs FDI but in extractive (mining) industries not the other sectors including "value" adding sectors.

gathinga said...

kenyas exports to tz, ug continue tow grow despite the protectionism. am convinced that in the long run, the more efficient will prevail against the it happened in europe after the fall of the berlin wall. TZ are just postponing an inevitable occurence.

kenyanentrepreneur said...


Borders will not restrict capitalists. If a Tanzanian believes that he can make more money by buying or selling in Kenya or by hiring kenyans...believe me, he will do it. Xenophobia be damned.

When I look at UG & TZ...we are really the same people - both culturally and linguistically. I would have no problem doing business in either country if the conditions were good.

Now, Somalia or Ethiopia...those are foreign countries to me.

Kudrinketh said...

I see your point, but we gotta find some common ground with TZ and if it'll take us subscribing to their politics, so be it.

I'm looking forward to when politics will cease to play such a major role in our society, maybe these privatizations is a good start.

coldtusker said...

What we need is Rwanda's economic endeavours (clean, growth-oriented) with Tanzania's politics (issues not personalities)...

BUT the best is - ask KE - Lee Kuan Yew of Singapore... a 10-yr contract with NO conditions & he will make Kenya an African superpower!

kenyanentrepreneur said...


You can add Manmohat Singh - the president of India to that list. He is the one who is ignited india's economy.

coldtusker said...

I am going to list my dream team... as a blog entry...

Lee - Prez
M Singh - Finance
Sam Pitroda - IT
Warren Buffett - Investments
Mandela - Foreign Affairs
Putin - Internal Affairs

Any other suggestions?

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