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March 2015 INVESTING IN THE GREAT LAKES REGION: AN INVESTMENT OPPORTUNITIES BRIEF (IOB) Volume 1 Promoting Increased Private Sector Investment in the Great Lakes Region

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The United Nations Office of the Special Envoy of the Secretary-General for the Great Lakes Region

The establishment of the United Nations Office of the Special Envoy of the Secretary-General for the Great Lakes Region (OSESG) represents the most recent effort by the United Nations to bring peace and stability to Africa’s Great Lakes sub-region which has been plagued by decades of political instability and armed conflicts, porous borders and humanitarian crisis, along with tensions over natural resources and other potentially destabilising factors. A key step in recent efforts has been the adoption, in February 2013, of a UN-brokered accord aimed at stabilising the Democratic Republic of the Congo and the region. The Peace, Security and Cooperation Framework – signed by Angola, Burundi, Central African Republic, the Republic of the Congo, the Democratic Republic of the Congo, Kenya, Rwanda, South Africa, South Sudan, Sudan, Uganda, Tanzania and Zambia – encompasses commitments at the national, regional and international levels to bring peace and stability to the eastern DRC and the region. The OSE-GL has been especially tasked with supporting the implementation of this “Framework of Hope”.

The International Conference on the Great Lakes Region

The International Conference on the Great Lakes Region (ICGLR) is an inter-governmental organisation of the countries in the African Great Lakes Region. Its founding history began in 2000 when the United Nations Security Council, as stated in its resolutions 1291 and 1304, called for an International Conference of peace, security, democracy and development in the Great Lakes region. Later that year, the Secretariat of the International Conference was established in Nairobi, Kenya, under the umbrella of the United Nations and the African Union. The ICGLR Executive Secretariat celebrated its inauguration in May 2007 at its headquarters in Bujumbura, Burundi. Its responsibility is to coordinate, facilitate, monitor and thereby ensure the implementation of the Pact in order to attain peace, security, political stability and development in the Great Lakes Region. The organisation is composed of twelve member states, namely: Angola, Burundi, Central African Republic, Republic of Congo, Democratic Republic of Congo, Kenya, Uganda, Rwanda, Republic of South Sudan, Sudan, Tanzania and Zambia.

Investing in the Great Lakes Region: An Opportunities Brief, Volume 1: Promoting Increased Private Sector Investment in the Great Lakes Region is part of a three volume set of documents and should be read in conjunction “An Overview of the Investment Opportunities Brief (IOB) Consultative Process, Lessons Learned and Key Findings” and “Volume 2: Country Profiles of the Expanded Great Lakes Region: The 13 Peace, Security and Cooperation Framework Signatories”

Acknowledgments

OSESG and ICGLR would like to acknowledge all of those who contributed to the development of this Investment Opportunities Brief (IOB) compendium of documents that are intended to illustrate and promote the investment opportunities that exist and that are emerging in the Democratic Republic of the Congo and the Great Lakes Region.

Particular appreciation is given for the overall project stewardship of the process of compilation of this Investment Opportunities Brief. Special recognition from the Office of the Special Envoy of the Secretary General for the Great Lakes Region (OSESG-GL): Assistant Secretary General Modibo Toure and his colleagues Aniefiok Johnson, Anna Stoyanova, Luc Ngowet, and Allan Mukungu of the UN; from the International Conference on the Great Lakes Region (ICGLR): Ambassador Vicente Muanda and his colleagues Mohamed Bouabdalli and Evelyne Mbata; from the UNDP Regional Bureau for Africa: Director Abdoulaye Mar Dieye; from the UNDP Regional Service Centre for Africa: Regional Director Lebogang Motlana, and his colleagues from the African Facilities for Inclusive Markets Tomas Sales, Juergen Nagler, Pascale Bonzom, Priscilla Chimwele, Olivia Dooley, Yonathan Workineh and Gemechu Berhanu.

Special gratitude for the technical contributions from Director Catherine Masinde, Maria Miller, Sarah Ruth Ochieng and Julian Haarmann of the International Finance Corporation (IFC) and Gabriel Negatu and Rafael Jabba of the African Development Bank (AfDB), Herman Tuyaga Director and Joseph Lititiyo Deputy Executive Secretary of the Economic Community of the Great Lakes Countries (CEPGL); Andrew Luzze Kagwa Executive Director of the East African Business Council (EABC); and the consulting team of Africa Business Group (ABG), including Michael Sudarkasa, Ernest Fausther, Mignonne Karugu, Stefan Engels, Aisha Jackson, Michel Kahasha, and Denan Kuni.

Also duly appreciated is the UNDP Regional Bureau for Africa’s funding and especially its Private Sector Regional Project, the African Facility for Inclusive Markets (AFIM), for the provision of management, technical and operational support to the entire IOB process.

Thanks also go to the colleagues from the IFC, World Bank, European Union and African Development Bank who contributed to this work.

Two technical review meetings were held in preparation of the IOB documents. In addition to the valuable technical inputs received from colleagues from the institutions noted above, subject matter experts from the RECs such as CEPGL, COMESA, SADC, and the East African Business Council, and UNDP Country Economists in DRC, Angola, Burundi, Rwanda and Uganda, also provided insights and ideas. All of their contributions were very helpful and are noted.

Lastly, we would like to acknowledge the various stakeholders who took the time to meet with the expert consulting firm Africa Business Group (ABG) in the respective country consultations.

Disclaimer

The United Nations makes no representation concerning, and do not guarantee, the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice or opinion contained within this publication. The inclusion of company examples does not in any way constitute an endorsement of these organizations by the UN. The material in this publication may be quoted and used provided there is proper attribution.

The material in this publication is copyrighted. The UN encourages the dissemination of the content for educational purposes. Content from this publication may be used freely without prior permission, provided that clear attribution is given to the UN and that content is not used for commercial purposes.

© United Nations 2015

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Abbreviations and Acronyms 2 Figures and Charts 4

Executive Summary 5Chapter 1 The Market: An Overview of the Great Lakes Region 8 Chapter 2 Why Invest in the Great Lakes Region? 14 Chapter 3 Selected Sectors of Investment Opportunity 26 Agriculture 28

Energy 34

Finance 38

ICT 41

Infrastructure 43

Mining 49

Tourism 52

Chapter 4 Investment Risk and Risk Mitigation Safeguards 56

Appendix I Investment Support Resources 60 Policy 60

Infrastructure Development and Finance 60

Regional Integration Projects 60

Private Sector Collaboration/ Partnership 61

Equity, Project, Inclusive Business and Micro-Finance 61

Agriculture Sector 61

Energy Sector 62

Finance Sector 62

ICT Sector 63

Infrastructure Sector 63

Mining Sector 63

Tourism Sector 63

National Investment Promotion Agencies 64

African Legal Networks 64

Accounting Practices 64

References 66 Footnotes 68

Contents

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AA Action AidACTED Agency for Technical Cooperation and DevelopmentAECF Africa Enterprise Challenge FundAT AEGI TrustAFD French Agency for DevelopmentAFDB African Development BankAHA Africa Humanitarian ActionAI Amnesty InternationalAGRA Alliance for Green Revolution in AfricaANIP National Agency for Private Investment (Angola)API Angola Partnership InitiativeASAREC Association for Strengthening Agricultural Research in Eastern and Central AfricaAWEPA Association of European Parliamentarians with AfricaBMG Bill and Melinda Gates FoundationBOT Build - Operate - TransferCAR Central African RepublicCDF Community Development FundCENSAD Community of Sahel Saharan StatesCES Cooperatione e Sviluppo CF Clinton FoundationCEPGL Communauté Économique des Pays des Grand Lacs CIDA Canadian International Development AgencyCIPA Community Initiative for Prevention of HIV/AIDSCLSP Strategic Framework for Growth and Poverty Reduction (Cadre de Croissance et Lutte contre la Pauvreté)COMESA Common Market for East and Southern AfricaCORAID Catholic Organization for Relief and Development AidCOU-PDR Church of Uganda – Program Development and ReliefCOU-KDPA Church of Uganda – Karamoja Diocese Development ServicesCPAR Canadian Physicians for Aid and Relief CRS Catholic Relief ServicesCWR Concern Worldwide FoundationDANIDA Denmark EmbassyDCA Dan Church Aid DDAG Darfur Development Advisory GroupDDRO Darfur DevelopmentDFID UK Department for International Development DRC Democratic Republic of the CongoEAC East African CommunityECCAS Economic Commission of Central Africa StatesDWB Doctors without BordersECGLC Economic Community of the Great Lakes CountriesEU European UnionEC European Union CommissionFTA Free Trade AgreementGDP Gross Domestic ProductGF Global FundGIF Global IntegrityGIZ German Development AgencyGLR Great Lakes RegionGLRPSIC Great Lakes Region Private Sector Investment ConferenceGOA Government of Angola GOZ Government of ZambiaHBF Howard Buffet FoundationICGLR International Conference on the Great Lakes RegionICT Information, Communications and TechnologyICRC International Committee of the Red CrossIEE International Education ExchangeIF Imbutu FoundationIFAD International Fund for Agricultural Development

Abbreviations and Acronyms

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IFC International Finance CorporationIGAD Intergovernmental Authority on DevelopmentILO International Labor OrganizationIMF International Monetary FundIOB Investment Opportunities BriefIPP Independent Power ProducerIrish AID Irish Agency for International AIDISS Africa Institute for Security Studies AfricaIWPR Institute for War and Peace Reporting - NetherlandsJRF Jesuit Refugee FoundationKPA Kenya Ports AuthorityKSI Kickstart InternationalLWF Lutheran World FederationMONUSCO United Nations Organization Stabilization Mission in the Democratic Republic of the CongoMONARLIP Moroto Nakapiripirh Religious Leaders Initiatives for PeaceMSF Medecin Sans FrontieresMV Millennium VillageNGO Non-Governmental OrganizationNORAD Norwegian Agency for DevelopmentOCHA Office for the Coordination of Humanitarian AffairsOHADA Organization for the Harmonization of Business Law in AfricaONE One Acre FundOSESG The Office of the Special Envoy of the Secretary General for the Great Lakes Region PMI President’s Malaria InitiativePPP Public Private PartnershipPEMR Public Expenditures Management ReviewPSCF Peace, Security and Cooperation FrameworkRAKAI Rakai Counsellors AssociationRACOBAO Rakai Community Based AIDS OrganizationREACH Reproductive Educative and Community Health Program RF Rockefeller Foundation R2P Right to PlayRISD Rwanda Initiative for Sustainable Development SADC Southern African Development CommunitySDC Swiss Development Cooperation SEZs Special Economic Zones SIDA Swedish International Development AgencySNV Netherlands Development AgencySOCAIDO Soroti Catholic Diocese Integrated Development OrganizationSSD Caritias Moroto Social Services and DevelopmentSuWEP Sudanese Women Empowerment for PeaceTPO Transcultural Psychosocial OrganizationTSC Technical Support CommitteeUCAA Uganda Change Agent AssociationUDN Uganda Debt NetworkUJCC Uganda Joint Christian Council ULA Uganda Land AssociationUN United NationsUNDP United Nations Development ProgramUNIDO United Nations Industrial Development OrganizationUSAID United States Agency for International Development UWONET Uganda Women NetworkWB World BankWFE Wellspring Foundation for Education WFP World Food ProgrammeWHO World Health OrganizationWV World VisionWVI World Vision InternationalWWF World Wildlife Foundation

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FIGURES PageFigure 1. Signatories of the Peace, Security and Cooperation Framework 5Figure 2: African Private Equity Returns 6Figure 3. The Great Lakes Size from Largest to Smallest 8Figure 4. Signatories of the Peace, Security and Cooperation Framework 9Figure 5: The DRC and the Great Lakes Region Countries 9Figure 6: GDP growth, unweighted annual average, % 14Figure 7. South Africa’s Share of Global Mineral Resources 15Figure 8. Mineral Wealth in the Great Lakes Region 15Figure 9. Africa’s Land Potential 16Figure 10. Africa’s Growing Cities 16Figure 11: Greater Parity in the Education of Boys and Girls 17Figure 12. Demographic Change in Africa through 2050 17Figure 13. Africa Increasingly Educated Youth 17Figure 14. The Structure of Africa’s South-South Relationships 18Figure 15. China – Africa Two Way Trade Grows to $200 billion + 18Figure 16. Increasing Global Trade with Africa 18Figure 17. China in Africa: A Non-Traditional Development Partner 20Figure 18. Selected Key African Infrastructure Development Initiatives Offering PPP Opportunities 21Figure 19. FDI Returns in Africa Lead the World 22Figure 20. Rising Private Equity Return on Investment in Africa 22Figure 21. New FDI Hotspots are Emerging in Africa 23Figure 22. Largest Intra-Regional Investors in Africa 25

CHARTS PageChart 1. Economic Snapshot of the PSCF Great Lakes Region 5Chart 2. Economic Snapshot of the PSCF Great Lakes Region 8Chart 3. Remittances 10Chart 4. Growth of African Cities 10Chart 5. Great Lakes Region Comparative Economic Standing 11Chart 6. Regional Economic Communities within the Great Lakes Region 12 Chart 7. Resources, Markets, Youth 12Chart 8: Africa’s Fast Growing EconomiesChart 9. Expanding Development Partner Relationships in AfricaChart 10. Global Competitiveness Index 19Chart 11. Top Reformers Globally – Business Regulatory Efficiency Improvement 19Chart 12. Mo Ibrahim Index of African Governance 2013 19Chart 13. World Bank Doing Business Indicators 2013 19Chart 14. Growing Interest in Africa among Private Equity Investors 22Chart 15. Key African Hubs: Reality vs. Perception 22Chart 16. Selected Domestic and Multinational Investors in the GLR 23Chart 17. FDI Sectors in Africa 24Chart 18. Africa’s Relative Attractiveness – Strongest for Existing Investors 24Chart 19. Intra-Regional FDI Projects in Africa are at an All Time High 25Chart 20. Upcoming Great Lakes Region Presidential Elections 58

Figures and Charts

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With a population of close to 370 million people and an aggregate GDP of US$1.1 trillion, the thirteen signatories of the Peace, Security and Cooperation Framework (PSCF) (i.e. the 12 member states of the International Conference on the Great Lakes Region and South Africa) comprise an attractive, dynamic and growing market for investors interested in sub-Saharan African foreign direct investment, private equity investment and public-private partnerships.

Chart 1. Economic Snapshot of the PSCF Great Lakes Region

No. Country Population Area (sq. km) GOP (PPP) (in US$) GOP (OER) GOP per capita

1 Angola 24,000,000 1,246,700 $131,800,000,000 $127,000,000,000 $5,291

2 Burundi 10,395,931 27,830 $5,750,000,000 $2,676,000,000 $600

3 CAR 5,277,959 622,984 $3,336,000,000 $2,050,000,000 $700

4 Congo 4,662,446 342,000 $20,260,000,000 $14,250,000,000 $4,800

5 DRC 77,433,744 2,344,858 $29,390,000,000 $18,560,000,000 $400

6 Kenya 45,010,056 580,367 $79,900,000,000 $45,310,000,000 $1,800

7 Rwanda 12,337,138 26,338 $16,370,000,000 $7,700,000,000 $1,500

8 South Africa 48,375,645 1,219,090 $595,700,000,000 $353,900,000,000 $11,500

9 South Sudan 11,562,695 644,329 $14,710,000,000 $11,770,000,000 $1,400

10 Sudan 35,482,233 1,861,484 $89,970,000,000 $52,500,000,000 $2,600

11 Tanzania 49,639,138 947,300 $79,290,000,000 $31,940,000,000 $1,700

12 Uganda 35,918,915 241,038 $54,370,000,000 $22,600,000,000 $1,500

13 Zambia 14,638,505 752,618 $25,470,000,000 $22,240,000,000 $1,800

Total 369,822,511 10,829,106 $1,146,316,000,000 $709,496,000,000 $2,815.38

Notes: PPP – Purchasing Power Parity; OER – Official Exchange RateSource: author’s compilation, 2014 US CIA Factbook

Specifically, the expanded Great Lakes Region states include: Angola, Burundi, Central African Republic, Congo, Democratic Republic of Congo, Kenya, Rwanda, South Africa, South Sudan, Sudan, Tanzania, Uganda, and Zambia.

Figure 1. Signatories of the Peace, Security and Cooperation Framework

Executive Summary

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1 Sudan2 South Sudan3 Central African Republic4 Uganda5 Rwanda6 Burundi7 Kenya8 Tanzania9 Dem. Rep. of Congo10 Congo11 Angola12 Zambia13 South Africa

Source: author’s compilation map

Key sectors that offer excellent private sector investment opportunities in the region include the following: agriculture, energy, finance, infrastructure, ICT, mining and tourism. There are seven key drivers of economic growth across the region that continue to make the region attractive to investors:

1. Tremendous natural resource reserves,2. An abundance of arable land, water and growing food

demand,3. A youthful, fast growing, urbanizing, increasingly educated

and middle class population,4. Expanding export markets, trading partners and

development assistance partners,5. An improving governance and business environment 6. Increasing focus on infrastructure development, and7. Globally leading returns on investment

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Figure 2: African Private Equity Returns

The later factor has also helped stimulate accelerated intra-regional investment on the continent over the past five years to the point that nearly 25% of the FDI projects undertaken in sub-Saharan Africa in 2013 were made by investors already having a presence on the continent. Three countries, South Africa, Kenya and Nigeria, led this trend of intra-regional investment and two of them, Kenya and South Africa are found within the emerging expanded Great Lakes Region (GLR). The investment by investors from these countries further accounted for 60.9% of the job creation from FDI in 2013, as well as 62.3% of the overall number of projects recorded. Also of note was the fact that of the top 15 country destinations for FDI in 2013, seven were found to be in the expanded GLR – Rwanda, Zambia, Uganda, Tanzania, Angola, Kenya and South Africa.

Sectorally, the opportunities that are emerging in the region are quite diverse, but one increasingly important area of focus is the desire by the region’s governments to pursue private sector participation and collaboration on projects that historically would be considered “public goods” projects (particularly infrastructure projects) undertaken solely by Ministries of Public Works as well as more innovative initiatives in areas such as agriculture, banking, communications and energy.

In terms of key investment needs in the region, infrastructure, particularly energy transport infrastructure have emerged as areas of critical need. In response to this, there are currently a number of hydro electrification projects under way as well as transmission line development, rehabilitation and expansion projects underway to allow the countries of the region to manage their energy needs more effectively through power pool connectivity.

Three important port related projects – the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor (South Sudan, Ethiopia and Kenya) initiative, the Northern Corridor (Kenya, Uganda, Rwanda) initiative, and the Lobito Corridor

(Angola, DRC and Zambia) offer billions of US dollars of investment opportunities in multi-year, multi-sectoral initiatives that have been named priority projects by the governments involved. In addition, regional integration focused projects such as the Southern Corridor rail initiative – linking by rail the countries adjacent to the Great Lake waterways and the Kisumu Port rehabilitation project, which aims to kick start an initiative to develop the lake ports in the region for increased water trade throughout the lakes and improved water transportation alternatives as well.

In addition, there is the Central Multimodal Transport Corridor that involves upgrading and modernizing the roads from Tanzania through Burundi and Rwanda to the DRC and Uganda. It plays an integral part in linking the countries and facilitating regional trade and improving the transport capacities of the related countries.

Given the growing population and the fact that the region has millions of hectares of arable land and excellent water access for farming, agriculture is also booming in the region and a focus of both private investors and government stakeholders. Agriculture is also recognized as a job creating sector and numerous initiatives are emerging to promote increased involvement of women and youth in this sector. Multi-stakeholder initiatives such as the Southern Agricultural Growth Corridor of Tanzania and the Agri-Parks Programme of the DRC are also beginning to take off – with staged efforts and aspirations to address food security needs in the region, promote import substitution, while at the same time attracting hundreds of millions of dollars of investment.

Impact investment and micro-finance have been identified as key sectors of focus to support the inclusion of more SME, small holder operators and global value chains that are emerging in the region. As such, the finance sector, has become both a catalyst for economic growth in the region, as well as an investment destination itself.

In addition to seeking to have the seven land-locked countries of the region to become more connected to one another (and to the outside global business community, through rail, road, air and sea links) there is also significant focus on ICT related connectivity to ensure that high speed digital and voice communication between the countries of the region is also possible.

While much has been done over the past nearly two years since the Peace, Security and Cooperation Framework was signed, political risk in the region is something that has been identified and must be mitigated by prudent investors. Over the next three years, 12 of the thirteen countries in the region will be having Presidential elections. As well, historic ethnic conflicts, while reduced in aggregate, still have the potential to rear their heads given the unacceptably high

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unemployment rates in the region and the fact that, despite intensifying efforts to improve governance in the region, there are still illicit channels and demand for the rich minerals and other natural resources (e.g. timber) found in the region.

Political risk insurance along with employing responsible investment best practices (including the active engagement of the local communities) have been found by companies in the region to be important risk mitigation methodologies and tools to practice and adhere to.

In addition to exploring the dynamic opportunities for private sector investment that are emerging in this region, this publication aims to provide confirmation to those already on the ground that there have been and continue to be significant, lucrative, and regionally beneficial investment opportunities to pursue, and serve as a bit of a compass for the uninitiated to help guide them to resources, sectoral opportunities, locally based prospective business partners, and to key government authorities who can help them develop and pursue their investment ambitions in the Great Lakes Region.

Currently, Africa is regarded, along with Asia, as one of the world’s leading merging markets, and within this market, the Great Lakes Region, is emerging as one of the leading investment destinations – because of its relatively unchartered waters nature. High risks are offering high reward and investors in the region – and indeed the continent – have stated that for those with operations on the ground, the continent, and the GLR, are the most attractive investment regions on the horizon.

Furthermore, beyond providing sector overviews of the seven sectors mentioned above, and profiles of the thirteen countries of the GLR, this publication also provides portraits of selected illustrative projects to suggest the types of opportunities that exist in the region. Also, an important supportive component of this publication involves the provision at the end of the guide of selected regional, private sector and government resources that have been identified because of the strategic involvement of their peacekeeping work, regional integration support, sectoral work, financing role and/or investment promotion role.

Through the publication of this guide and the convening of a conference to promote private sector investment in the Great Lakes, it is hoped that the increased exposure and promotion of investment opportunities in the region will help stimulate economic development, create value chain opportunities for SMEs, absorb the growing number of young graduates in the region and help those diligently working to forge increased peace, security and cooperation in the region to achieve their aims.

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The African Great Lakes Region is an emerging economic region comprised of the 12 member states of the International Conference on the Great Lakes Region and South Africa, who are all signatories of the 2013 Peace, Security and Cooperation Framework (PSCF)1. With an aggregate population of 370 million people (roughly the same size as the United States of America) and an aggregate GDP of more than US$1 trillion, the region represents an attractive consumer, trade and investment market.

Chart 2. Economic Snapshot of the PSCF Great Lakes Region

No. Country Population Area (sq. km) GOP (PPP) (in US$) GOP (OER) GOP per capita

1 Angola 24,000,000 1,246,700 $131,800,000,000 $127,000,000,000 $5,291

2 Burundi 10,395,931 27,830 $5,750,000,000 $2,676,000,000 $600

3 CAR 5,277,959 622,984 $3,336,000,000 $2,050,000,000 $700

4 Congo 4,662,446 342,000 $20,260,000,000 $14,250,000,000 $4,800

5 DRC 77,433,744 2,344,858 $29,390,000,000 $18,560,000,000 $400

6 Kenya 45,010,056 580,367 $79,900,000,000 $45,310,000,000 $1,800

7 Rwanda 12,337,138 26,338 $16,370,000,000 $7,700,000,000 $1,500

8 South Africa 48,375,645 1,219,090 $595,700,000,000 $353,900,000,000 $11,500

9 South Sudan 11,562,695 644,329 $14,710,000,000 $11,770,000,000 $1,400

10 Sudan 35,482,233 1,861,484 $89,970,000,000 $52,500,000,000 $2,600

11 Tanzania 49,639,138 947,300 $79,290,000,000 $31,940,000,000 $1,700

12 Uganda 35,918,915 241,038 $54,370,000,000 $22,600,000,000 $1,500

13 Zambia 14,638,505 752,618 $25,470,000,000 $22,240,000,000 $1,800

Total 369,822,511 10,829,106 $1,146,316,000,000 $709,496,000,000 $2,815.38

Notes: PPP – Purchasing Power Parity; OER – Official Exchange RateSource: author’s compilation, 2014 US CIA Factbook

Chapter 1.

The Market: An Overview of the Great Lakes Region

Figure 3. The Great LakesSize from Largest to Smallest• LakeVictoria• LakeTanganyika• LakeMalawi• LakeTurkana• LakeAlbert• LakeRukwa• LakeMweru• LakeKivu• LakeEdward

Legend of Selected Great LakesA – AlbertY – KyogaE – EdwardK – KivuV – VictoriaT – TanganyikaM – Malawi

Source: Wikipedia

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Geographically, the African “Great Lakes Region” gets its name from the fact that it surrounds a series of lakes in East and Central Africa that are in and around the East African Rift Valley. These “Great Lakes” are divided among three different catchments (river basins) and include Lake Tanganyika, Lake Victoria, Lake Albert, and Lake Edward. Other Lakes that round out the system include Lake Kivu, Lake Turkana, Lake Rukwa, Lake Malawi and Lake Mweru.

For many institutions that invest and support development in the Great Lakes Region, the key countries of focus around the DRC are Burundi, Rwanda, Tanzania and Uganda. Beyond, this grouping of countries, there are the other DRC-contiguous countries of Angola, the Central African Republic, the Republic of the Congo, South Sudan and Zambia. On the outskirts of the region there are the strategic port/ logistics countries of Kenya, Sudan, and the PSC signatory, and fellow Southern African Development Community member state, of South Africa – a long time economic and peacekeeping negotiating influence in the region. Figure 4. Signatories of the Peace, Security and Cooperation Framework

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1 Sudan2 South Sudan3 Central African Republic4 Uganda5 Rwanda6 Burundi7 Kenya8 Tanzania9 Dem. Rep. of Congo10 Congo11 Angola12 Zambia13 South Africa

Source author’s compilation map

While this Investment Opportunities Brief profiles investment opportunities across the region, as its mission is to promote investment that will promote regional integration and economic cooperation among the 12 International Conference on the Great Lakes Region (ICGLR) members and South Africa – the publication promotes investment in concentric circles outward from the Democratic Republic of the Congo.

Figure 5: The DRC and the Great Lakes Region Countries

The Democratic Republic of Congo

Rwan

da

, Burundi, Tanzania, UgandaAngo

la, C

AR, T

he Republic of Congo, South Sudan, Zambia

Kenya, South Africa, Sudan

Source: author’s illustration

Tanzania (Dar es Salaam) and Kenya (Mombasa) are the principal port access countries for the majority of the countries in the region, and strategically important as six of the thirteen PSC member countries (Burundi, Central African Republic, Rwanda, South Sudan, Uganda and Zambia) are landlocked states. The Great Lakes do, however, provide some water transportation avenues for Burundi, Rwanda, Uganda and Zambia. The River Congo in the Democratic Republic of Congo is also an important water transport corridor in the region.

Although coastal countries, Angola, Congo, and DRC have ports, they have relatively poor transport infrastructure in their country’s interiors. Indeed, one of the key challenges, and current areas of focus among all of the ICGLR member states (i.e. in all of the countries in the region, except for South Africa) is the development of inter-regional transport infrastructure, particularly roads and rail development.

Nine of the thirteen countries in the region have stock exchanges, although save for the Johannesburg Stock Exchange (400 companies, $998 billion market capitalization) they are relatively small. Eight of the signatories have sovereign credit ratings (all except for Burundi, CAR, South Sudan, Sudan and Tanzania) and ten have designated Public-Private-Partnership Units in government (all except CAR, Congo and South Sudan).

Of note in terms of domestic resource mobilization capacity, a number of the countries in the region (Kenya, South Africa, Uganda and Sudan) also receive significant remittance flows from migrant workers and diasporans of their respective countries.

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Chart 3. Remittances

Country 2009 2010 2011 2012

Angola 162,359 17,972,037 204,751,000 45,000,000

Burundi 28,232,148 34,498,930 45,463,177 46,433,649

CAR - - - -

Congo - - - -

DRC 19,500,000 15,700,000 114,600,000 12,199,488

Kenya 631,460,883 685,757,272 934,149,203 1,213,552,387

Rwanda 92,617,967 106,467,379 174,255,508 182,405,277

South Africa 862,051,631 1,069,571,381 1,158,421,806 1,084,655,276

South Sudan - - - -

Sudan 2,135,313,455 1,100,122,399 441,931,224 401,482,587

Tanzania 39,827,094 55,030,882 78,387,435 67,383,205

Uganda 781,097,319 770,789,132 816,231,811 732,841,523

Zambia 41,260,000 43,700,000 46,300,000 72,864,000

Source: ABG Compilation, World Bank

The region also includes, the four fastest (Dar es Salaam, Nairobi, Kinshasa and Luanda), and eight of the top 20, fastest growing African cities as projected by UN-Habitat over the next 11 years. Of particular note is the fact that Dar es Salaam, Nairobi, Kinshasa and Luanda are also among the fastest growing cities in the world.

Chart 4. Growth of African Cities

City Country 2005 2010 2015 2020 2025 2010-2015

Dar es Salaam Tanzania 2,680 3,349 4,153 5,103 6,202 85,2

Nairobi Kenya 2,814 3,523 4,303 5,192 6,246 77,3

Kinshasa DRC 7,106 8,754 10,688 12,788 15,041 71,8

Luanda Angola 3,533 4,772 6,013 7,080 8,077 69,3

Ekurhuleni South Africa 2,824 3,202 3,380 3,497 3,614 12,9

Durban South Africa 2,638 2,879 3,026 3,133 3,241 12,6

Johannesburg South Africa 3,263 3,670 3,867 3,996 4,127 12,5

Cape Town South Africa 3,091 3,405 3,579 3,701 3,824 12,3

Source: United Nations Human Settlements Programme

Comparatively, the largest economies of the region are South Africa, Angola, Sudan, Kenya and Tanzania, with South Africa, the Democratic Republic of Congo, and Zambia constituting the major mining countries, South Africa, Kenya, Tanzania and Zambia constituting the major agriculture and agribusiness countries, and Angola, Congo, South Sudan and Sudan being the major oil producing nations.

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Chart 5. Great Lakes Region Comparative Economic Standing

Countries Land-locked

Port(s) Stock Exchange (2012) Credit Rating (S&P)

FDI Level (USD billions in 2012)

PPP Unit

Angola No Port Luanda, Port Lobito, Port Namibe

No BB-Stable 1.937 The Ministerial Commission for Evaluation of Public-Private Partnerships

Burundi Yes Port Bujumbura No No 0.009 Ministry of Good Governance and Privatization

CAR Yes None Member of BVMAC* No 0.619 No

Congo No Port Point Noire Member of BVMAC* B+ Stable 21.012 No

DRC No Port Matadi, Port Boma, Port Banana

No B-Stable 4.488 DRC Investment Promotion Agency

Kenya No Port Mombasa, Port Lamu, Port Malindi

Nairobi Securities Exchange; MC: $15.9 billion; NoC: 60

B+ Stable 2.876 Ministry of Finance

Rwanda Yes None Rwanda Stock Exchange; MC: $2.05 billion (2013); NoC: 5

B Stable 0.743 Ministry of Public Works

South Africa No Port Durban, Port Cape Town, Port Elizabeth, Port Richards Bay

Johannesburg Stock Exchange, MC: $998.34 billion; NoC: 400

BBB+ Stable 138.964 The South African National Treasury

South Sudan

Yes None No No - No

Sudan No Port Sudan, Port Digna Khartoum Stock Exchange; MC: $2.2 billion; NoC: 59

No - Ministry of Investment

Tanzania No Port Dar es Salaam, Port Tanga, Port Mtwara

Dar es Salaam Stock Exchange; MC: $8.4 billion; NoC: 17

No 9.278 Ministry of Finance

Uganda Yes Port Bell Uganda Securities Exchange; MC: $5.88 billion; NoC: 15

B Stable 6.47 Ministry of Finance, Planning, and Economic Development

Zambia Yes None Lusaka Stock Exchange; MC: $9.4 billion; NoC: 20

B+ Stable 10.927 Ministry of Finance and National Planning

Sources: www.worldportsource.com; State of African Stock Markets, 2013; www.standardandpoors.com; UNCTADLegend: NoC= Number of Companies; MC=Market Capitalization; BVMAC=Bourse des Valeurs Mobilières de l’Afrique Centrale

All of the countries in the Great Lakes Region are focused on achieving greater regional integration through a number of Regional Economic Communities that intersect the thirteen states. The East African Community, comprised of Burundi, Kenya, Rwanda, Tanzania and Uganda arguably comprise the closest knit of the eight regional economic communities that overlap with the Great Lakes Region. However, the Common Market of East and Southern Africa (COMESA-7 GLR member states), the Economic Community of Central African States (ECCAS – 5 GLR member states), the Southern African Development Community (SADC – 5 GLR member states) and the Inter-Governmental Agency for Development (IGAD – 4 GLR member states) are also very important connectors within the region and all have “Great Lakes” regional integration fostering mandates. Additionally, as these Regional Economic Communities overlap, there is the potential as they seek to rationalize their structures for the creation of even larger integrated bodies. The on-going development of the Tripartite Free Trade Area of the EAC, COMESA and SADC present such an example.2

Originally established in 1976 and then reconstituted in 2007, the Economic Community of the Great Lakes (ECGL) or CEPGL (Communauté Économique des Pays des Grand Lacs) – as the organization is known in French – is also a very important sub-regional organization in the Great Lakes Region peace process as its members include Burundi, the Democratic Republic of Congo and Rwanda.

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Chart 6. Regional Economic Communities within the Great Lakes Region

City CEMAC CEPGL CEN-SAD COMESA EAC ECCAS IGAD SADC

Angola

Burundi

CAR

Congo

DRC

Kenya

Rwanda

South Africa

South Sudan

Sudan

Tanzania

Uganda

Zambia

Source: Author’s Compilation

Chart 7. Resources, Markets, Youth

Agriculture Mining Oil and Gas Tourism Infrastructure Export markets Median Age/ % Below 24 Years

Ang

ola Bananas, Sugarcane, Coffee, Sisal,

Maize, CassavaTobacco, Vegetables, Plantain, Livestock, Fish, Forest products

Diamonds, Iron ore, Phosphates, Copper

Feldspar, Gold, Bauxite, Uranium

Oil accounts for 46% of GDP, 95% of exports

Emerging focus on domestic tourism, beaches, eco tourism

Lobito Corridor – rail

Crude oil, Diamonds, Refined petroleum products, Coffee, Timber,

China – 46.3%; Portugal – 19.5%; US – 7.7%; South Africa – 7.1%; Brazil – 5.9%

17.9/ 63.7%

Buru

ndi Agriculture accounts for 30% of GDP,

Coffee, Tea, Cotton, Sorghum, FishMaize, Sweet potatoes, Bananas, Cassava, Beef, Dairy, Hides

Nickel, Uranium, Cobalt, Copper, Platinum, Vanadium

Gold, Tin, Tungsten, Limestone, Kaolin, Rare Earth oxides

Emerging, need for hotels, lake front development

Coffee, Tea, Sugar, Cotton, Hides Switzerland – 23.9%; UK – 12.9%; Belgium – 7.4%; Pakistan – 7.4%; DRC – 7.4%; Uganda – 5.6%; Germany – 5.2%; China – 4.9%; Egypt – 4.7%

17/ 65.0%

CA

R

Agriculture accounts for 56.6% of GDP, Cotton, Coffee

Tobacco, Cassava, Yams, Millet, Maize, Bananas, Timber

Gold, Diamonds, Iron, Uranium Oil exploration near Chad border underway

Diamonds, timber, cotton, coffee Belgium – 31.7%; China – 27.9%; DRC – 7.8%; Indonesia – 5.2%; France – 4.5%

19.4/ 60.7%

Cong

o Cassava, Sugar, Rice, Corn, Peanuts Vegetables, Coffee, Cocoa, Palm Oil, Forest products

Iron Ore, Gold, Manganese Oil and Gas Industry = 73.9% of GDP

Emerging, eco-tourism Petroleum, Lumber, Plywood, Sugar, Cocoa, Coffee, Diamonds

China – 39%; US – 13%; France – 9.5%; Australia – 8.8%; Netherlands – 6.8%; Spain – 5.3%; India – 5.2

19.8/ 58.8%

DRC

Agriculture = 44.3% of GDP, Coffee, Sugar, Palm Oil, Rubber, Tea

Cotton, Bananas, Plantains, Peanuts, Root crops, Corn, Fruits, Wood

Copper, Cobalt, Gold, Diamonds, Coltan, Zinc, Tin, Tungsten

Uranium, Silver, Tantalum, Coal, Niobium, Manganese

Oil Gorillas, Eco-tourism Diamonds, Copper, Gold, Cobalt, Wood Products, Crude oil, Coffee

China – 54.3%; Zambia – 22.6%; Belgium – 5.7% 17.9/ 64.5%

Keny

a Agriculture accounts for 29.3% of GDP, Tea, Coffee, Corn, Pork

Wheat, Sugarcane, Fruit, Vegetables, Dairy, Beef, Fish, Poultry

Limestone, Gem stones, Zinc, Gypsum, Diatomite

Refined Petroleum products

Eco TourismBeach resorts

Kisumu Sea PortLAPSSET

Tea, Horticulture Products, Coffee, Petroleum products, Fish, Cement

Uganda – 10.3%; Tanzania – 10%; Netherlands – 7.7%; UK – 7.2%; US – 6.3%; Egypt – 4.8%; DRC – 4.4%

17.9/ 60.8%

Rwan

da 90% of population engaged in agriculture, Accounts for 31.9% of GDP

Bananas, Beans, Sorghum, Potatoes, Livestock, Coffee, Tea

Coltan, Cassiterite Eco tourism Coffee, Tea, Hides, Tin ore Kenya – 30.5%; DRC – 12.2%; China – 12.1%; Malaysia – 10.7%; US – 5.8%; Swaziland – 4.9%

18.7/ 61.0%

Sout

h A

frica

Maize, Wheat, Sugarcane, Fruits, Vegetables

World’s No.1 producer of Platinum, Gold, Chromium, also Coal

Iron ore, Nickel, Tin, Uranium, Gem diamonds, Phosphates

Eco TourismBeach resortsMICE

Gold, Diamond, Platinum, Other metals, Machinery, Equipment

China – 11.8%; Germany – 10.1%; Saudi Arabia – 7.7%; US – 7.4%; Japan – 4.6%; India – 4.5%

17.9/ 48.5%

Sout

h Su

dan Sorghum, Maize, Rice, Millet, Wheat,

Gum Arabic, PeanutsFruits, Sweet potatoes, Cotton, Cassava, Sesame seeds, Cattle, Sheep

Gold Diamonds Limestone, Copper, Chromium ore

Tungsten, Zinc, Silver Oil LAPSSET Oil China – 72%; Japan – 21%; US – 6% 16.8/ 65.7%

Suda

n Agriculture accounts for 80% the workforce, Gum Arabic, Cotton, Groundnuts, Sorghum, Millet

Wheat, Sugar cane, Cassava, Fruits, Sweet Potatoes, Sesame seeds, Livestock

Gold, small reserves of Iron ore Copper, Chromium ore, Zinc, Tungsten

MicaSilver

Crude oil Gold, Oil and petroleum products, Cotton, Sesame, Livestock, Groundnuts, Gum Arabic, Sugar

UAE – 63.2%; Saudi Arabia – 9.2%; Ethiopia – 5.3% 19/ 61.1%

Tanz

ania Coffee, Sisal, Tea , Cotton, Cashew

nuts, Tobacco, ClovesMaize, Wheat, Cassava, Bananas, Fruits, Vegetables, Livestock

Tin, Phosphates, Iron ore, Diamonds, Gemstones, Gold

Crude oilGas

Eco tourismBeach Resorts

Gold, Coffee, Cashew nuts, Manufacturers, Cotton

India – 15.2%; China – 11.1%; Japan – 6.2%; Germany – 5.1%; UAE – 4.8%

17.4/ 64.1%

Uga

nda Agriculture accounts for 80% of

the workforce, Coffee, Tea, Cotton, Tobacco, Cassava, Fish

Potatoes, Maize, Millet, Pulses, Cut Flowers, Beef, Goat meet, Dairy, Poultry

Small deposits of Copper,Gold, Cobalt, Limestone

Recently discovered oil Coffee, Fish, Tea, Cotton, Flowers, Horticultural Products, Gold

Kenya – 12.3%; Rwanda – 10.3%; UAE – 10.2%; DRC – 9.4%; Netherlands – 6.1%; Germany – 5.6%; Italy – 4.4%

15.5/ 69.9%

Zam

bia

Maize, Sorghum, Rice, Groundnuts, Sunflower Seeds, Vegetables

Flowers, Tobacco, Cotton, Sugarcane, Cassava, Coffee, Cattle

Copper, accounts for 70% of export earnings

Eco tourism Copper, Cobalt, Electricity, Tobacco, Flowers, Cotton, Ores, Dairy, Edible products, Copper wire, Sugar, Natural honey

China – 43.4%; South Africa – 7.2%; DRC – 6.7%; South Korea – 5.4%; India – 4.7%; UAE – 4.3%; Egypt – 4.1%

16.7%/ 66.2%

Source: author’s compilation, CIA Factbook 2014

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Chart 7. Resources, Markets, Youth

Agriculture Mining Oil and Gas Tourism Infrastructure Export markets Median Age/ % Below 24 Years

Ang

ola Bananas, Sugarcane, Coffee, Sisal,

Maize, CassavaTobacco, Vegetables, Plantain, Livestock, Fish, Forest products

Diamonds, Iron ore, Phosphates, Copper

Feldspar, Gold, Bauxite, Uranium

Oil accounts for 46% of GDP, 95% of exports

Emerging focus on domestic tourism, beaches, eco tourism

Lobito Corridor – rail

Crude oil, Diamonds, Refined petroleum products, Coffee, Timber,

China – 46.3%; Portugal – 19.5%; US – 7.7%; South Africa – 7.1%; Brazil – 5.9%

17.9/ 63.7%

Buru

ndi Agriculture accounts for 30% of GDP,

Coffee, Tea, Cotton, Sorghum, FishMaize, Sweet potatoes, Bananas, Cassava, Beef, Dairy, Hides

Nickel, Uranium, Cobalt, Copper, Platinum, Vanadium

Gold, Tin, Tungsten, Limestone, Kaolin, Rare Earth oxides

Emerging, need for hotels, lake front development

Coffee, Tea, Sugar, Cotton, Hides Switzerland – 23.9%; UK – 12.9%; Belgium – 7.4%; Pakistan – 7.4%; DRC – 7.4%; Uganda – 5.6%; Germany – 5.2%; China – 4.9%; Egypt – 4.7%

17/ 65.0%

CA

R

Agriculture accounts for 56.6% of GDP, Cotton, Coffee

Tobacco, Cassava, Yams, Millet, Maize, Bananas, Timber

Gold, Diamonds, Iron, Uranium Oil exploration near Chad border underway

Diamonds, timber, cotton, coffee Belgium – 31.7%; China – 27.9%; DRC – 7.8%; Indonesia – 5.2%; France – 4.5%

19.4/ 60.7%

Cong

o Cassava, Sugar, Rice, Corn, Peanuts Vegetables, Coffee, Cocoa, Palm Oil, Forest products

Iron Ore, Gold, Manganese Oil and Gas Industry = 73.9% of GDP

Emerging, eco-tourism Petroleum, Lumber, Plywood, Sugar, Cocoa, Coffee, Diamonds

China – 39%; US – 13%; France – 9.5%; Australia – 8.8%; Netherlands – 6.8%; Spain – 5.3%; India – 5.2

19.8/ 58.8%

DRC

Agriculture = 44.3% of GDP, Coffee, Sugar, Palm Oil, Rubber, Tea

Cotton, Bananas, Plantains, Peanuts, Root crops, Corn, Fruits, Wood

Copper, Cobalt, Gold, Diamonds, Coltan, Zinc, Tin, Tungsten

Uranium, Silver, Tantalum, Coal, Niobium, Manganese

Oil Gorillas, Eco-tourism Diamonds, Copper, Gold, Cobalt, Wood Products, Crude oil, Coffee

China – 54.3%; Zambia – 22.6%; Belgium – 5.7% 17.9/ 64.5%

Keny

a Agriculture accounts for 29.3% of GDP, Tea, Coffee, Corn, Pork

Wheat, Sugarcane, Fruit, Vegetables, Dairy, Beef, Fish, Poultry

Limestone, Gem stones, Zinc, Gypsum, Diatomite

Refined Petroleum products

Eco TourismBeach resorts

Kisumu Sea PortLAPSSET

Tea, Horticulture Products, Coffee, Petroleum products, Fish, Cement

Uganda – 10.3%; Tanzania – 10%; Netherlands – 7.7%; UK – 7.2%; US – 6.3%; Egypt – 4.8%; DRC – 4.4%

17.9/ 60.8%

Rwan

da 90% of population engaged in agriculture, Accounts for 31.9% of GDP

Bananas, Beans, Sorghum, Potatoes, Livestock, Coffee, Tea

Coltan, Cassiterite Eco tourism Coffee, Tea, Hides, Tin ore Kenya – 30.5%; DRC – 12.2%; China – 12.1%; Malaysia – 10.7%; US – 5.8%; Swaziland – 4.9%

18.7/ 61.0%

Sout

h A

frica

Maize, Wheat, Sugarcane, Fruits, Vegetables

World’s No.1 producer of Platinum, Gold, Chromium, also Coal

Iron ore, Nickel, Tin, Uranium, Gem diamonds, Phosphates

Eco TourismBeach resortsMICE

Gold, Diamond, Platinum, Other metals, Machinery, Equipment

China – 11.8%; Germany – 10.1%; Saudi Arabia – 7.7%; US – 7.4%; Japan – 4.6%; India – 4.5%

17.9/ 48.5%

Sout

h Su

dan Sorghum, Maize, Rice, Millet, Wheat,

Gum Arabic, PeanutsFruits, Sweet potatoes, Cotton, Cassava, Sesame seeds, Cattle, Sheep

Gold Diamonds Limestone, Copper, Chromium ore

Tungsten, Zinc, Silver Oil LAPSSET Oil China – 72%; Japan – 21%; US – 6% 16.8/ 65.7%

Suda

n Agriculture accounts for 80% the workforce, Gum Arabic, Cotton, Groundnuts, Sorghum, Millet

Wheat, Sugar cane, Cassava, Fruits, Sweet Potatoes, Sesame seeds, Livestock

Gold, small reserves of Iron ore Copper, Chromium ore, Zinc, Tungsten

MicaSilver

Crude oil Gold, Oil and petroleum products, Cotton, Sesame, Livestock, Groundnuts, Gum Arabic, Sugar

UAE – 63.2%; Saudi Arabia – 9.2%; Ethiopia – 5.3% 19/ 61.1%

Tanz

ania Coffee, Sisal, Tea , Cotton, Cashew

nuts, Tobacco, ClovesMaize, Wheat, Cassava, Bananas, Fruits, Vegetables, Livestock

Tin, Phosphates, Iron ore, Diamonds, Gemstones, Gold

Crude oilGas

Eco tourismBeach Resorts

Gold, Coffee, Cashew nuts, Manufacturers, Cotton

India – 15.2%; China – 11.1%; Japan – 6.2%; Germany – 5.1%; UAE – 4.8%

17.4/ 64.1%

Uga

nda Agriculture accounts for 80% of

the workforce, Coffee, Tea, Cotton, Tobacco, Cassava, Fish

Potatoes, Maize, Millet, Pulses, Cut Flowers, Beef, Goat meet, Dairy, Poultry

Small deposits of Copper,Gold, Cobalt, Limestone

Recently discovered oil Coffee, Fish, Tea, Cotton, Flowers, Horticultural Products, Gold

Kenya – 12.3%; Rwanda – 10.3%; UAE – 10.2%; DRC – 9.4%; Netherlands – 6.1%; Germany – 5.6%; Italy – 4.4%

15.5/ 69.9%

Zam

bia

Maize, Sorghum, Rice, Groundnuts, Sunflower Seeds, Vegetables

Flowers, Tobacco, Cotton, Sugarcane, Cassava, Coffee, Cattle

Copper, accounts for 70% of export earnings

Eco tourism Copper, Cobalt, Electricity, Tobacco, Flowers, Cotton, Ores, Dairy, Edible products, Copper wire, Sugar, Natural honey

China – 43.4%; South Africa – 7.2%; DRC – 6.7%; South Korea – 5.4%; India – 4.7%; UAE – 4.3%; Egypt – 4.1%

16.7%/ 66.2%

Source: author’s compilation, CIA Factbook 2014

Collectively, the countries of the region constitute a very wealthy region from the stand point of natural resources (minerals and oil and gas), arable land for agriculture, water abundance for irrigation and energy generation, touristic destinations, a youthful population and growing labor force. Generally, major challenges in a number of countries in the region still include the existence of poor transport infrastructure (particularly tarred roads and standard gauge railway systems), inadequate electrification, inefficient border posts and markets that are not adequately inclusive to create employment and value chain expansion opportunities for the potential labor force and SME class.

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As a continent over the past decade Africa has emerged as one of the fastest growing regions, economically, in the world. A number of the catalysts for this growth have been countries found within the Great Lakes Region, including Angola, Rwanda, Tanzania, Congo and Zambia. In exploring the business case for investment in the Great Lakes Region, this backdrop of aggregate continental economic growth is important to remember.

Chart 8: Africa’s Fast Growing Economies2001-20101 2011-20152

Angola 11.1 China 9.5

China 10.5 India 8.2

Myanmar 10.3 Ethiopia 8.1

Nigeria 8.9 Mozambique 7.7

Ethiopia 8.4 Tanzania 7.2

Kazakhstan 8.2 Vietnam 7.2

Chad 7.9 Congo 7.0

Mozambique 7.9 Ghana 7.0

Cambodia 7.7 Zambia 6.9

Rwanda 7.6 Nigeria 6.8

Source: the Economist; IMF

Figure 6: GDP growth, unweighted annual average, %

* Excluding countries with less than 10m populationIraq and Afghanistan 12010 estimate 2Fore

Source: the Economist; IMF

In the Great Lakes Region, specifically, economic growth, investment and business opportunity has been driven by seven key pillars:

1) Pillar 1: Tremendous Natural Resource Reserves

At the heart of the Great Lakes Region is the economic sleeping giant, the Democratic Republic of Congo. With more than 70 million inhabitants and a geographic area larger than all of Western Europe combined, the DRC offers rich soil and thousands of hectares of arable land. Given its vast mineral resource reserves the nation has also been cited as a “geological scandal”. Copper, cobalt, gold, diamonds,

Chapter 2.

Why Invest in the Great Lakes Region?

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coltan, zinc, tin, tungsten, uranium, silver, coal, niobium and manganese are all among the mineral resources found in the DRC. However, the DRC is not the only mining powerhouse in the region as Zambia (copper), Tanzania (gold, tin, phosphates, diamonds, iron and gemstones), and Angola (diamonds, copper, iron ore, bauxite, uranium and phosphates) are also endowed with significant mineral reserves.

In addition to these nations, the country with the largest and most sophisticated minerals asset base on the continent, South Africa, is also part of the expanded Great Lakes Region and already integrated into a number of global value chains as a minerals resource supplier. Furthermore, South Africa has also become a major supplier of best-of-breed technologies in the global mining sector given the innovative products that have been developed in the country over the years.

Figure 7. South Africa’s Share of Global Mineral Resources

Source: USGS.CoM/DMR

An illustration of the concentration of Africa’s mineral resources in the Great Lakes Region, shows that oil, gold, diamonds, iron, copper, cobalt, manganese and uranium are all among the very valuable minerals found in the region.

Figure 8. Mineral Wealth in the Great Lakes Region

French-speaking

Portuguese-speaking

English-speaking

Source: http://www.grida.no/publications/rr/gorilla

The rapid growth in demand for these resources particularly from China and India, has led to a global commodity trade boom and this has benefitted Africa generally, and many of the countries of the Great Lakes Region, specifically. Additionally, demand for even lesser known mineral resources such as Coltan, from which Tantalum is extracted, to make tantalum capacitors for electronic equipment such as mobile phones, DVD players, video game systems and computers, is also driving interest in the region’s mining investment opportunities.

In addition to the region’s mineral wealth, the countries that fall within Central Africa (the Central African Republic, the Republic of Congo and the Democratic Republic of Congo) also encompass the Tropical African forest which includes 18 per cent of the world total and covers over 3.6 million square kilometers of land in West, East and Central Africa. 74% of this forest land or 2.69 million square kilometers (74%) is found in Central Africa.

2) An Abundance of Arable Land and Growing Food Demand

The continent of Africa has 733 million hectares of arable land or 27.4 per cent of the world’s total, compared with 628 million hectares in Asia and 570 million hectares in Latin America. Agriculture in Africa is thus a major contributor to the economies of most of the continent’s countries and accounting for more than 25 per cent of their GDPs and employing roughly 70 per cent of their labor force3. Of the 30,244,049 square kilometers of the continent, one third of it – or 10,829,106 square kilometers – is comprised of the states that make up the Great Lakes Region. Thus, by extrapolation, the region comprises roughly one third of the world’s remaining arable land or 244 million hectares of arable land.

However, despite the potential the continent has for agriculture, Africa remains a net food importer. With the African population expected to double to two billion by 2050 and the urban population growing rapidly, it is becoming more and more vital for Africa to increase its agricultural production and feed itself. In 2013, African nations in aggregate were importing more than US$50 billion of food alone.

Addressing this food import bill and seeking to support and encourage domestic food production has led to increased public investment and increased efforts to mobilize private sector investment in Africa over the past five years. The key areas of intervention that have been identified as impediments to increased food security are: a) small farm sizes and lower economies of scale (a typical farm size is 1-5 hectares); 2) inadequate access to and use of fertilizer and improved seeds (fertilizer use in Africa is only 125 gm/

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ha compared with the world average of 1,020 gm/ha); 3) antiquated labor intensive farming techniques (on average the continent use of tractors was only 13 tractors/ 100 km2 of arable land in comparison to the world average of 200 tractors/ 100km2); and 4) poor sector related infrastructure – storage, energy, transport infrastructure.

Since 2006, when the African Heads of State decreed it at their African Union Food Security Summit held in Abuja, Nigeria, enhancing food production at continental and sub-regional levels has been hailed as a continental priority.

Figure 9. Africa’s Land Potential

Source: FAO

3) A Youthful, Fast Growing, Urbanizing, Middle Class Population

Over a third of Africa’s 1 billion inhabitants currently live in urban areas, but by 2030 that proportion will have risen to 50%. According to UN-HABITAT, the United Nations Agency for Human Settlements, the population of some cities in Africa is set to swell by up to 85% in the next 15 years. Kinshasa, the largest city within the Great Lakes Region is expected to expand to 15 million people by then, and trail only Lagos in Nigeria in terms of city population size on the entire African continent. In fact, four of the five fastest growing cities, and seven of the fastest growing 18 countries are found in the Great Lakes Region.

The population in Africa is also increasingly moving into the global definition of middle class and 30% of the continent’s population give the continent $680 billion in purchasing power. This increased disposable income, which is fueling

consumer growth and the sale of everything from consumer goods, to automobiles, to housing and construction. This improving per capita purchasing power is also supporting the ICT sector, fueling the above-mentioned increasing demand for food products, and driving an unprecedented expansion in the area of continental travel and tourism.

Figure 10. Africa’s Growing Cities

Source: UN-HABITAT

By 2030, Africa’s purchasing power, according to the African Development Bank, will grow 300% and equal US$2.2 trillion. Demographically, an equally important trend from the vantage point of the Great Lakes Region, is that based on the forecast growth in the national working population in Uganda, Tanzania, Angola, Kenya ad South Africa, the region is forecast to be a leading region in terms of the working age population – a resource that can be harnessed to fuel the region’s manufacturing, processing and value addition ambitions.

Importantly, Africa’s youth population is not only growing rapidly, it is also getting better educated. Based on recent trends, 59% of 20-24 year olds will have had secondary education in 2030, compared to 42% today. This will translate into 137 million 20-24 year olds with secondary education and 12 million with tertiary education in 2030. It is also noteworthy, that the gap between women enrolled in secondary school and boys is also narrowing.

Although significant quality gaps remain, these trends offer an unrivalled opportunity for economic and social development if the talents of this swiftly increasing reservoir of human capital are harnessed and channeled towards the productive sectors of the economy.

Largest 10 countries by land area

Largest 10 countries by population land

Countries with largest land area and pastures pastoral land

Largest 10 countries by proportion of arable land

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Figure 11: Greater Parity in the Education of Boys and Girls

Source: Donna Clifton and Alexandra Hervish, The World’s Youth 2013 Data Sheet (Washington, DC: PRB,2013)

With almost 200 million people aged between 15 and 24, Africa also has the youngest population in the world – and the projected number of young people in Africa will double by 2045. Between 2000 and 2008, Africa’s working age population (15-64 years) grew from 443 million to 550 million; an increase of 25%.

Figure 12. Demographic Change in Africa through 2050

Source: HSBC

According to the World Bank, in annual terms this is a growth of 13 million, or 2.7% per year. If this trend continues, McKinsey’s Global Institute forecasts that the continent’s labor force will be 1 billion strong by 2040, making it the largest in the world, surpassing both China and India.

Figure 13. Africa Increasingly Educated Youth (20-24 year-old cohorts by education, 2000-2030)

Source: World Bank EdStats, African Economic Outlook, 2012

4) Expanding Export Markets, Trading Partners, and Diversified Development Assistance Partners

One of the most important catalysts of economic growth and expansion in Africa, generally, and the Great Lakes Region specifically, has been the rise of South-South Trade and Investment over the past ten years and the positive economic influence on the region that the economic partnership with Brazil, India and China have brought to the continent. And these have not been the only relationships that have, in addition to offering new markets and sources of both development assistance and investment capital, changed global perceptions toward the recognition that Africa can be a desirable business destination. Saudi Arabia, Turkey, South Korea, and Japan have increased their economic interaction with the continent and helped catalyze the sustained GDP growth that has been enjoyed over the past decade.

Figure 14. The Structure of Africa’s South-South Relationships

Forum on China-Africa Cooperation

(2000), Republic of Korea-Africa Forum (2006),

India-Africa Forum (2008), Turkey-Africa Cooperation

(2008)

Formal dialogue platform

For example, Brazil, Cuba,

Kuwait, Malaysia,

Saudi, Arabia, Singapore,

Thailand, United Arab Emirates,

Venezuela (Bolivarian

Republic of )

No formal dialogue platform

Africa-South America Strategic

Partnership (2006)

India-Brazil-South Africa Partnership

(2003)

New Asian-African Strategic

Partnership (2005)

InterregionalTrilateralBilateral

Africa-South Partnerships

Afro-Arab Cooperation

(1977)

Source: UNCTAD

In the 2010 the Economic Development Report on Africa, UNCTAD, noted the growing role that development assistance, provided through “South-South Cooperation”, was playing on the continent.

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Furthermore, China, in particular, has been catalytic in driving the growth of Africa’s economies through its role as a buyer of African raw materials, and increasingly its manufactured products. Indeed in 2009, China surpassed the US as Africa’s number one two-way trading partner with commerce equalling US$ 200 billion by 2012 – $85 billion in exports from China to Africa, and $113 billion in imports from Africa.

A by-product of China’s (and to an extent India’s) voracious interest in Africa is the fact that it created competition for African output and also helped stimulate better pricing for African goods and natural resources, and also led to expanded trade with Africa’s traditional trade partners, the United States and the European Union.

Figure 15. China – Africa Two Way Trade Grows to $200 billion +

Source: Beijing Axis

Indeed, over the period between 2000 – 2009, two way trade between Africa and the United States grew 122% to US$88 billion and with the 27 member states of the European Union it grew 126% to $298.3 billion, while with India it grew 506% to US$34.3 billion and with China it grew 708% to US$93.6 billion. Over the next three years, trade with China more than doubled to roughly US$200 billion.

Figure 16. Increasing Global Trade with Africa

United States2009 trade: $88.2 billion

+122%

European Union2009 trade: $298.3 billion+126% China

2009 trade: $93.6 billion+708%

European Union2009 trade: $298.3 billion+126%United States

2009 trade: $88.2 billion+122%

China2009 trade: $93.6 billion+708%

India2009 trade: $34.3 billion+506%

India2009 trade: $34.3 billion+506%

AfricaAfrica

Source: OECD Development Centre

5) Improving Regional Governance and Business Environment

While admittedly there are a number of areas where further improvement can be made, general improvement in the region’s governance and overall business environment has been an important catalyst for the sustained level of growth and development in the region over the past five years. In terms of the relative economic competitiveness of the countries within the expanded Great Lakes Region, South Africa, Rwanda, Zambia and Kenya have been ranked most competitive within the World Economic Forum’s “Global Competitiveness Index 2013-2014”, while Zambia and Kenya have witnessed the highest competitiveness increases in their rankings between 2012 and 2013.

Chart 9. Expanding Development Partner Relationships in AfricaAfrica’s

share of aid budget (%)

Form of support Conditions imposed Mode of delivery Debt relief

provided

Monitoring mechanism

Traditional donors 35* Mostly grants Policy and non-policy conditions

Increasingly moving away from projects in favor of SWAps and budget support

Yes Peer review by other traditional donors as well as the Mutual Review of Development Effectiveness Report published by the OECD Secretariat and UNEAC

China 30-50 Grants and loans Non-policy conditions Project Yes Forum on China-Africa Cooperation

India 1.5-3.6 Grants and loans Non-policy conditions Project Yes India-Africa Forum Summit

Brazil 27-30 Co-financing, often through triangular cooperation

Non-policy conditions Project Yes

Republic of Korea 15* Grants and loans Non-policy conditions Project Yes Republic of Korea-Africa Forum

Turkey 6* Grants Project No Turkey-Africa Cooperation Summit

Arab countries 11* Grants and loans Project Yes

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Chart 10. Global Competitiveness IndexGCI 2013-2014 GCI 2012-2013

Country Rank Score Rank ChangeSouth Africa 53 4.37 52 -1

Rwanda 66 4.21 63 -3

Zambia 93 3.86 102 9

Kenya 96 3.85 106 10

Tanzania 125 3.50 120 -5

Uganda 129 3.45 123 -6

Angola 142 3.15 n/a n/a

Burundi 146 2.92 144 -2

CAR n/a

Congo n/a

DRC n/a

South Sudan n/a

Sudan n/a

Source: Author’s Compilation, World Economic Forum

Encouragingly, four countries within the region: Rwanda, Burundi, Angola and Zambia are among the world’s fastest reforming nations in terms of efforts being made to improve their Business Regulatory Efficiency.

Chart 11. Top Reformers Globally – Business Regulatory Efficiency Improvement

Distance to Frontier (percentage points)Rank Country 2005 2013 Change Total Reforms

1 Rwanda 37.4 70.5 33.1 34

9 Burundi 33.2 50.6 17.4 21

26 Angola 32.5 44.5 12 9

47 Zambia 54.8 64.8 10 10

Source: World Bank

Furthermore, in the annual Mo Ibrahim Index of African governance, while South Africa (5), Zambia (12), Rwanda (15), Tanzania (17) and Uganda (18) have been ranked among the

top 20 African nations in terms of their overall governance scores (incorporating Safety & Rule of Law, Participation & Human Rights, Sustainable Economic Opportunity, and Human Development), five of the member states rank toward the bottom of the continental survey: Angola (39); Burundi (40); Congo (43); Central African Republic (49) and the Democratic Republic of Congo (51).

Chart 12. Mo Ibrahim Index of African Governance 2013Rank Country Score/100 2012 to 2013 year

change5 South Africa 71.3 0.6

12 Zambia 59.6 8.6

15 Rwanda 57.8 10.9

17 Tanzania 56.9 1.4

18 Uganda 56.0 5.5

21 Kenya 53.6 1.5

39 Angola 44.5 18.1

40 Burundi 43.8 8.8

43 Congo 43.0 8.0

49 CAR 32.7 3.8

51 DRC 31.3 7.3

n/a South Sudan

n/a Sudan

Based on: Safety and Rule of Law, Participation and Human Rights, Sustainable Economic Opportunity and Human Development. Source: ABG Compilation, Mo Ibrahim Foundation

According to the World Bank’s Annual Doing Business Index, Rwanda, South Africa, and Zambia are the highest ranked countries among the PSC member states, ranking within the top 100 countries globally. Overall the countries of the region have been improving as well based upon the World Bank’s Doing Business Index, although the countries in Central Africa (Congo, Democratic Republic of Congo and the Central African Republic) and the three year old nation of South Sudan still have a way to go in terms of the improvement of their overall business climates.

Chart 13. World Bank Doing Business Indicators 2013Country Ease Of

Doing Business

Rank

Starting a Business

Dealing with Construction

Permit

Getting Electricity

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across

Borders

Enforcing Contracts

Resolving Insolvency

Rwanda 32 9 85 53 8 13 22 22 153 40 137

South Africa 41 64 26 150 99 28 10 24 106 80 82

Zambia 83 45 57 152 102 13 80 68 163 120 73

Kenya 129 134 47 166 163 13 98 166 156 151 123

Uganda 132 151 143 178 126 42 115 98 164 117 79

Burundi 140 27 126 161 52 170 34 143 175 177 164

Tanzania 145 119 177 102 146 130 98 141 139 42 134

Sudan 149 131 167 113 41 170 157 108 155 154 89

Angola 179 178 65 170 132 130 80 155 169 187 189

DRC 183 185 90 142 133 159 147 176 171 177 167

Congo 185 182 142 175 164 109 157 183 180 164 142

South Sudan 186 140 171 184 183 180 182 92 187 87 189

CAR 188 177 156 177 141 109 138 188 185 180 189

Source: Author’s Compilation, World Bank

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Indicatively though in regard to the regional integration challenges among the PSC member states, all of the countries rank below the top 100 countries in the world in the “Trading Across Borders” category, and only South Africa, which benefits from the comparatively strong road and rail network of the Southern Africa Development Community region, is higher than 139th (Tanzania) on the global indices.

6) Increasing Focus of Public-Private-Partnerships to Support Needed Infrastructure Development

Over the past decade, momentum has been building to address Africa’s infrastructure need in areas such as transport infrastructure (roads, seaports, airports and rail), energy (generation, transmission and distribution) and telecommunications (wireless telephony, fiber optic backbone development, and networking and switching infrastructure), and areas such as waste management and sanitation. In addition to major regional projects that have been identified by the Regional Economic Communities, which form part of the continental African Union endorsed Programme for Infrastructure Development in Africa (PIDA), there has been significant focus on developing feeder roads, cold chain, warehousing and storage facilities for agriculture and other more nationally relevant infrastructure.

Again a key, non-traditional, catalyst in this area has been the Republic of China which has in a number of instances been willing to take payment in produce or minerals/ petroleum products in exchange for building infrastructure for African nations. Regional countries such as Angola, the Democratic Republic of Congo and South Sudan (to name but a few) have been significant beneficiaries of these transactions.

Figure 17. China in Africa: A Non-Traditional Development Partner

China has mineral rights

China has oil rights

China has both oil and minerals rights

Source: Various: THE BEIJING AXIS Analysis

However, with an annual spend of roughly US$40 billion on infrastructure and a remaining deficit of roughly the same amount, African governments have increasingly been approaching private investors to play catalytic roles in funding and managing infrastructure projects across the continent – and within the Great Lakes Region. From the granting of licenses to run telecommunications systems, to establishing policy frameworks and providing guarantees for the establishment of independent power production contracts, to the offering of concessions to build – operate and transfer water and sanitation systems (i.e. public utilities) as well as joint-venture in commercial agriculture and mining initiatives – these are all areas of increasing opportunity for private sector investment.

In the Great Lakes Region, these public-private-partnership opportunities have really emerged around the corridor projects that are providing land-locked countries in the region, port linkages. An example of this is found in the Northern Corridor project, which is seeking to improve the road artery that runs from Mombasa in Kenya to Kampala in Uganda with an onward spur to Rwanda involving seaport, road, rail and an oil pipeline components. Each component has aspects of the project for which the respective governments (Kenya, Uganda and Rwanda) have sought or are seeking private sector participation. Similarly the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport (LAPSSET) Corridor that runs from Lamu Port in Kenya north to South Sudan and Ethiopia provides both countries with seaport access in the process.

Like the Northern Corridor, the LAPSSET Corridor initiative offers various investment opportunities across multiple sectors, including the transport, energy and communication sectors. The Lobito Corridor project linking the Angola Port of Lobito

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and the seaside city of Benguela with the copper belt region of the Zambia via a railway system that traverses the DRC is another major infrastructure project that is stimulating development in the region. The proposed Great Lakes Southern Corridor Rail project is the least developed of the corridor projects, but portends to open up trade between seven countries in the region if completed (Zambia, Tanzania, Kenya, DRC, Angola, Burundi, Rwanda, and Uganda) as all are along the Great Lakes corridor that the rail line would traverse.

Similarly, the Central Multimodal Transport Corridor involves the upgrading and modernization of over 1,000 kilometres of road and highway connecting Tanzania, Burundi, Rwanda, the DRC and Uganda to facilitate regional trade and improve transportation capacity in the region. A rail module will be implemented in the future to further this corridor’s efficiency.

Lastly, Tanzania has developed an agricultural “corridor”, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) that moves from the port city of Dar es Salaam to the western border of the country near Malawi and has crafted an innovative multi-stakeholder development model with the public sector, the private sector, development partners and several social enterprises. As these projects are developing – with public funding, development finance institution funding, private equity capital, development partner grant funding, trade finance from mineral extraction minded partners – they are fueling growth in the region.

Figure 18. Selected Key African Infrastructure Development Initiatives Offering PPP Opportunities

Source: http://mondediplo.com/maps/usefulafrica

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7) Globally Leading Return on Investment

The final key economic driver and rationale for investment in Africa generally, and the Great Lakes Region specifically, is the fact that the returns that are being earned on investment in the region are in many instances higher than obtainable anywhere else in the world. Foreign direct investment returns from Africa over the past six years have exceeded those earned in other emerging markets.

Figure 19. FDI Returns in Africa Lead the World

Rate of Return on Inward Foreign Direct Investment by Developing Region (1995-2007) (Per Cent)

20

16

12

8

4

01995

South, East & South-East AsiaDeveloping economies

19971996 1998 1999 2000 20072002 2003 2004 20052001 2006

Middle EastLatin America & Caribbean

Africa

Source: http://www.amethisfinance.com/about-amethis/africa/attachment/the-explosion-of-the-middle-class-market/

In 2013, private equity analysts from Bloomberg noted that Africa was yielding rates of return in this asset class that were over 30%.

Figure 20. Rising Private Equity Return on Investment in Africa

Furthermore, the Emerging Markets Private Equity Association (EMPEA) undertook a survey of General Partners to inquire about their perceived key investment markets in terms of attractiveness and Sub-Saharan Africa was the number one most attractive market among global emerging markets.

Chart 14. Growing Interest in Africa among Private Equity Investors

The attractiveness of Emerging Markets for GP Investment over the next 12 month – LP views

2013 2012 2011

Sub-Saharan Africa 1 5 7

Southeast Asia* 2 4 2=

Latin America (ex Brazil) 3 1 4

China 4 3 =2

Turkey 5 7 6

Brazil 6 2 1

Central and Eastern Europe 7 10 8

Russia/CIS 8 8 10

India 9 6 5

Middle East and North Africa 10 9 9

Source: The Emerging Markets Private Equity Association (EMPEA)Legend: “GP” = General Partner

In regard to the Great Lakes Region in particular, the 2014 UNCTAD World Investment Report and the 2014 Ernst and Young Africa Investment Attractiveness Survey also indicated that a number of the countries in the region are leading recipients of foreign direct investment already, and two, Kenya and South Africa, are leading a new trend of increased intra-regional investment in Africa and have emerged as two of the top ten investors in Africa globally.

Chart 15. Key African Hubs: Reality vs. PerceptionReality* Perception**

Sub Saharan Africa

South Africa 24% 37%

Nigeria 9% 9%

Angola 8% 6%

Kenya 7% 6%

North Africa

Morocco 30% 31%

Egypt 31% 24%

* Top Countries by share of FDI projects (2007-2013) ** Top countries perceived as most attractive by investors Source: EY’s 2014 Africa Attractiveness Survey (Total responses 503) intelligence

An interesting finding in the Ernst and Young survey was the fact that three of the four principal investment destinations in Sub-Saharan Africa, include South Africa, Angola and Kenya, and investor perceptions that are relatively accurately note that these countries are where the majority of foreign direct investment has been made over the six year period between 2007 and 2013.

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Figure 21. New FDI Hotspots are Emerging in Africa(CAGR and share of FDI projects 2008-2013)

Ghana+51%

Nigeria+19%

South Africa+17%

Mozambique+33%

Zambia+31%

Tanzania+23%

Kenya+40%

Uganda+20%

Southern Africa+14%

Share: 33%

West Africa+28%

Share: 17%

East Africa+23%

Share: 17%

Source: EY, FDI Intelligence

Additionally, the survey noted that over the five year period, between 2008-2013, East Africa and Southern Africa were leading destinations of foreign direct investment in Africa,

receiving 23% and 14% of all investment in Sub-Saharan Africa, respectively, and accounted for 33% (Southern Africa) and 17% (East Africa) of the overall share of investment in the sub-region. The leading country destinations for this investment that are part of the expanded Great Lakes Region included Kenya, Zambia, Tanzania, Uganda and South Africa. Within the six year period of 2007 and 2013, the leading industries that investors selected for investment included: the financial services sector; telecommunications, media and technology (TMT); retail and consumer products (RCP); business services, real estate housing and construction (RHC); mining and metals, coal, oil and natural gas; transport and logistics; data information and processing (DIP) and the automotive sector.

Multinational companies that have expanded in the region over the past five years include globally recognized companies such as IBM, Coca Cola, General Motors, Nestle, Microsoft, General Electric, DHL, Walmart, Bharti Airtel, Cisco Systems, Orange Telecommunications, Addax & Oryx.

In the Great Lakes Region, selected key companies that have been investing and expanding in these sectors over the past five years include a number of regional multinational domestic corporations such as:

Chart 16. Selected Domestic and Multinational Investors in the GLRSelected Domestic Investors Selected Multinational Companies

• EquityBank(banking/financialservices–Kenya);• Nakumatt(supermarket/retail–Kenya);• MTN(mobiletelephony–SouthAfrica);• Sanlam(insurance/financialservices–SouthAfrica);• Bhakresa(grainmilling–Tanzania);• Uchimi(supermarket/retail–Kenya);• TheMadhvaniGroup(conglomerate–Uganda);• TheMaraGroup(conglomerate–Kenya);• StanbicBank(banking/financialservices–SouthAfrica);• GroupL’Avenir(media/freightandlogistics–DRC);• EastAfricanBreweries(beverages–Kenya);• Tourvest(tourism–SouthAfrica);• KenyaAirways(transportation–Kenya);• Tanelec(energy/electronics–Tanzania);• BidcoOils(oilseed–Kenya);• TheAlamGroup(conglomerate–Kenya);• EastAfricanPortlandCement(buildingmaterials–Kenya);• Group5(construction–SouthAfrica);• EastAfricanGrainsCouncil(grains–Kenya);• SerenaHotels(tourism–Kenya);• MwanaAfrica(mining–DRC);• SameerAfrica(logistics/industrialparks–Kenya);• SafalGroup(engineeringandconstructionmaterials–Kenya);• TheMountMeruGroup(conglomerate–Tanzania);• LiquidAfrica(Telecommunications)

• IBM(ICT)• CocaCola(Beverages)• GeneralMotors(Automanufacturing)• Nestle(Food)• Microsoft(ICT)• GeneralElectric(Conglomerate)• DHL(Logistics)• Walmart(Retail)• BhartiAirtel(Mobiletelephony)• CiscoSystems(ICT)• Orangetelecommunications(ICT)• Addax&Oryx(OilandGas)• TullowOil(OilandGas)• Unilever(Conglomerate)• Cargill(Agriculture)• Yara(Agriculture)• Syngenta(Agriculture)• FEDEx(Logistics)• Samsung(Electronics)• Toyota(Automanufacturing)

Source: author’s compilation

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Over the six year period between 2007-2013, seven of the top 15 countries in sub-Saharan Africa that attracted foreign direct investment were also within this region – including (in reverse order of their share of projects): Rwanda, Zambia, Uganda, Tanzania, Angola, Kenya and South Africa.

Chart 17. FDI Sectors in AfricaProjects Value Jobs created

Financial services 17.5% 2.1% 2.7%

TMT 16.3% 8.7% 7.5%

RCP 13.9% 4.8% 16.8%

Business services 9.2% 1.0% 1.9%

RHC 8.6% 22.9% 19.2%

Mining and metals 6.6% 14.2% 21.2%

Coal, oil and natural gas 5.5% 31.8% 5.3%

Transport and logistics 4.9% 2.3% 2.0%

DIP 4.8% 1.3% 3.5%

Automotive 4.1% 2.7% 11.9%

Source: FDI intelligence

The development of greater African intra-regional investment is of particular importance because the Ernst and Young survey noted that from a perception of investment attractiveness, investors already active on the continent saw Africa has the most attractive region in terms of where they would investment. Conversely, investors outside of the continent, despite all of the developments mentioned above, saw Africa as the least attractive region to invest in.

Chart 18. Africa’s Relative Attractiveness – Strongest for Existing Investors

More attractive

“A lot more” and “quite more attractive”

Less attractive

“Quite less” and “not at all

attractive”Africa’s advantage

(% points)

Established in Africa

North America 53.7% 40.6% +13

Asia 54.4% 40.0% +14

Western Europe 56.7% 39.2% +18

Oceania 54.8% 34.4% +20

Latin America 63.5% 30.5% +33

Central America 62.9% 28.6% +34

Eastern Europe 64.9% 29.2% +36

Middle East 66.6% 29.7% +37

CIS 64.6% 27.5% +37

Not established in Africa

North America 34.3% 63.5% -29

Oceania 34.2% 59.6% -25

Asia 37.2% 61.1% -24

Middle East 39.2% 48.8% -20

Western Europe 39.4% 59.0% -20

Latin America 40.3% 55.0% -15

CIS 41.2% 55.3% -14

Eastern Europe 43.5% 54.7% -11

Central America 44.5% 49.7% -5

Source: EY 2014 Africa Attractiveness Survey (Total Respondents 503, Established in Africa 306, Not Established in Africa 197)

Fortunately, intra-regional FDI projects in Africa are at an all-time high with nearly a quarter of all FDI projects financed in 2013 coming from Africa-based investors – including both domestic and multinational investors, in the market. This vote of confidence is also one of the drivers of African economic growth and as two of the three leading intra-regional investors, Kenya and South Africa, are within the expanded Great Lakes Region, it bodes well for investment attraction efforts that will look to quick wins from regionally based investors. Furthermore, the success of these investors will afford the regional member countries to pursue more skeptical investors outside of Africa, generally, and the Great Lakes Region, specifically.

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Chart 19. Intra-Regional FDI Projects in Africa are at an All Time High

In terms of source regions, only FDI projects from Africa and Asia Pacific increased in 2013. The share of intra-African FDI projects reached an all-time high of 22.8% in 2013, from 18.2% in 2012.

In terms of capital investment, Western Europe took up the lead position for the first time since 2010, outstripping Asia Pacific and the Middle East.

2003-07 2012 2012 2013 vs 2012

Western Europe 164 278 277 -0.4%

Asia 32 141 171 +24.3%

Asia Pacific 64 131 143 +9.2%

North America 77 111 87 -21.6%

Middle East 37 87 56 -35.6%

Rest of Europe 12 18 11 -38.9%

Latin America (and the Caribbean)

4 8 5 -37.5%

Source: EY, FDI Intelligence

Lastly, the continental investment in 2013 is also noteworthy as foreign direct investment accounted for 60.9% of the job creation from recorded in the year and 62.3% of the overall number of projects undertaken.

Figure 22. Largest Intra-Regional Investors in Africa

. South Africa

Kenya

Nigeria

ProjectsAmountJobs

34.8%

44.6%38.3%

15.9%10.9% 11.2%

11.6% 10.7% 11.4%

Source: EY, FDI Intelligence

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Chapter 3.

Selected Sectors of Investment Opportunity

While there are a number of investment opportunities emerging in the Great Lakes Region, seven sectors have been identified as driving the region’s growth and offer significant opportunity for further expansion. These include: 1) agriculture; 2) energy; 3) finance; 4) ICT; 5) infrastructure; 6) mining and 7) tourism.

In this next chapter, a sector overview, selected regional projects and national projects of regional importance are offered as examples of the types of projects that have been receiving strong public sector, Regional Economic Community, and development partner support. This support, which increasingly is being channeled through formal public-private-partnership arrangements where operating contracts, build-operate-transfer agreements, concession agreements and other blended contractual agreements, is creating opportunities for private companies and investors to participate in what historically had been large public sector driven and managed projects – for mutual benefit.

ILLUSTRATIVE SECTORAL PROJECTSAgriculture

1 Transfrontier Markets

2 SAGCOT

3 South Sudan Nzara Agro Industrial Complex

4 Ruzizi Growth Pole

5 UNDP Regional Maize VC Project

6 ABSA-SAB Miller DRC Grains Project

7 Rwanda Bonded Warehouse Facility

Energy

8 WB/CEPGL Ruzizi III

9 DRC/Rwanda Lake Kivu Methane Gas Development

10 WB/CEPGL Ruzizi I and II Rehabilitation

Finance

11 ICGLR Regional Microfinance Project/ SOIGL

12 ICGLR/ CEPGL Reestablishment of the Development Bank of the Great Lakes States

ICT

13 WB Central Africa Backbone Project

Infrastructure

14 Trademark East Africa Northern Corridor

15 Angola/ DRC/ Zambia Lobito Corridor

16 ICGLR Southern Corridor

17 CEPGL One Stop Border Posts

18 South Sudan/ Kenya Lamu Port/ LAPSSET Corridor

19 Kisumu Port and Other Lake Victoria Ports

20 Brazzaville, Congo – Kinshasa, DRC Road – Rail – Bridge

21 Central Multimodal Transport Corridor

Mining

22 Uganda Oil Refinery

23 Chambers Federation South Kivu DRC Cooperative Mining Project

Tourism

24 IGAD Sustainable Tourism Roadmap

25 Lake View Resort City in Kisumu, Kenya

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AGRICULTURE

Key Industry Factors and Recent Trends

• The Year of Agriculture and Food Security – Under the auspices of African Union’s designation that 2014 is the Year of Agriculture and Food Security, the continent’s Heads of State met in Malabo, Equatorial Guinea in June 2014 for their Annual Summit and recommitted to the aim of Continuing the Momentum of the Comprehensive African Agriculture Development Program. In addition to renewing their commitment to their Maputo commitment to spend 10% of their budgets on agriculture and to strive to achieve 6% growth in the sector, there was a renewed commitment to engage the private sector in the efforts to implement national agriculture investment plans – through efforts to attract direct investment and through PPPs (see http://pages.au.int/caadp). At the 2013 World Economic Forum in Cape Town, South Africa, the African Union chairperson stated “Africa is on the road of prosperity. African agriculture is the true driver of economic growth; but we need the private sector to kick-start this process” (NEPAD 2013).4

• Leading Countries – In the PSCF GLR, while all of the countries have significant agriculture and agribusiness potential, the leading current food producers are: Kenya, South Africa, Tanzania and Zambia and these countries have the deeper domestic, regional and international value chains. Kenya as a regional hub and leading horticulture, tea and coffee exporting country also serves as an important import/ export channel for the Great Lakes Region through its port in Mombasa.

South Africa, driven by its huge cooperatives-turned listed agri-conglomerates, domestic and international food processing groups, and diversified food franchise and retail industry has the continent’s deepest and most sophisticated food sector. According to SA Deputy Minister of Agriculture, Forestry and Fisheries of South Africa Dr. Pieter Mulder, the biggest reason for Africa’s low food production is a shortage of large commercial farms. In Africa 85% of all farms are smaller than 2 hectares.5 “One

of the major limitations on agribusiness development in Africa is a human capacity and human skills constraint. The ability and experience to develop and manage commercial farming and agribusiness ventures are largely lacking in the African environment and that major technology transfer and capacity building would be necessary in this regard.”6 “CEOs of (South African) agribusinesses are on average very positive towards the possibility of expansion into the rest of Africa. 70% of respondents indicated that they would pursue such opportunities. Africa is rapidly becoming a preferred investment destination and is said to represent the last frontier in global food and agricultural markets with its large percentage of uncultivated fertile land and sufficient water resources (World Bank, 2013).”7

Recent developments in expansion into countries elsewhere on the continent include Tiger Brands, which announced in February 2014 that it had acquired 100 percent stakes in Kenya-based Rafiki Millers and Magic Oven Bakeries. The company said the acquisitions would give it a meaningful presence in Kenya’s milling and bread baking industry.

“The acquisitions strengthen our international operations

and provide a solid platform to participate in a growth category where the group has significant expertise,” it said.8

• Tanzania,guidedbyitsambitious,vast,andmulti-partneroriented Southern Agricultural Growth Corridor of Tanzania (SAGCOT) initiative is harnessing an unprecedented number of private sector and development partner stakeholders in support of the government’s vision. The SAGCOT Investment Blueprint describes how $2.1 billion of private investment will be catalyzed over a twenty year period, alongside public sector grants and loans of $1.3 billion. The result will be a tripling of the area’s agricultural output. Approximately 350,000 hectares will be brought into profitable production, much of it farmed by smallholder farmers, with a significant area under irrigation. Tanzania is poised for more investments from South Africa in its export processing zones as the two countries seek to strengthen bilateral business and investment cooperation. A visiting South Africa’s Deputy Minister, of Trade and Industry, Ms Elizabeth Thabethe, said in Dar es Salaam that they would help to look for investors in the country’s export processing zones in areas of agriculture products’ value addition, mineral processing and light assembling among others. “It is through economic cooperation between African countries that our continent will attain sustainable development,” the Minister said, adding that intra Africa trade was a way forward for the continent.9

• Zambia,thegrainbreadbasketofsouthernAfrica,hasgrowing capacity to produce grains, livestock, meat and by-products such as skins, hides and leather products for regional and international export. Value addition is a hallmark of Zambia’s land-linked agribusiness community.

• Someothercountries,whicharenotamongthebiggestagriculture producers in the GLR, have enormous potential to improve: “The Democratic Republic of Congo has the potential to become one of the world’s key producers across a large number of agricultural commodities. It has

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the climate, water, and scale to accomplish this. Yet it currently imports over $1 billion in agricultural commodities per annum, at major cost to the populace. The DRC population is also predicted to grow from 70 million to approximately 130 million over the next 20 years, with an attendant rise in the import bill. There is an enormous opportunity to displace these expensive imports and transform the country into a net exporter of agricultural products.”10 “The potential of the DRC is huge. It could be another Brazil.” ( Joachim von Braun, Director General, International Food Policy Research Institute)

• Industry Focus – “Treat Agriculture as Business throughout the Value Chain” – Across the continent, and definitely within the region, there is a focus on shifting from the agriculture sector being one of livelihoods and poverty alleviation to one focused on treating agriculture as a business and achieving wealth creation through agribusiness. Agribusiness is projected to be a $1 trillion USD industry in sub-Saharan Africa by 2030 (World Bank 2013). “Public Private Social Enterprise Partnerships” (PPSPs)11 are emerging to help the public and private sectors to form partnerships with social enterprises (who historically and currently work with the region and continent’s preponderance of small hold farmers who dominate the sector) to establish formal structures to aggregate and strengthen the capacity, bargaining and purchasing power of farmers (through cooperatives, producer groups, SMEs) and to integrate them into emerging national, regional and existing global value chains.

• Leading Crops – In most countries in the PSCF GLR, coffee and tea are grown. Rice, horticulture, fruits and vegetables, livestock, and dairy products are also produced. In selected countries wheat is produced, and in those nations abutting the ocean, the Great River Nile or smaller tributaries, and/or one or more of the regional Great Lakes, fishing is found. Efforts are also intensifying to develop methods to use staple crops such as cassava and sorghum in higher value end-products such as beer and flour, and as supplements for other food products to increase the earnings of small hold farmers who produce these crops.

• Agriculture Sectors – In the 5 countries of the East African Community (EAC – Burundi, Kenya, Rwanda, Uganda and Tanzania) there is considerable scope for diversification and expansion of the agricultural sector through accelerated food crop production and increase of non-traditional exports. There are also opportunities for improvement in technology infrastructure such as packaging, storage, and transportation. Intensified irrigation and additional value added processing are marketable areas for investments. Investment opportunities exist in seed production, manufacture of sprayers and pesticides, veterinary services, construction of dams and bore holes, installation of irrigation systems and services. Opportunities also exist in support services, such as cold storage facilities and refrigerated transport for horticultural and other perishable products. Numerous investment opportunities exist in the agro-processing sector: edible and other oils produced locally include butter, ghee and margarine as well as sunflower, rapeseed, cottonseed, sesame, coconut and corn oils. A large quantity of palm oil is imported. therefore

investments to develop substitutes for palm oil imports are available. Opportunities exist in coffee roasting and grinding, with a further potential such as the production of decaffeinated coffee for export. Sugar production, at 402,000 tons per annum is below the domestic demand estimated at 600,000 tons per annum. Molasses, a by-product of sugar production, is processed into power alcohol, potable alcohol, and baker’s yeast. There is also considerable potential for the expansion of chocolate and confectionery products for export. Opportunities for investment exist in the production and processing of sugar, tea, meat and dairy products.12

• Leading Private Sector Investors – The African agriculture, agribusiness, agro-industry and food sectors have long had a number of multi-national institutional players from Europe and the United States in particular. Companies such as Coca-Cola, Cargill, Cadbury, Mars, Unilever, Yara, Syngenta, AGCO, Bayer, Guiness, Diageo, Heineken, Monsanto and Nestle are all prevalent in the countries of the PSCF GLR. However, increasingly regional multinationals are emerging. South African (Shoprite, Tiger Brands, Tongaat Hullet Group, Pioneer Foods, AFGRI, Astrat Foods, Illovo, SAB Miller) and Kenyan (Nakumatt, Sasini Tea and Coffee, Uchimi, Haco Industries, Bidco) companies are at the forefront of this charge, but Zambian (ZamBeef ) and Tanzania (Bakhresa Grain Milling) companies are also rapidly expanding across the region.

• Industry Drivers and Challenges – Africa remains with roughly 60% of the arable land in the world, and more than half of this land sits within the countries of the PSCF GLR. Demand from foreign investors to fuel global food security demands (Europe, China, Middle-East), growing middle classes (China and India) and increased domestic demand from the continent’s own growing middle class have created a much more lucrative global market for the agriculture/agribusiness community. Africa’s fast population growth and increasing urbanization are two additional drivers of a need for more food and food processing on the continent, and within the GLR. Nations such as the Democratic Republic of Congo and Angola, which despite having significant arable land, spend billions of dollars on food imports. They are also seeking to reduce their food bill and create economic opportunities in their agriculture/agribusiness sectors for domestic enterprises especially, those led by youth and women. Access to finance, electricity, post-harvest losses and a need for better transport infrastructure to get product to market are all existing challenges in the sector. Methodologies and technology to adapt and mitigate changes in the global climate are also needed. Lastly, there is a need to up-skill farmers and to expand the capacity of actors throughout the food value-chain (transport, logistics, packaging, marketing, finance, processing) on the continent.

• Key Investment Opportunities – Infrastructure, Inputs, Mechanization, Irrigation, Post-Harvest Loss Reduction – The key areas where emerging and lead agriculture private equity firms in agriculture value chains are focusing their investment is in the development of storage facilities on and near farms, in the provision of better quality seeds, fertilizer; and the introduction of farm

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mechanization and irrigation; and of post-harvest loss reduction methods and technologies to retain greater value throughout the sector. Lastly, through better harnessing of distributed renewable energy generated electricity (mini-hydro, solar, wind and bio-mass in particular); efforts are underway to bring increased processing capacity closer to the farm gate to add more value to crops and create greater earnings potential for farmers.

Said Salim Awadh Bakhresa, Founder and Chairman www.bakhresa.com

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: THE BHAKRESA GROUP

The Bakhresa Group is one of the leading agriculture Industrial Houses in Tanzania. Started in a humble manner with a small restaurant in the Port City of Dar Es Salaam, Tanzania, in the mid-seventies, it has now emerged as one of the prominent family owned business groups in the region.

The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Rwanda, Burundi, Zambia, Malawi and Mozambique. Plans are in place to spread its wings to other countries.

The Group now boasts a turnover of more than US$600 million and is a proud employer of more than five thousand direct employees across Group companies.

There are several companies under the Bakhresa Group umbrella and Group investments include companies involved in Food and Beverage Sector, Packaging, Logistics, Marine Passenger Services and Real Estate.

Yaw Nsarkoh, Managing Director, Unilever East and Southern Africa www.unilever.com

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: UNILEVER

Founded in 1930 out of a merger between Lever Brothers (UK) and Uni-margarine (Netherlands) which existed in the 19th Century, Unilever (Uni+Lever) is today one of the world’s leading Fast Moving Consumer Goods (FMCG) company with a turnover of more than 4.3 billion Euros. With Corporate offices in London and Rotterdam, it operates in 100 countries.

The company spends 2.5% of its turnover on research and development and 1.5% on Corporate Social Responsibility. Unilever directly employs 250,000 people around the world and indirectly millions more as contract manufactures, growers, suppliers, distributors and service providers.

Unilever East and Southern Africa (ESA) is a Unilever Subsidiary operating in Kenya, Uganda, Tanzania, Zimbabwe, Zambia, Mozambique, Malawi. ESA covers a market of 19 countries with a population of 150 million people. Unilever operates two businesses, the Consumer business dealing with fast moving consumer goods (FMCG) and the Tea plantations business in Kenya and Tanzania.

Project Name:

Transfrontier Market Development

Project Country (ies):

Rwanda, DRC, Burundi

Project Sector:

Agriculture (women)

Project Source/Sponsor/Funder(s):

CEPGL (Sponsor)

Short Description of the Project:

This project was designed by CEPGL to aid women traders in three border regions between the DRC and Rwanda:1) Kampala a Goma-Gisenyi (North Kivu) (DRC and Rwanda); 2) Bukavu-Kamembe (South Kivu) (DRC and Rwanda) NORTH KIVU

UGANDA; and 3) Kamanyola-Sange (South Kivu) (DRC near Burundi border).

The intent is to develop three DR CONGO “trans-frontier” markets/ trading zones to provide the women a more structured and secure environment to trade their wares. This would also seek to improve their experience at the border crossings between these two GLR countries.

Investment Opportunity:

Management of markets construction and management of logistics infrastructure; provision of finance facilities for traders

Stage of Project:

Construction of a Border Market at the border of Gatumba (Burundi) and Uvira (DRC) was completed in February 2015 with the financial support of NEPAD / Spanish Fund

Type of Project:

Agriculture related Infrastructure/Trade Facilitation

Duration of Project:

Estimate 15 months to develop

Cost of Project:

US$21 million

Funding Available:

Seeking funding for Transboundary Markets on the borders of Goma and Gisenyi (Rwanda-DRC), Bukavu and Kamembe (DRC-Rwanda), Kamanyola Bugarama and Cibitoke (DRC-Rwanda-Burundi)

Funding Gap:

TBD

For More Information:

Secrétariat Exécutif Permanent de Ia CEPGLBP 58 GISENYI/RUBAVU République du RwandaTel: +250 280 30 30 40/40/50/60Email: [email protected]: www.cepgl.org

Selected Illustrative Agriculture Sector Projects

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Project Name: Southern Agricultural Growth Corridor of Tanzania (SAGCOT)Project Country (ies): Tanzania (border Zambia, DRC)Project Sector: Agriculture (Livestock) / AgribusinessProject Source/Sponsor/Funder(s): Government of Tanzania (Multiple Partners), to date SAGCOT has already registered over 70 partners and under G8 New Alliance for Food Security and Nutrition.Short Description of the Project:The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is an agricultural partnership designed to improve agricultural productivity, food security and livelihoods in Tanzania. It was initiated at the World Economic Forum Africa summit in May 2010, following which the SAGCOT Investment Blueprint was launched nationally by Prime Minister Pinda in Dar es Salaam and internationally by H.E. President Kikwete at the 2011 World Economic Forum in Davos. Among the partners involved are food companies, processors, input and service providers, farmers associations, and various bilateral and multilateral development partners. The SAGCOT targets aim at bringing 350,000ha into production, involving 10,000 small-hold farmers, with a vision of creating 420,000 new job opportunities while generating US$ 1.2 billion in annual revenue by 2030. The impact will be a tripling of the area’s agricultural output and income improvement for millions of Tanzanians. The SAGCOT Centre Ltd works as a broker and catalyst of partnerships among registered partner organisations to incubate initiatives around inclusive, sustainable, and viable agricultural value chains that engage with smallholder farmers.Investment Opportunity: Farming and agribusiness land concessions; supply of inputs and ICT technology; processing and packaging of products; storage facilities; energy infrastructure provision; logistics services and transportation; office and residential construction; finance.Stage of Project: Design completed, preliminary investment made close to 30 SAGCOT Partners have pledged almost USD 1 Billion of sustainable investments in Tanzania, whilst development partners have pledged significant public investments. Type of Project: PPP - Agriculture/ Agribusiness and related Infrastructure/ Trade FacilitationDuration of Project: On-going through 2030Cost of Project:US$2. 1 billion of private investment, and US$1.3 billion in public grants and loansFunding Available:Annual USD 15 million of funding which is provided by the Government of Tanzania, Development Partners and fees paid by its partners.Funding Gap:TBDFor More Information:See www.SAGCOT.comTel: +255 (0)22 260 1024/ 46Fax: +255 (0)22 260 2368

Project Name:

Rehabilitation of the Nzara Agro Industrial Complex

Project Country (ies):

South Sudan, DRC, CAR

Project Sector:

Agriculture / Agro-lndustry

Project Source/Sponsor/Funder(s):

Government of South Sudan (see king private participation via PPP)

Short Description of the Project:

Established in 1943 the Nzara complex once comprised a full integrated cotton ginning, spinning, weaving and textile mill, 2 oil mills (utilizing cotton seed, groundnut, sesame and oil palm), a soap factory, a small sugar plantation and jiggery mill, a saw mill, mango, citrus and coffee orchards and livestock, poultry and fish-farming operations. Sitting on 1000 ha of land, Nzara is located in South Sudan’s “green belt” with borders with the DRC and CAR. Designed to serve the surrounding large “captive area” in the DRC and CAR, Nzara is located in an area more than 2000 from the nearest port.

Investment Opportunity:

Farming concessions, management of processing facilities; logistics and transport provision; energy; storage facilities; input provision; packaging, trade services and finance.

Stage of Project:

Existing facilities, feasibility study of new operations needed

Type of Project:

PPP-Agriculture/Agribusiness/Agro-industry

Duration of Project:

Estimate 24 months to rehabilitate and commence initial operations

Cost of Project:

TBD (note: Initial investment today would be valued at roughly US$60 million)

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

http://www.ssdi.co.za/

UPPERNILE

JONGLEI

EASTERN EQUATORIA

CENTRALEQUATORIA

WESTERNEQUATORIA

NORTHERNBAHR

EL GHAZAL UNITY

LAKES

Abyei

ToritYambio

Bentiu

Wau

Malakal

Rumbek

Aweil

Bor

Kuacjok

Juba

UPPERNILE

JONGLEI

EASTERN EQUATORIA

CENTRALEQUATORIA

WESTERNEQUATORIA

NORTHERNBAHR

EL GHAZAL UNITY

WARRAP

LAKES

WESTERNBAHR

EL GHAZAL

U G A N D A

CENTRALAFRICAN

REPUBLIC

K E N Y A

DEM. REP.OF THE CONGO

S U D A N

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Project Name: Regional Ruzizi Plain Integrated Agricultural Growth PoleProject Country (ies): DRC, Rwanda, BurundiProject Sector: Agriculture/ Agro-lndustryProject Source/Sponsor/Funder(s): World Bank/ Government of DRC (seeking private participation via PPP)Short Description of the Project:Growth poles are simultaneous, coordinated investments in many sectors to support self-sustaining industrialization in a country. Multi-sector spatial development project supporting households, commercial agricultural development, agribusiness, development of a regional fertilizer plant, rehabilitation of the Kamembe airport to serve as regional airport for the adjacent regions of Bukavu, Burundi and the South West of Rwanda, and support of trade logistics in the Ruzizi Plain.

In part the project is also able to build on the five year (2006-2012), IFDC CATALIST (Catalyze Accelerated Agricultural Intensification for Social and Environmental Stability) project which was funded by the government of the Netherlands. The project involved 714,000 farmers and involved activity on 6 50,000 hectares in the Ruzizi Plain.Investment Opportunity: Management of processing facilities; logistics and transport provision; energy; storage facilities; inputs (seeds and fertilizer) provision; irrigation technology provision; packaging, trade services and finance.Stage of Project: Inception missions visited the Ruzizi Agricultural Growth Pole Project in September and October 2014, at which point the project preparation stage was launched, and the project activities were discussed with government.Type of Project: PPP potential – Agriculture/ Agribusiness/Duration of Project: Estimate 12 months to have formal project documents – 60 months to implementCost of Project:US$200 millionFunding Available:World Bank has included 100% funding in list of priority projects that are part of $1 billion commitment.Funding Gap:World Bank has noted that there are several areas (fertilizer plant, agribusiness facilities, agriculture value chains) where the private sector can participate. Seeking interested parties.For More Information:Great lakes Initiative Africa Regional Integration Program. AFCRIMailstopJ11·1102The World Bank1818H St NWWashington, D.C. 20433 USAT el:•1·202-458-9197Fax: •1-202-522·1580URl: www.worldbank.org

Project Name:

Program to Support the Economic Integration Process of CEPGL – Regional Maize Value Chain

Project Country (ies):

DRC, Rwanda, Burundi

Project Sector:

Agriculture / Agro-lndustry

Project Source/Sponsor/Funder(s):

CEPGL/ UNDP ((seeking private participation via PPP))

Short Description of the Project:

Project involves 27 communities in three countries and involves the development of a regional maize chain, strengthening the competitiveness of maize markets in the region and beyond (for supports), and strengthening the capacity of CEPGL to develop and support regional agriculture value chains.

Investment Opportunity:

Inputs provision; establishment and management of processing facilities; logistics and transport provision; energy; storage facilities; input provision; packaging, trade services and finance.

Stage of Project:

Project design has been developed by UNDP.

Type of Project:

PPP potential – Agriculture/Agribusiness/Agrco-industry

Duration of Project:

Estimate 12 months to have formal project documents-36 months to implement

Cost of Project:

US$ 20 million

Funding Available:

TBD

Funding Gap:

TBD

Issues/Comments:

Secretariat Executif Permanent de la CEPGLBP 58 GISENYI/RUBAVU Republique du RwandaTel: +250 280 30 30 40/50/60Email: [email protected]: www.cepgl.org

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Project Name:

ABSA-SABMiller Grain and Seed Project

Project Country (ies):

DRC, Rwanda, Burundi, Uganda, Tanzania, Zambia

Project Sector:

Agriculture/ Agro-lndustry

Project Source/Sponsor/Funder(s):

ABSA Bank and SABMiller

Short Description of the Project:

The project was implemented, with other agricultural value chain partners, as a pilot – starting in February 2014 (planting) and due for harvesting in September and October 2014. Maize was then dried and stored. The first year of the pilot had planned to be funded by Absa, with the second and third year funded by interested parties (including GDOs).

Maize was harvested and the maize is currently in the processing of being sold. Maize from phase 1 (year 1) of the project is likely to be sold by the end of February 2015. Phase 2 implementation will depend on available funding.

Investment Opportunity:

Inputs provision; agro dealer development; establishment and management of processing facilities; logistics and transport provision; energy; storage facilities; input provision; packaging, trade services and micro-finance.

Stage of Project:

Concept Stage

Type of Project:

PPP potential – Agriculture/ Agribusiness/ Agro-Industry

Duration of Project:

Phase 1 – complete; Phase 2 – Current, 1 year; Phase 3 (2016) – 1 year

Cost of Project:

The cost of the project was approximately US $1.1 million. Funding requirements will be for year 2 (2015) and year 3 (2016) – similar to the current cost of the project, if the same hectarage is planted.

Funding Available:

Bank funding was US $454,000

Funding Gap:

TBD

For More Information:

Agbiz (Agricultural Business Chamber)PO Box 76297, Lynwood Ridge 0040Grain Building, 477 Witherite Road, The Willows, Pretoria, South AfricaTel: +27 12 807 6686URL:www.agbiz.co.za

Project Name:

Rwanda Bonded Warehouse Facilities at the Borders of Gisenyi and Ruzizi Borders

Project Country (ies):

DRC, Rwanda

Project Sector:

Agriculture/ Agro-lndustry/ Trade

Project Source/Sponsor/Funder(s):

Rwanda Development Board (interested in private sector participation via PPP)

Short Description of the Project:

Rwanda has significant trade with neighboring DRC for both export and re-exported products. In North and South Kivu there are more than 10 million people and Goma and Bukavu are each within 5 kilometers of Rwanda towns (Giesenyi and Ruzizii). Prices of goods in the two DRC towns are between 9-179% higher than in Rwanda and the safety of cargo is a concern. Increasingly traders seek to store their goods on the Rwanda side of the border. This bonded warehouse initiative would accommodate this market.

Investment Opportunity:

Establishment and management of storage facilities; logistics and transport provision; energy; trade services and finance.

Stage of Project:

Project Brief prepared by Deloitte Touche

Type of Project:

PPP potential – Agriculture/ Agribusiness and related infrastructure

Duration of Project:

Estimate 6 months to have formal project documents – 12 months to implement

Cost of Project:

TBD

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

Rwanda Development BoardPO Box 6239Kigali – RwandaTel: +250 510 248Fax: +250 510 249E-mail: [email protected]: www.rdb.rw

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ENERGY

• Sustainable Energy for All, Power Africa and the Program for Infrastructure Development in Africa – In September 2011, UN Secretary-General Ban Ki-Moon launched the Sustainable Energy for All initiative and shared his vision for how governments, business and civil society, working in partnership, can make sustainable energy for all a reality by 2030. In 2013, the period 2014-2024 was designated as the UN Decade of Sustainable Energy for All (www.se4all.org). In 2013, United States President Barack Obama launched a Power Africa initiative to inspire development partners, the private sector and African governments to make the increased provision of electricity a priority in Africa. For sub-Saharan Africa, the scale of investment needed to achieve universal energy access is about $15-$20 billion per year, every year, through 2030. The only way to achieve that is to use public funds to leverage private investment. Ultimately, Power Africa depends on the successful engagement of the private sector to address Africa’s energy needs. To date, the private sector Founding Partners of SE4ALL have pledged to develop nearly 10 GW of critical generation projects in five of the Power Africa focus countries, resulting in over $20 billion in investment in these countries’ power sectors. Private sector partners are also focused on mini-grid and distributed power services and infrastructure, which can provide clean, reliable energy to Africa’s rural populations. Commitments sum to 700,000 new households and businesses served and over $1.1 billion in investment. Financial partners have pledged to make available over $8 billion for financing of energy projects, through project finance, new financing facilities/platforms, and fundraising.13

An outgrowth of the NEPAD program’s Medium and Long Term Infrastructure Development Plan, first broached in the mid-2000s, was the Program for Infrastructure Development in Africa (www.pida.org) a continental master plan for infrastructure development on the continent. These three policy initiatives have spawned programmatic activity intended to address the continent’s need for improved electricity generation, transmission and distribution capacity – to meet growing domestic, commercial and

industrial demand in line with the continent’s population and related GDP growth. Other bilateral and multi-lateral donors have followed suit: “Over the next seven years, European Commissioner for Development Andris Piebalgs said, Brussels will spend more than €2 billion in supporting energy in Africa. It is hoped that this will, in turn, leverage investments exceeding €10 billion, filling in the gaps for energy infrastructure and therefore allowing businesses, schools, homes and hospitals to gain access to the electricity they require.”14

• Leading Countries – In the 2013 PEW Trust Survey “Who’s Winning the Clean Energy Race”, it emerged that over the past five years, South Africa had the highest intensity of investment (predominantly in the solar energy sector) and garnered US$4.9 billion in renewable energy investment in 2013. As the leading energy provider within the Southern African Power Pool, South Africa from predominant coal fired power provides 60% of the electricity for the Southern Africa market and 40% of the entire continent’s output. However, within the PSCF GLR, the greatest potential for electricity production resides in the hydro power resource of the Democratic Republic of Congo’s INGA Dam. Angola, after Nigeria, is the continent’s leading petroleum producer and South Sudan is within the top 10 oil producers. Additionally, throughout the region, which is the head of the Nile River and includes the Great Lakes and Victoria Falls, there is significant untapped hydro-power, wind resources (in the mountain regions of the Rift Valley) and geo-thermal energy resource.

Beyond South Africa, Kenya also has a developed transmission grid and is a driver of the East African Power Pool, along with Ethiopia. The government of Kenya is looking for investors to establish a transformer manufacturing factory. The project, which will be built under a BOT arrangement, is expected to produce 20,000 transformers annually.15 Kenya is seeking investors to build three power plants to harness steam in the Rift Valley, the state-run Geothermal Development Company (GDC) said in January 2014. The GDC said it expected to drill 120 wells in the first phase of the project. The three plants are to produce 300MW of power by 2018 and the GDC estimates the project field has a potential of about 750MW. “A period of 24-36 months will be provided for power plant construction,” it said in a statement, adding that investors would be required to provide 60%-80% of the capital. It said investors that qualified would be expected to raise at least $400m for the development and the government would not provide risk guarantees. It encouraged would-be investors to look for these from organizations such as the World Bank’s Multilateral Investment Guarantee Agency.16 Methane gas from Lake Kivu portends to position the DRC and Rwanda as significant electricity producers in the coming decade. “There is also huge potential in Uganda, because the government has introduced investment-friendly regulation. In Uganda today, there are cost-reflective tariffs, as well as PPPs and power purchase agreements that are recognized as being safe procedures between private energy producers and the public sector off-takers.” (Bruno Wenn, CEO of the German Investment Corp. and chairman of the Association of European Development Finance Institutions – April 2014).

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• Industry Focus – Grid Development, “Inter-connection”, Renewable Energy, and Independent Power Production – Across the continent, and also within the region, there is a focus on increasing the reach of electricity grids in each country and to improve transmission capacity of the grid and the interconnectedness in each region within the emerging regional power pools. Greater and greater focus has also been placed on harnessing water, wind, solar, geothermal and biomass related electricity to create sustainable energy sources across the region and continent. Increasingly regional and continental governments are pursuing PPPs and establishing Independent Power Production policies and regulations to harness the power of the private sector in developing, financing and managing power projects.

• Leading Sub-Sectors – As the PSCF GLR is a water rich region, while other renewable energy projects are emerging and traditional carbon based projects still are important sources of energy in the region, harnessing hydro, mini, and micro – hydro sources of energy generation is the key focus in terms of increasing electricity production expeditiously. Thus, hydropower projects dominate the pipeline of projects being developed in the region at present. Furthermore, transmission and inter-connection projects are prevalent as countries seek to be able to shift load and trade electricity among themselves with greater flexibility and cost-effectiveness. Beyond renewable energy, the region is rich in carbon resources and a major oil and gas producer globally. Angola, South Sudan and Congo are leading oil and gas producers and Uganda, Kenya, and the DRC also have reserves and exploration underway.

• Leading Private Sector Investors – Notwithstanding the growing focus on renewable energy, the leading “energy” companies in the region are the oil and gas ones, as the multinationals such as Total, Chevron, BP, ExxonMobil, Marathon, Petrobras are all active in the region. China’s national oil company, CPECC, also is very active in South Sudan and increasingly active in Angola. South Africa’s Eskom is the largest utility on the continent, and Kenya Power and Light and the Tanzania Electric Supply Company are also leading regional players. Sasol (gas to liquid) and Engen are other leading South African energy companies active in the region. In the renewable energy arena, global leaders such as Abengoa, Bright Source and Areva (Concentrating Solar Power), Yingli, SolarWorld, Jinko Solar (Photovoltaic Solar), Suzlon and Siemens (Wind Energy) are all active in South Africa and beginning to explore opportunities elsewhere on the continent. The World Bank says, the private sector may reap enormous benefits from the oil and gas production if it creates various products that could be supplied in the whole chain. The WB Sector Leader for Finance and Private Sector Development, Mr Andrea Dall’Olio, told a news conference during a CEO roundtable in Tanzania that private sector should identify the needs to be supplied in each stage of the oil and gas production chain while observing quality. “To grab the lucrative deals, private sector should involve gas and oil experts and learn from the vast knowledge obtained in various researches done in other countries,” he said. He urged the private sector to enter into joint ventures with foreign firms where they cannot do alone in order to reap maximum returns from the investment in the sector.17

• Industry Drivers and Challenges – Over the past decade, Africa has been the second fastest growing economy in the world, trailing only Asia – which has been principally driven by China’s rapid growth over the same period – as well as India’s billion person population. During this period, the continent’s growing middle class, improving governance, and a youthful population have attracted unprecedented investment and repositioned the region as a growth market for consumer products – such as electronics, mobile telephones, and automobiles. The rapidly growing population (which is expected to double to 2.4 billion over the next 40 years) has also been an economic driver as housing and construction boom across the continent and the PSCF GLR. Increasing petroleum and gas finds in the GLR have also increased interest and investment activity in the energy sector in the region. Lastly, rapidly falling solar PV prices (40% drop in prices in the past three years) and to a lesser extend CSP prices have stimulated much greater interest in solar energy than existed previously.

• KeyOpportunitiesinAfrica’sEnergySector1. Low access and insufficient capacity – Some 24%

of the population of sub-Saharan Africa has access to electricity versus 40 percent in other low income countries. Excluding South Africa, the entire installed generation capacity of sub-Saharan Africa is only 28 Gigawatts, equivalent to that of Argentina.

2. Poor reliability – African manufacturing enterprises experience power outages on average 56 days per year. As a result, firms lose 6 percent of sales revenues in the informal sector. Where back-up generation is limited, losses can be as high as 20 percent.

3. High costs – Power tariffs in most parts of the developing world fall in the range of US$0.04 to US$0.08 per kilowatt-hour. However, in Sub-Saharan Africa, the average tariff is US$0.13 per kilowatt-hour. In countries dependent on diesel-based systems, tariffs are higher still. Given poor reliability, many firms operate their own diesel generators at two to three times the cost with attendant environmental costs.

• The above are generating Key Investment Opportunities in IPPs, Transmission, Pipelines, Storage, Renewable Energy, Pay-as-you-go Metering – The key areas where opportunities exist in the energy sector in the PSCF GLR are in the area of independent power production (particularly involving hydro-power), electricity transmission, pipeline development and storage for gas and petroleum. Renewable energy generation opportunities, albeit for smaller plant and distributed power, are also emerging across the region. Lastly, as investors in electricity and utility expansion seek to ensure that more users pay for the services, opportunities are emerging for the diffusion of “pay-as-you-go” metering and payment systems.

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Ian Robertson, Managing Director

www.tanelec.co.tz

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: TANELEC LIMITED

Based in Arusha, Tanzania, Tanelec was started in 1981 and specializes in the complete manufacturing and distribution of transformers, accounting for about 75 percent of their turnover. The remainder is split between the service and repair division as well as low and medium voltage switchgear manufacturing.

Since 2007, Tanelec’s majority shareholder is the prominent Kenyan listed investment group TransCentury Limited, which has a strong presence in the power sector in the region with interests in a wide range of cable manufacturing and electrification projects.

Around 35 percent of its business is provided for the Tanzanian market, with the remainder in the utilities and private sectors in Uganda, Rwanda, Burundi, Kenya, Malawi, Mozambique and Zambia. Tanelec is the only manufacturer of transformers in east and central Africa, and much of its business is won in the competitive environment of international tenders.

Frank Duggan, Regional Manager

www.new.abb.com

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: ABB INDIA, MIDDLE EAST & AFRICA

ABB is a global leader in power and automation technologies. Based in Zurich, Switzerland, the company employs 150,000 people and operates in approximately 100 countries. The firm’s shares are traded on the stock exchanges of Zurich, Stockholm and New York.

ABB’s business is comprised of five divisions that are in turn organized in relation to the customers and industries we serve.

The company in its current form was created in 1988, but its history spans over 120 years. ABB’s success has been driven particularly by a strong focus on research and development. The company maintains seven corporate research centers around the world and has continued to invest in R&D through all market conditions.

In the Great Lakes Region, ABB has offices in Angola, Congo, Democratic Republic of Congo, Kenya, South Africa, Tanzania, Uganda and Zambia.

Project Name:

Ruzizi Ill Hydropower Project 145 MW (see http://www.au-pida.org/node/88)

Project Country (ies):

Rwanda, DRC, Burundi

Project Sector:

Energy/ Electricity (hydro power)

Project Source/Sponsor/Funder(s):

CEPGL/ ECGLC (Sponsor); World Bank (Guarantor), PPP-private investor

Short Description of the Project:

The project will supply electricity in equal proportion to Rwanda; Burundi and the Kivu region of the Democratic Republic of Congo (DRC). It is located on the border between Rwanda and DRC and in the international trans-border Kivu-Ruzizi basin. The project is expected to supply low-cost electricity to the three countries in the East African Community and the Common Market for Eastern and Southern Africa. The Ruzizi Ill hydropower plant is of 145 MW capacity and will be constructed on the border between Rwanda, and the DRC. It is of a run-of-the-river hydro-project type which will also allow for the control of the water level in the river basin. The Economic Community of the Great Lakes Countries (ECGLC) will be involved in the implementation of this renewable energy project.

Investment Opportunity:

Design; engineering and independent power production concession

Stage of Project:

All feasibility study completed

Type of Project:

Energy, PPP

Duration of Project:

Estimate 36 months to develop

Cost of Project:

US$210 million

Funding Available:

World Bank Guarantee for $210 pending

Funding Gap:

TBD

For More Information:

European Investment BankEast and Central Africa & Pacific Region98-100 Boulevard Konrad AdenauerL-2950 LuxembourgTel: +352 43 79 82974U R l: www.eib.org

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Project Name:

Rwanda and DRC Methane Gas Project (www.kivugas.com)

Project Country (ies):

Rwanda, DRC

Project Sector:

Energy/ Electricity (methane gas – electricity)

Project Source/Sponsor/Funder(s):

EAC/ DRC and Rwanda (private participation welcome through PPP)

Short Description of the Project:

Lake Kivu contains about 300 billion cubic metres of Co2 and 60 billion cubic metres of CH4 gas. An estimated 120 to 250 million m3 of CH4 is generated annually in the lake. Rwanda wishes to utilize this resource to develop methane-to-power projects and other uses such as fertilizer and gas-to-liquid projects. The methane in Lake Kivu is estimated to be sufficient to generate 700MW of electricity over a period of 55 years; Rwanda’s share of the total generation potential is about 350MW, with the rest being DRC’s share. Rwanda and DRC have agree to initially jointly develop 200MW

Investment Opportunity:

Design, engineering and independent power production concession

Stage of Project:

Feasibility study completed

Type of Project:

Methane to Electricity transmission

Duration of Project:

Estimate 36 months to develop

Cost of Project:

US$900 million

Funding Available:

Roughly $140 million has already been invested over past 5 years.

Funding Gap:

TBD

For More Information:

Rwanda Development BoardPO Box 6239Kigali – RwandaTel: +250 510 248Fax: +250 510 249E-mail: [email protected] bsite: www.rdb.rw

Project Name:

Rehabilitation of Ruzizi I (30 MW) and II (40 MW) Transmission line Rehabilitation and Development

Project Country (ies):

Rwanda, DRC, Burundi

Project Sector:

Energy/ Electricity (hydro power)

Project Source/Sponsor/Funder(s):

CEPGL/ ECGLC (Sponsor); World Bank (Funder) – interest in PPP

Short Description of the Project:

The project will is intended to rehabilitate the existing hydro energy lines related to Ruzizi I and II; rehabilitation of the transmission lines to Bukavu and Goma plus the extension of the distribution system.

Investment Opportunity:

Engineering, management and maintenance concession/ contract

Stage of Project:

Feasibility study completed

Type of Project:

Electricity transmission

Duration of Project:

Estimate 24 months to develop

Cost of Project:

Estimated: US$150 million

Funding Available:

World Bank

Funding Gap:

TBD

For More Information:

Great Lakes Initiative Africa Regional Integration Program, AFCRIThe World Bank1818 H St NW Mailstoplll-1102Washington, D.C. 20433 USATel:+ 1-202-458-9197Fax: +1-202-522-1580URL: www.world bank.org

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FINANCE

• Inclusive Business Finance – Lack of access to finance – for individuals and enterprises – has emerged as a critical impediment to economic growth on the continent and thus over the past five years a significant focus within the development partners community and most recently within the community of African central bankers has been about how to improve access to banking services, debt, equity and insurance capital for families and small and medium sized enterprises. The concept of inclusive business finance (see http://en.wikipedia.org/wiki/Inclusive_business_finance) focuses on how small holders, people in rural communities, individuals, and participants in value chains, basically those at the “base of the pyramid”, can access capital to improve their lives. This theme is at the basis of the finance sector opportunities in the PSCF GLR as most of the nations in the region have under developed financial infrastructure and fewer than 35% of the population in aggregate have access to capital. The Making Finance Work for Africa initiative (www.mfw4a.org) and the Finmark Trust (www.finmark.org.za) have taken the lead in helping to promote access to finance on the continent and in the PSCF GLR.

• Leading Markets – The two leading financial capital markets in the PSCF GLR are South Africa, whose financial sector is ranked within the top 10 in the world (within commercial and investment banks, a robustly traded and large capital market, insurance, forex bureaus, development banks, microfinance institutions, savings and credit institutions, pension funds, mobile finance, and postal finance) and Kenya (a global leader in the mobile-money and inclusive business finance model areas). Given its oil revenues, Angola, is also an important capital market in the region.

• Industry Focus – SME (“Missing Middle”), Impact Investment, Infrastructure Investment, Mobile Money and Venture Capital – Across the continent and within

the region, there is a focus on capital formation and mobilization for SMEs as the push to help expand the domestic African private sector (with the related desire to create more local employment opportunities for the burgeoning post-high school youth bulge). It remains difficult across the region for small businesses to secure debt and raise capital as they are deemed more risky than other avenues available for banks to deploy their assets. Social capital formation for metrics beyond internal rate of return have also grown in demand as the concept of “Impact Investing” has been promoted by institutions such as the Rockefeller Foundation, the Netherlands Development Agency, SNV, and the UK Department for International Development. The 2008 World Bank Africa Country Infrastructure Diagnostic delineated in detail the $40 + billion a year gap needed by Africa’s countries to fund maintenance, repair and new development needed in the infrastructure sector. Since then, a core focus has been on mobilizing capital from the private sector to fund infrastructure, developing PPP regulations to guide an increase in public-private partnerships, and the introduction of bond finance (sovereign, municipal and diaspora) to tackle the significant annual shortfall and to meet the nearly $50 billion that governments themselves are spending out of the national treasury. MPESA – which facilitates payment transfers by cellular telephones and venture capital funds such as, the PHATISA agriculture fund, are also examples of ways in which financial innovation is helping the region.

• Leading Sectors – In most countries in the PSCF GLR, significant focus has grown in the area of mobilizing capital for value chain financing related to the continent and region’s growing focus on agriculture-led development. Commercial banking, micro-finance and insurance are the longer standing sub-sectors in the PSCF GLR and private equity/ venture capital, impact investing, capital market development, commodity finance, and investment banking are emerging sub-sectors. Guarantee funds, leasing and factoring are also new areas that have begun to attract interest.

• Leading Private Sector Investors – Commercial Banking is the strength of the region as a number of continentally active regional banks – mostly from South Africa (Standard/ Stanbic Bank), Nigeria (Access Bank), Togo (Ecobank) – and multinational banks from Europe (Standard Chartered Bank, Citibank, Barclays) trade in the region. Equity Bank, Bank of Kigali, CRDB, Diamond Trust and Trust Merchant Bank are all leading banks within the region. South Africa’s Sanlam is an expanding insurance company targeting the region, and Africa Re is a large re-insurance company active in the region. The AfDB supported African Guarantee Fund is supporting private capital flows into the region’s banking and finance sector, and the AfDB, International Finance Corporation and European Investment Bank are all providing lines of credit to encourage banks to expand their penetration farther down the pyramid and to offer funding to the region’s SMEs. Mobile money in the region, is also a growing source of access to finance driven by the active cellular telephony companies in the region, including: Vodacom, Celtel’s, Glo, MTN, Orange, Safaricom, Tigo and Airtel.

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• Industry Drivers and Challenges – Important drivers in the region’s financial sector are the increased export capital flowing in the system from African mineral exports, the growing middle class’ earning power, construction and housing related borrowing and spending, relaxed pension fund regulation focused on increased mobilization of domestic financial resources, improving capacity within government to collect and administer taxes, and the improved perception continentally and internationally of Africa (in aggregate) as an investment destination. Challenges that remain within the industry are related to a dearth of SME and agriculture related lending and investing skills, a dearth of technical assistance and support for both financial institutions and recipients of capital. There are also too few innovative finance vehicles nor adequate leasing, factoring, and bond finance specialists. The need to improve controls over capital flows outside of the region, reduce actual excessive government bureaucracy and inhibit the practice of transfer pricing are also challenges to the growth of the financial sector.

• Key Investment Opportunities – Venture Capital, Impact Investment Funds, Factoring, Leasing, Bond Finance, and Investment Banking – The key areas where emerging financial services sector investors can find opportunity in the region are in the areas of venture capital (early stage equity financing for SMEs), Impact Investment Funds for medium sized domestic enterprises, Factoring Facilities to help enterprises with cash flow, Leasing businesses (to fund the growing demand for infrastructure and farming equipment as well as automobiles in the region), Bond Finance Houses to structure facilities to support the significant infrastructure funding demand, and Investment Banking (to facilitate the growing intra-regional and international merger and acquisition sector).

James Mwangi, CEOwww.equitybank.co.ke

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: EQUITY BANK

Equity Bank is licensed under the Kenya Banking Act (Chapter 488) and offers retail banking, microfinance and related services. The Bank has subsidiaries in Kenya, Uganda, South Sudan, Rwanda and Tanzania. Its shares are listed on the Nairobi Securities Exchange and Uganda Securities Exchange.

Equity Bank was founded as Equity Building Society (EBS) in October 1984 and was originally a provider of mortgage financing for the majority of customers who fell into the low income population. Having been declared technically insolvent in 1993, Equity’s transformation into a rapidly growing microfinance and then a commercial bank is widely considered to be an inspirational success story. Currently, Equity Bank had more than 8 million customers making it the largest bank in terms of customer base in Africa and having nearly half of bank accounts in Kenya. The company’s vision is “to be the champion of the socio-economic prosperity of the people of Africa”.

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: EMERGING CAPITAL PARTNERS

HURLey DoddyCo-CEO, Washington DC

Vincent Le GuennouCo-CEO Paris/Abidjan

www.ecpinvestments.com

ECP is a private equity group dedicated to investing in Africa. ECP has to date raised over US$2 billion for investment across the African continent, including the Francophone regions. ECP has put its investors’ capital to work in over 40 countries in all major regions of the continent, directly supporting over 50,000 jobs.

Today, ECP has over a decade of investing experience in Africa through seven private equity funds. They have over 50 investments made, over 30 exits completed and a strong portfolio of remaining transactions. ECP has completed deals across a wide variety of sectors including consumer businesses, telecoms, financial services, natural resources, agriculture and utilities.

With 70% of their employees living and working in seven countries throughout Africa, ECP’s investment team has a deep reach into African markets. This enables them to gain insight into the regions’ local economies and ultimately select companies that will deliver returns.

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Project Name:

ICGLR Great lakes Region Micro-Finance Institution/ Societe Financiere et d’ lnvestissement des Pays des Grands lacs Africains (SOFIGL)

Project Country (ies):

DRC, Burundi

Project Sector:

Microfinance

Project Source/Sponsor/Funder(s):

ICGLR (Sponsor)/ SOFIGL (Sponsor) (Potential PPP)

Short Description of the Project:

The immediate objective is to establish a regional micro-finance support facility by targeting micro-finance institutions in urban and rural areas to makes them more accessible, particularly to women who are generally more active in informal activities. SOFIGL was established in 2008 in Bukavu, DRC but with a regional mission to provide access to finance to artisanal miners, small hold agriculture and livestock farmers, and small enterprises in the region.

Investment Opportunity:

Provision of equity capital, management services, private equity and/ or line of credit provision

Stage of Project:

ICGLR has a concept note and SOFIGL has developed a preliminary business plan

Type of Project:

Microfiinance institution development

Duration of Project:

Estimate 12 months to develop

Cost of Project:

Estimated: US$ 4 million

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

Executive Secretariat of the International Conference on the Great Lakes Region (ICGLR)P.O. Box 7076Avenue du GouvernementBRB Building, Second floorBujumbura-BURUNDITel: +257 22 25 68 24/5/7/9Fax: +257 22 25 6828Email: sce [email protected]: www.icglr.org

Project Name:

CEPGL Development Bank of the Great Lakes States (BDEGL)

Project Country (ies):

DRC, Burundi, Rwanda

Project Sector:

Development Finance

Project Source/Sponsor/Funder(s):

ICGLR/ CEPGL (Sponsors) (Potential PPP – such as that of the Innovation Network Corporation of Japan (http://www.incj.co.jp/english/)

Short Description of the Project:

Established in1 977 and headquartered in Goma, DRC , BEDGL has been dormant for the past 10 years with a subscription debt from the DRC needed to replenish the institution‘s capital base. Historically active in funding agriculture, infrastructure, agro-industry, agribusiness, telecommunications, manufacturing, and transportation, BDEGL could be a very important regional funding partner if recapitalized. Adding private financial partners through an innovative partnerships such as has been established in Japan would add to the pace at which the institution could be active and relevant again in the region.

Investment Opportunity:

Provision of equity capital, management services, private equity and/ or line of credit provision

Stage of Project:

ICGLR has a developed a concept note

Type of Project:

Development Finance Institution restructuring

Duration of Project:

Estimate 24 months to develop

Cost of Project:

Estimated: US$ 4 million

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

Secretariat Executif Permanent de Ia CEPGLBP 58 GISENYI/RUBAVU Republique du RwandaTel: +250 280 30 30 40/40/50/60Email: in fo@cepgl. orgURL: www.cepgl.org

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ICT

• Digital Migration and the Mobile Revolution – The Program for Infrastructure Development in Africa (PIDA) (see www.pida.org) includes the expansion of ICT to the most remote corners of the continent as an important component of achieving regional integration. Over the past fifteen years, the growth of Africa’s ICT sector has been a key catalyst for the economic development, growth and expansion of the continent. African companies have emerged as leaders in mobile telephony and have patented numerous leap frogging technologies (pay-as-you-go and MPESA to name two) that have revolutionized the global telephony sector and lead to compounding increases in telephony penetration across the continent, including the PSCF GLR. Over the past five years, discussions have also increased about the coming digitalization of the broadcast sector in Africa which will unlock bandwidth for increased broadband access to support the growing Internet driven data flow across the region and continent. The African Telecommunications Union, working closely with the International Telecommunications Union have been at the forefront of helping countries develop policy and a conducive regulatory environment to promote increased sector expansion.

• Leading Countries– Kenya is arguably the continent’s leader in innovation and this has been recognized by IBM, who opened a regional “Innovation Centre” in Nairobi in 2013. South Africa, has also been recognized as a leading ICT market and has a number of domestic companies (in addition to most leading global ones) operating in a very sophisticated and competitive ICT market. Beyond these two countries Rwanda is rapidly developing the country’s broadband fiber optic backbone to become a business outsourcing center for global clients.

• Industry Focus – “Backbone Development”, Mobile Internet Penetration – Across the PSCF GLR, the focus is on improving the speed of connectivity in the region, the

bandwidth available for voice and data communication, and the penetration of telephony in rural areas. Key areas of investment and sector development focus include: cellular tower deployment, fiber optic network expansion, mobile internet capacity development (more and more Africans are accessing the internet via mobile devices versus computers), expanding the use of ICT to support the financial services sector, the farming sector (weather forecasting, crop insurance, market price transparency), and developing mobile money applications to address remittance services needs in the region.

• Leading Sub-sectors – In most countries in the PSCF GLR, both hard (mast deployment, fiber-optic laying, server installation) and soft (networking) sub-sectors in the ICT sector are growing rapidly. Migration from 3G networks to 4G networks continue to create opportunity and mobile telephony and related product reselling is also growing. Pay-as-you-go services also are in high demand, as are mobile money and mobile derivative technologies for the agriculture sector. Switchover technologies and soft infrastructure (training) is in demand to support the broadcast industries migration to digital terrestrial television/ radio over the next two years.

• Leading Private Sector Investors – The telephony companies involved with mobile money products are all leading investors in the regional ICT sector (Vodacom, Celtel’s, Glo, MTN, Orange, Safaricom, Tigo and Airtel). Cisco Systems, IBM, Microsoft, Alcatel Lucent and Oracle – all global firms – are also leading actors in the regional and continental ICT markets. Leading continental players Didata and Datatec, founded in South Africa and today globally active, are also an important presence in the region.

• Industry Drivers and Challenges – The expansion of access to mobile telephony and the mobi-migration websites to fit cell phones and customers accessing the internet through their cell phones are helping to drive the ICT sector in the PSCF GLR – and across Africa. The continent’s growing population and the continental focus via PIDA on infrastructure investment and development – particularly in terms of improving the continents ICT backbone and rural telephony penetration – have spurred investment in this sector. The comparatively high returns garnered in this sector have kept it high on the priority investment list for foreign direct, domestic and capital markets investors. Given the rapid growth of the African population, additional capital to fund the dynamic expansion in the continent’s ICT backbone is desperately needed. In the broadcast sector, understanding the implications and ramifications of the digital transformation (which will create more opportunity for domestic content producers and international content sellers) represents a challenge in the uptake installation and management of technology required for digital migration.

• Key Investment Opportunities – Masts, Networking Services, Fiber Optic System Deployment, Mobile Operators – The key areas emerging for investment in the region involve both infrastructure investment in rolling out the region’s backbone (particularly in the DRC and linking the country with its neighbors with fiber optic cabling) is

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an opportunity. Cellular telephony mast deployment and mobile system operation remains a growth area as each year new consumers are emerging and putting pressure on the existing systems. As more and more users log onto the internet and enterprises are formed as the region’s “Doing Business” environment improve, there is demand for networking services providers to connect people/ businesses to the internet and manage their connections.

Sifiso Dabengwa, CEOwww.mtn.co.za

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: MTN

Founded in 1994, MTN Group is a leading emerging markets mobile operator which is at the forefront of the technological changes sweeping the world. MTN invests significantly in advanced communications networks, connecting more than 203,8 million people in 22 countries across Africa and the Middle East. In the past five years alone, MTN’s capital expenditure has exceeded R130 billion in the countries where it operates.

MTN Group Limited’s head office is in Johannesburg, South Africa, where the Group is listed on the exchange operated by the JSE Limited under the share code “MTN”. With 25,424 employees, it has operations in Afghanistan, Benin, Botswana, Cameroon, Ivory Coast , Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. MTN also has ISP licenses in Namibia and Kenya and a Value Added Service license in Ethiopia.

David Meads, Vice PresidentFor Africa www.cisco.com/web/ZA/index.html

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: CISCO SYSTEMS

Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California. Cisco was founded by Sandra Lerner, Leonard Bosack with John Chambers as the global USA CEO. This multinational corporation designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry and provides services associated with these products. It provides a broad line of products for transporting data, voice, and video within buildings and across campuses. Cisco’s current offerings comprises of the following categories: Switching, Next-Generation Network (NGN) Routing, Service Provider Video, Collaboration, Data Center, Wireless, Security, and Other Products.

Cisco’s East Africa is headquartered in Nairobi and will soon be the key strategic hubs of the sub-Saharan African market, which will also serve as a training and competency centre and a reference site. Cisco has offices in 11 African Countries. South Africa and Kenya are the two focus countries in the Great Lakes Region. Cisco’s presence in Africa is helping to reduce the barrier to investment and finances that organizations in the region are facing by brokering the funding for ICT projects.

Project Name:

World Bank Central Africa Backbone APLS Project

Project Country (ies):

DRC (linking to Rwanda, Uganda, Burundi, Tanzania and Zambia)

Project Sector:

Information Communications Technology

Project Source/Sponsor/Funder(s):

World Bank (private sector co-financing of US$50 million included)

Short Description of the Project:

This project involves the roll out of a fiber optic backbone linked to regional network to improve quality and reduce costs of communications services. Includes loop in Goma area.

The project link DRC to Rwanda and Burundi and to the East African countries networks and the submarine cables of the Indian Ocean and will offer redundancy loops for these networks with DRC and the countries in the region.

Investment Opportunity:

Engineering and system design and management; networking equipment supply and services; data management and storage services/ infrastructure; training provision

Stage of Project:

Project has been submitted to World Bank Board for approval

Type of Project:

ICT - Laying of a fiber optic backbone ICT Fiber Optic

Duration of Project:

Estimate 24 months to develop

Cost of Project:

Estimated US $141 million

Funding Available:

World Bank has allocated US$91 million for the project and private sector investor has committed to co-finance the backbone for $50 million.

Funding Gap:

TBD

For More Information:

Great Lakes Initiative Africa Regional Integration Program, AFCRIMailstop J11-1102The World Bank1818 H St NWWashington, D.C. 20433 USATel: +1 202 458 91 97Fax: +1 202 522 1580URL: www.worldbank.org

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INFRASTRUCTURE

• The Program for Infrastructure Development in Africa – Africa as a continent, and the PSCF GLR as a sub-component spanning Central, East and Southern Africa needs significant development in the infrastructure sphere to help progress the continent’s regional integration aspirations – which undergird the many overlapping Regional Economic Communities that are found. Transport infrastructure and energy infrastructure are arguably the two areas of greatest need at present. Six of the countries within the PSCF GLR are land locked (CAR, Rwanda, Burundi, Uganda, South Sudan and Zambia) but seek to become “land linked” through the expansion of regional road, rail and port infrastructure. Angola, South Africa, Tanzania and Kenya are the major arteries for import and export in the GLR, although the Sudan and Congo also offer port access. The Program for Infrastructure Development in Africa is the continental blueprint for infrastructure development, and a significant focus of the initiative is on transport infrastructure expansion – particularly road, rail and port (sea and air) expansion, refurbishment and development.

• Leading Markets – By far the greatest demand for road and rail infrastructure exists in the Democratic Republic of Congo and efforts to link the west of the country (where the capital, Kinshasa sits), with the agriculture rich middle and east regions of the country and mineral rich east and southern regions of the country (North and South Kivu and Katanga) are critically needed. As navigation via the Congo River is possible, river transportation options are also viable. The DRC has more navigable rivers and moves more passengers and goods by boat and ferry than any other country in Africa. Kinshasa, with 7 km of river frontage occupied by wharfs and jetties, is the largest inland waterways port on the continent. However, much of the infrastructure — vessels and port handling facilities — has, like the railways, suffered from poor maintenance and internal conflict. In terms of sources of engineering firms skilled in infrastructure development, Kenya and South Africa are the leading markets, followed by Tanzania. COMESA commissioned a South African engineering

firm, Makhosi Holdings, to carry out a feasibility study into several Great Lakes railway project routes agreed by COMESA members. Simultaneously, another team of South African engineers was engaged by COMESA to undertake a feasibility study for an alternative rail link in Rwanda, running 150 kilometres (93 mi) southeast from Kigali to Isaka, where it would have connected with the existing meter gauge Tanzanian railway network.

Rwanda understands the importance of infrastructure in the development of a competitive private sector. To this end the government continues to invest heavily in infrastructure. Almost a tenth of Rwanda’s annual budget is committed to transport and other infrastructure. To develop a vibrant private sector, Rwanda is investing in roads, rail and water transport infrastructure with the intent of dramatically reducing the cost of transport to businesses and individuals.18

• Industry Focus – Corridor Development, Industrial Park Establishment, One Stop Border Posts, Trade Infrastructure, and Sea and Lake Port and Airport Development. Across PSCF GLR, there are six important corridors developing: the Northern Corridor running from Mombasa to Rwanda; the Southern Corridor running across the Great Lakes down from the mouth of the Nile river to Zambia; the Central Corridor running from Tanzania through Burundi and Rwanda to DRC and Uganda; the Lobito Corridor running from Benguela Port in Angola through the DRC to Zambia; the Southern Agricultural Growth Corridor running from Da-r es Salaam inward to the western region of Tanzania bordering Malawi; and the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor (LAPSSET) opening up a new trade route from the Lamu port north of Mombasa in Kenya northward into South Sudan and Ethiopia. significantly unlocking the Great Lakes Region. LAPSSET is an example for involving PPPs in its financing. “It will facilitate attraction of increased private sector investment in infrastructure development and management in the country. Currently, there are a number of private sector involvements particularly in the energy, water and railway sub-sectors. More private sector investments are being explored in roads, railways, ports and water services.”19 These corridors involve rail and road development and are meant to expand the flow of commerce in the region. Equally important to regional integration are the efforts underway to establish more one-stop border posts in the region to facilitate greater regional commerce and ease the mobility of cross-border traders (particularly women) who daily trade between neighboring markets in the GLR. Relatedly, calls for the development of border warehousing space have also spurred feasibility and business planning to attract investment capital to develop these structures along with regional markets. Lake and sea port development and expansion have also been highlighted as a regional trade development related priority, and airport development has been identified both to support trade and to spur tourism in the GLR. For agriculture and industrial development, increased efforts have been undertaken to borrow industrial park models prevalent in Asia to crowd in desired types of value adding investors to member states of the region. Rwanda, Zambia, Kenya, South Africa, Tanzania all have industrial parks and Angola and the DRC are developing them.

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• Leading Sectors – Rail, road, sea, lake and airport infrastructure development are the leading areas of focus in the region and the pipeline of projects is significant. Thus, the transport sector has emerged as a leading infrastructure development sector in the PSCF GLR. Road transport is the most dominant mode of motorized transport in Africa, accounting for 80 per cent of freight and 90 per cent of passenger traffic.20

• Leading Private Sector Investors – More of the private sector “investors” in the infrastructure sector are engineering service providers that work via tenders versus outright investors. Nonetheless as a number do have adequate balance sheets to “partner” with government and pursue projects, they do need to be recognized for this capacity. Global firms such as Siemens and General Electric are active in the region, as are infrastructure development companies Aveng LTA Grinaker, Murray & Roberts, Group Five and WBHO. Lafarge Cement in South Africa and subsidiary Bamburi Cement in Kenya are also key regional players in the infrastructure supply industry. MEA logistics firm, in cooperation with Egyptian Castle Investment will be the first to inaugurate a new route between Egypt’s Erqan and Sudan’s Khartoum. The company also plans to open new logistics hub.

• Industry Drivers and Challenges – Economic growth in the PSCF GLR and the appetite for regional trade; demand for more cost effective routes to the sea, particularly for transporting high value mineral goods; and cost effectively moving foodstuffs are all part of the key drivers to growth in this sector in the region. Regional integration efforts driven from the Secretariat’s of the Regional Economic Communities that share membership in the region also have helped push this infrastructure development agenda. Equally important has been the impact of minerals/natural resources for infrastructure deals that China has been willing to enter into – which has helped spur transport infrastructure development in the region, in countries such as Angola, the DRC and South Sudan. Challenges in this sector include the need for increased transparency in the public tenders, inadequate capital to fund the magnitude of demand, inadequate domestic engineering capacity to develop these projects using local expertise and labor, and the risk of acceptable debt ratio exacerbation as countries borrow to try and address their infrastructure deficit.

• Key Investment Opportunities – Corridor Infrastructure, Rail PPPs, Sea and Lake Ports, Water Transport Service Provision and Industrial Parks – The key areas emerging in the region for infrastructure development include the development of infrastructure along the various corridors (i.e. truck stops, office and storage infrastructure, fuel stations, restaurants), where capacity is undertaking rail PPP projects, and given the ever growing demand, sea and lake port development presents strong opportunities. Relatedly, lake transport for people and goods presents significant opportunities and given the regional desire to add increased value to local products (both agricultural and mineral products), industrial parks also present attractive investment opportunities. A wide variety of banks and funds are making loans available for infrastructure across the continent. The US$320-million

African Infrastructure Investment Fund is a joint venture between the Old Mutual Investment Group (Omigsa) and Macquire Capital with investments from the IFC, the Netherlands Development Finance Company and the Development Bank of Southern Africa (DBSA). The Emerging Africa Infrastructure Fund (EAIF) is an initiative of a group of European nations who collectively call themselves the Private Infrastructure Development Group (PIDG). Founding members are the UK (Department for International Development), Netherlands, Switzerland and Sweden. Long-term foreign currency financing is available for sub-Saharan infrastructure projects. A new fund appeared on the market in 2012: US$800-million has been raised by South African company Ethos Private Equity.

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Dr. Gachao Kiuna, CEO and Managing Director www.transcentury.co.ke

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: TRANSCENTURY LTD.

TransCentury is an Infrastructure Company listed on the Nairobi Stock Exchange (Ticker – TCL:KN) with three operating divisions across 14 countries in East, Central and Southern Africa. TCL operating divisions include: • PowerInfrastructure:Manufacture

of Electrical Cables, Conductors, Transformers and Switchgear

• InfrastructureProjects:CriticalEnergyand Transport Infrastructure to Support Key Pillars of the Domestic and Export Economy

• Engineering:Provisionofmechanicalengineering, civil engineering, transport & logistics and creneage & erection services

The company was established in 1997 by a group of leading Kenyan professionals and investors, who were appreciative of the opportunities to invest in growth sectors in Africa and provide such investments with the benefit of their corporate experiences. In April 2009, the company’s shares became available to qualified investors in an over-the-counter exchange operated by Dyer & Blair Investment Bank, as part of the original shareholders aims to provide a broad base of shareholders with access to the Trans-Century success story. Today Trans-Century is a publicly listed Company on the Nairobi Stock Exchange.

Bruno Lafont, CEO

www.lafarge.com

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: LAFARGE

Starting out in 1833 as a limestone mining company, Lafarge transformed itself and now has a presence in 62 countries. Lafarge is a French industrial company specializing in three major products: cement, construction aggregates, and concrete. The company has become a world leader in building materials. In April 2013, Lafarge adopted a new brand baseline “Building better cities”. It reflects the Group’s ambition to contribute to the improvement of cities by developing innovative construction products, solutions and systems.

In Africa, Lafarge has 11,171 employees, with 23 production sites, 27 aggregate quarries and 116 ready mix plants. The company is in five GLR states: Zambia, Tanzania, Uganda, Kenya and Rwanda.

On April 7, 2014, Lafarge and Holcim announced they had agreed to terms on a “merger of equals”. The merger would entail Lafarge stock being converted into Holcim stock on a 1:1 basis. Former Holcim shareholders would own 53% of LafargeHolcim. The new company would be based in Switzerland and have a manufacturing capacity of 427 million tons a year would vastly exceed the 227 million ton capacity Anhui Conch, the current industry leader in that category.

Project Name:

Trade Mark East Africa Northern Corridor Roadside Station Project

Project Country (ies):

Kenya, Uganda, Rwanda, Burundi, and DRC

Project Sector:

Transport Infrastructure

Project Source/Sponsor/Funder(s):

Trademark East Africa (interested in private sector participation via PPP)

Short Description of the Project:

The Northern Corridor Transit and Transport Coordination Authority and Trade Mark East Africa in their efforts to facilitate trade and transport along the Northern Corridor have come together with a project aiming at the establishment of the Roadside Stations (RSSs) program aims to enhance road safety and health along the RSSs as a launch pad. Other benefits include better health, safety and security for communities along the Northern Corridor and enhanced protection of the environment.

Investment Opportunity:

Storage facility development, Office building development, Other infrastructure, Management services, Logistics

Stage of Project:

A Feasibility study has been undertaken by TMEA

Type of Project:

Transport Infrastructure

Duration of Project:

Estimate 24 months to implement

Cost of Project:

TBD

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

2nd Floor, Equatorial Fidelity CentreWaiyaki Way, WestlandsP.O. Box 313 00606Nairobi, KenyaTel: +254 20 423 3000Email : [email protected]: www.trademarkea.com

Selected Illustrative Infrastructure Sector Projects

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Project Name:

Lobito Corridor

Project Country (ies):

Angola, DRC, Zambia

Project Sector:

Transport Infrastructure (Sea Port, Rail, Airport) Energy Refinery

Project Source/Sponsor/Funder(s):

ICGlR (Supporter), Governments of Angola, DRC and Zambia (interest in private investment vi a PPP(s))

Short Description of the Project:

The Corridor of Lobito is an important array of integrated infrastructure, formed by various enterprises and economic units, mainly in the sectors of transportation and communication. Historically, it was one of the busiest transportation routes in the Southern and Central Africa Regions. The Benguela Railway was the main carrier along the Corridor of a whole range of produce from within and outside the region, including copper, cobalt, coal zinc, lead timber, sugar, maize, coffee, etc. During the Angola civil war the railway activity ceased and due to insecurity in the 1990s, the section of the railway in the DRC stopped operations in 1997. When these operations were suspended, Zambia was forced to seek longer routes (including via ports of Dar es Salaam, Beria, and Durban) for exportation of its coper and its many other produce. The aim of this project is to rehabilitate the entire railway system from Lobito on the Atlantic through Lubumbashi in the DRC to the Zambian Copperbelt.

Investment Opportunity:

Engineering; Construction; Storage facilities, Management, Transport Equipment

Stage of Project:

With assistance from China the railway has been completed in Angola to the DRC border.

Type of Project:

Rail, port and airport rehabilitation

Duration of Project:

Estimate 60 months to develop

Cost of Project:

USS600 million

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

See (http://portandcorridor.org/wp-content/uploads/2013/03/Lobito-Lusaka-corridor.pdf and http://www.icglr.org/images/pdf_files/project_3-3-3-_libito_corridor_project.pdf

Project Name:

Southern Corridor Project

Project Country (ies):

Zambia, Tanzania, Burundi, Rwanda, DRC, Uganda

Project Sector:

Transport Infrastructure

Project Source/Sponsor/Funder(s):

ICGLR ( Seeking private sector participation via a PPP)

Short Description of the Project:

In their commitment to cope with the ever present and onerous problem of finding easy access to the sea, the countries of the Great Lakes, including Burundi, DRC, Rwanda, Uganda Zambia, have expressed an interest in the development of the Southern Corridor (Great Lakes Region Railway) Project. The Project entails interlinking the lakes with a railway system, and connecting the same with both the Southern and Eastern Africa railway systems. The project would therefore provide an alternative transportation route for goods and people in and from the region. Eventually, the region could be connected with the Benguela Railway (Corridor Lobito Project).

Investment Opportunity:

Engineering services, Construction, management, transport Equipment

Stage of Project:

A concept note has been undertaken by ICGLR

Type of Project:

Transport Infrastructure

Duration of Project:

Estimate 12 months to implement feasibility study, 48 months to implement project

Cost of Project:

US$ 3.5 billion

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

Executive Secretariat of the International Conference on the Great Lakes Region (ICGLR)PO Box 7076Avenue du Government, BRB Building, Second floorBujumbura – BurundiTel: +257 22 25 68 24/5/7/9Fax: +257 22 25 6828Email: [email protected]: www.icgrl.orgOther sources: http://www.macauhub.com.mo/en/2015/01/09/angola-and-china-open-atlantic-to-african-neighbours/

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Project Name:

CEPGL One Stop Border Posts (OSBP)

Project Country (ies):

Burundi, Rwanda, DRC

Project Sector:

Transport Infrastructure – Border Post

Project Source/Sponsor/Funder(s):

CEPGL and Member States (private participation via PPP)

Short Description of the Project:

The border posts between the three member states of CEPGL ( Burundi, DRC and Rwanda) are heavily used by both pedestrians and cargo vehicles hauling commercial goods. However, at present in their current configuration of two step border crossing, they do not provide for efficient movement of people nor goods within the region.

Thus it is suggested that 4 one stop border posts be established at: 1) Gatumba, Burundi-Kavimvira, DRC;2) Bukavu, Burundi, Cyangugu, Rwanda; 3) Goma – DRC, Gisenyi – Rwanda, Akanyaru, Rwanda/Burundi and Kanyaru

- Burundi

Investment Opportunity:

Border Post Management, Storage Facilities, Construction

Stage of Project:

A concept note has been undertaken by CEPGL

Type of Project:

Transport Infrastructure (Border Post Construction/Rehabilitation)

Duration of Project:

Estimate 24 months

Cost of Project:

US$12 million

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

Secretariat Executif Permanent de Ia CEPGLBP 58 GISENYI/RUBAVU Republique du RwandaTel: +250 280 30 30 40/40/50/60Email: info@cepgl. orgURL: www.cepgl.org

Project Name: Lamu Port and Southern Sudan-Ethiopia Transport (LAPSSET) CorridorProject Country (ies): Kenya, South Sudan, Ethiopia and UgandaProject Sector: Transport Infrastructure (Road, Rail, Port)Project Source/Sponsor/Funder(s): Kenya, South Sudan governments (Seeking private sector participation via a PPP(s), The World Bank, African Development BankShort Description of the Project:Managed under the Kenya based “LAPSSET corridor Development Authority (LCOA)”, this initiative involves the development of a new transport corridor from the new port of Lamu through Garissa, Isiolo, Mararal, Lodwar and Lokichoggio to branch at Isiolo to Ethiopia and Southern Sudan. It will comprise of a new road network, a railway line, oil refinery at Lamu, oil pipeline, lsiolo and Lamu Airports and a free port at Lamu (Manda Bay) in addition to resort cities at the coast and in lsiolo. It will be the backbone for opening up Northern Kenya and integrating it into the national economy and provide port access to south Sudan and Ethiopia (and alternative access to other states in the Great Lakes region).

The World Bank has funded the feasibility study and design of the transport corridor linking Kenya to southern Sudan. Feasibility studies for corridor component and the design of three (3) berths and associated facilities in Lamu are complete. The Kenya government has set aside Kshs.2 billion for the construction of the three berths. Tendering process for the construction of the three berths is ongoing.Investment Opportunity: Engineering, construction, storage, logistics, rail and road developmentStage of Project: The project has commenced development as part of the Kenyan governments Vision 2030 priority projects program.Type of Project: Infrastructure (Rail, roads, airports, port)Duration of Project: Started already, 5-7 years conservatively Cost of Project:US $24 billion dollars (i.e. US$ 484 million has already been awarded to China Communication Construction & Co to build the first three Berths)Funding Available:The Kenyan government has allocated 2% of national GDP annually to support the project. The World Bank and African Development Bank are also supporting components.Funding Gap:TBD 4 The Government has prioritized the participation of private sector in the development of LAPSSET corridor infrastructure through infrastructure bonds and equity participation among other money market instrumentsFor More Information:Chester House BuildingP.O. Box 45008-00100Koinange Street, NairobiTelephone: +254-(0)20-2218968URL: http://www.lapsset.go.ke Other sources: http://www.reuters.com/article/2013/04/11/kenya-port-lamu-idUSL5N0CX38D20130411

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Project Name:

Kisumu Seaport and other Lake Victoria Ports

Project Country (ies):

Kenya, Uganda, Tanzania

Project Sector:

Transport Infrastructure – Lake Port rehabilitation and expansion

Project Source/Sponsor/Funder(s):

EAC, Kenya Government (seeking private participation via PPP)

Short Description of the Project:

Since the 1900s, Lake Victoria ferries have been an important means of transport between Uganda, Tanzania and Kenya. The main ports on the lake are Kisumu, Mwanza, Bukoba, Entebbe, Port Bell and Jinja.

This project involves development of Kisumu Port into a modern commercial Lake Port to serve the growing: trade in the East African community region on a build-operate-transfer basis. The goal is develop these ports, provide requisite physical and super infrastructure, develop a mechanism to effectively manage these ports and ensure their efficient utilization. Private sector parties will be invited to design, finance, build, operate and transfer. The Kenya Port Authority (will own the port and be the landlord.

Investment Opportunity:

Port Management, Engineering, Storage, Logistics

Stage of Project:

Recruitment of Transaction Advisors: Negotiations with preferred bidder are complete. Contract signing and commencement of consultancy service is envisaged in February 2015.

The project forms part of a list of 68 proposed national PPPs.

Type of Project:

Transport Infrastructure (lake port rehabilitation/ development

Duration of Project:

Estimate 36-48 months

Cost of Project:

US$150 million

Funding Available:

Kenya government has begun this project

Funding Gap:

TBD

For More Information:

Kenya Ports AuthorityPO Box 20072 – 00200 NairobiTel: +254 693 1000Email: [email protected] http://www.pppunit.go.ke/index.php/news/2015/02/ppp-pipeline-progress-report-for-quarter-one-2015

Project Name: Brazzaville, Congo – Kinshasa, DRC Road-Rail-Bridge ProjectProject Country (ies): DRC, Republic of CongoProject Sector: Transport Infrastructure – Multi-modal (rail, bridge, road)Project Source/Sponsor/Funder(s): DRC and Republic of Congo Governments, ECCAS (seeking private participation via PPP)Short Description of the Project:This rail and road bridge will link the two capital cities of Brazzaville (Republic of Congo) and Kinshasa (DRC), across the Congo River. The railway line will be connected with the Lumbumbashi-Ilebo line. It will also complete the missing road link of the Trans-African Highway: Tripoli – Windhoek – Cape Town, and a rail link for the Pointe Noire – South Eastern Africa Railway Network. The sub-project involves only the construction of Brazzaville-Kinshasa Road/Rail Bridge across the Congo River, the construction of a one-stop border post (OSBP), equipping of border post and training/capacity building.

The bridge will promote regional integration and economic development in both countries, and also serve as a inter-state and sub-regional trans-African link. This project has been identified by the African Union as a priority regional and continental project under the “Presidential Infrastructure Champion Initiative” (PICI). ECCAS, COMESA and SADC are key supporters of this initiative.Investment Opportunity: Engineering, Rail System Management, ConstructionStage of Project: • The Joint Technical Monitoring for the bridge section of the project has

been appointed.• Feasibility study and detailed design are being prepared under the

supervision of ECCAS and financed by AfDB.• The railway section of the project will be the responsibility of the DRC

government, which has already formed a Railway Technical Committee to oversee the pre-feasibility study.

Type of Project: Multi-modal Transport Infrastructure – road, rail, bridgeDuration of Project: Estimate 36-48 monthCost of Project:US$1.65 billionFunding Available:TBDFunding Gap:TBDFor More Information:See http://addisababa.mfa.ir/uploads/Brazzaville_-_Kinshasa_19953.pdf http://au-pida.org/kinshasa-brazzaville-bridge-road-and-rail-project-rail-ilebo http://www.nepad.org/system/files/Fact%20Sheet_FINAL.pdf

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Project Name: Central Multimodal Transport CorridorProject Country (ies): Tanzania, Uganda, Rwanda, Burundi, and DRCProject Sector: Transportation Infrastructure - RoadsProject Source/Sponsor/Funder(s): COMESA, EACShort Description of the Project:This project entails the upgrading and modernization of roads between Tanzania, Uganda, Rwanda, Burundi and the Democratic Republic of Congo in order to improve transport efficiency in the region. More specifically the modernization of 176 kilometres of highway and upgrading of 890 kilometres of road comprising five road-related smart corridor modules, including the creation of seven one-stop border posts. A rail module will be implemented later.

Since the transport system will be more efficient, people and goods will easily cross borders, while transport capacities and regional trade will increase. This will add to cost savings and speed up regional integration in East Africa.Investment Opportunity: Engineering, construction, storage facility development, logistics, road developmentStage of Project: A public-private partnership structure and a toll system are proposed for this project, and these need to be accepted by all participating countries. The role players must harmonize the norms and standards and the financial plan for the project.

Each project within the program is currently at different stages. See http://www.au-pida.org/central-multimodal-transport-corridorType of Project: Multimodal Transport InfrastructureDuration of Project: 5-10 years conservativelyCost of Project:TBDFunding Available:TBDFunding Gap:TBDFor More Information:Central Corridor Transit Transport Facilitation AgencyPosta House Ghana AvenuePO Box 2372Dar es Salaam, Tanzania T: +255 222 127 149E: [email protected] W: http://centralcorridor-ttfa.org Other source: http://www.au-pida.org/central-multimodal-transport-corridor

MINING

• The African Mining Vision and the African Minerals Development Centre – In 2009, the African Heads of State through the African Union voted to adopt the “African Mining Vision” (see www.africanminingvision.org). The AMV among other things calls for responsible investment in the extractive industries sector and increased beneficiation of Africa’s minerals on the continent to drive industrial development in and around mineral endowed nations. The AMV also called for the development of a continental African Minerals Development Centre (www.uneca.org/amdc), which with support from the UN Economic Commission for Africa was launched in December 2013. The mission of the Centre is to work with member States and their national and regional organizations to promote the transformative role of mineral resources in the development of the continent through increased economic and social linkages. A key objective of the Centre is to ensure that Africa’s interests and concerns in this lucrative sector are properly articulated and internalized throughout the continent, for the benefit and prosperity of all. The AMDC advocates for the enhanced use of geological and geospatial information to manage long-term developmental outcomes in African mining countries, as well as a well-governed African mining sector that is socially and environmentally accountable. The Centre also aims to contribute to the fostering of a highly skilled and knowledge-driven mining sector which delivers greater economic and social benefits as a result of high productivity levels.

• Leading Countries – Most of the countries in the PSCF GLR have mineral resources in global demand. South Africa has the most developed overall mining sector, but Zambia (copper), the DRC (cooper, gold), Angola (diamonds, oil), Congo (oil), Sudan (oil), and Tanzania (gold, tanzanite) are linked into global value chains with their respective resources. Beneficiation in these sectors represents an emerging opportunity as all of the countries seek to add increased value to their outputs as most countries export raw materials and import the finished derivative products that are made from their natural resources.

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• Industry Focus – “Responsible Investing” – Across the continent, and definitely within the region, there is a growing focus on ensuring that those who are active in the mining sector abide by good global practices and do not traffic in “conflict minerals”. One such example is the Extractive Industry Transparency Initiative (EITI): a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources. EITI compliant countries implement the EITI Standard to ensure full disclosure of taxes and other payments made by oil, gas and mining companies to governments. These payments are disclosed in an annual EITI Report, which allows citizens to see for themselves how much their government is receiving from their country’s natural resources. (http://eiti.org/eiti). Another example is the Kimberley Process (KP), which is a joint governments, industry and civil society initiative to stem the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments (http://www.kimberleyprocess.com/).

• Additionally, value addition/ beneficiation are also important industry – and governmental – concerns. A recent leading example of shifting value addition, and hence beneficiation, to the country of resource is the move of Botswana and DeBeers. In 2013, De Beers relocated all its rough diamond sales activity from London to Gaborone. The First International Sight (an awards program that stimulates the local jewelery design industry and strengthens the image of diamond jewelery) for African products took place in November 2013. A significant step toward establishing Botswana as a major diamond trading country will have been achieved with skills, investment and infrastructure coming together in southern Africa.21 As job creation is of importance in most of the countries in the PSCF GLR, cooperative mining to organize artisanal miners into more dynamic mining entities is also gaining focus within the development community and among impact investors (see below – Chambers Federation South Kivu DRC Cooperative Mining Project).

• Leading Sub-Sectors – Each country in the region is focused on extracting the natural resources that it has. Copper, Cobalt, Gold, Diamonds, Coltan, Zinc, Tin, Tungsten, Uranium, Silver, Coal, Niobium, Manganese, and Limestone are but some of the minerals (along with crude oil and natural gas) found in relative abundance in the region. The World Bank plans to launch a $1bn plan to map Africa’s natural resources with the aim of delineating more clearly the continent’s uncovered mineral wealth. The project, dubbed the Billion Dollar Map, “will unlock the true worth of Africa’s mineral endowment,” said Tom Butler, mining specialist at the Bank’s private finance arm, the International Finance Corp. Speaking in Cape Town, South Africa recently, Butler said most of Africa’s subsoil resources have not been surveyed. Doing so, in a public way, would be useful to policy makers, investors and the public, helping to boost development, he said, according to prepared remarks. “There is yet an enormous amount of wealth left to discover,” he said. “Coupled with in-country training and institutional support and the work of exploration companies, this initiative will unlock the true worth of Africa’s mineral endowment.” The World Bank, which calls

accessible data on resources a “public good”, said it has already invested over $200m in developing geological data for Africa over the past 10 years.22

• Leading Private Sector Investors – Leading global mining houses such as DeBeers, Anglogold Ashanti, Kumba Iron Ore, and BHP Billiton operate alongside less well known mining houses such as Gecamines, Katanga Mining Ltd., Lundin Mining, Mawson West, Tene Fungureme Mine, Konkola Copper Mine, North Mara Gold Mine, and Buzwagi Gold Mine in the PSCF GLR. “CEO Mark Bristow said that Randgold, which owns a 45% stake in the Kibali gold mine in DRC and is the operator, had the goals of defining the ore body’s full potential, redesigning the existing feasibility study, creating a supply line from Doko to the Ugandan border, securing the project area in partnership with the central and provincial governments, resettling more than 4 000 families from 14 villages in a new model town, and starting production in 2015.”There were few people outside the Randgold management team and the DRC who believed that we could achieve this. But in short order we produced a blueprint for a much larger operation than originally envisaged, among other things, increasing mineral reserves to 11-million ounces of gold, accelerating the construction programme and bringing first gold production forward to December 2013,” Bristow said. “This would not have been possible without the support and cooperation of the Congolese authorities and the local community,” he noted.23 Toronto-listed Uranium One, operator of the Mkuju River project owned by the Canadian uranium producer’s majority shareholder, Russia’s JSC Atomredmetzoloto (ARMZ), plans to build a uranium mine in southern Tanzania with an updated resource of 119.4 million pounds of uranium. The AIM-listed African Eagle Resources Plc is developing a nickel mine in northern Tanzania with the capacity to produce around 27,000 tonnes per annum of nickel. Barrick Gold Corp and Glencore Xstrata are also jointly developing a nickel project in Tanzania with a resource of 37.2 million tonnes grading 2.63 per cent nickel.24

• Industry Drivers and Challenges – The industrial growth in China and India over the past decade has been an important demand driver for African mineral resources. Also a new driver particularly for output from the eastern DRC, Tantalum has emerged for consumer electronics manufacturers who use Tantalum to produce processors, motherboards, smart phones, printers, desktop and laptop computers, semi-conductors and bluetooth devices. The rising middle class in Africa, and elsewhere in the emerging world, has also increased demand for gold, silver and diamonds. Global and regional demand for energy and petroleum products as well as the price of crude oil has steadily risen. Challenges in the industry come from the close association of the sector with rent seeking behavior from investors, and armed conflict in mineral rich regions. In 2014, Angola plans to produce 7 million carats of diamonds, estimated at $1 billion. However, the Angolan government estimates that it loses $375 million annually from diamond smuggling. Getting investors to practice “responsible investment” is the main task to undertake. Thus, improvement in the governance structure(s) in the region will need to be a major focus toward the achievement of peace and security in the region – particularly within the mineral rich DRC.

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Kala PingaChief Executive Officer

www.mwanaafrica.com

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: MWANA AFRICA PLC

Mwana Africa PLC is a pan-African resources company with operations in Zimbabwe and South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo (DRC), Angola, Ghana and Botswana. The group has a diverse asset base, including gold, nickel, copper, cobalt and diamonds.

In October 2005, Mwana Africa became the first African-owned, African-managed

resource company to be listed on the London Stock Exchange’s Alternative Investment Market (AIM), through a reverse takeover of African Gold Plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003. The company intends to pursue further mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders. The Company has operations in DRC, South Africa, Angola, Botswana and Zimbabwe.

Mwana Africa reported a group revenue up to 30.5% to $142.5m (2013: $109.2m) for the year ending 31 March 2014.

Sam WalshChief Executive www.riotinto.com

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: RIO TINTO

Rio is a British-Australian multinational metals and mining corporation with headquarters in London, United Kingdom, and a management office in Melbourne, Australia. The company was founded in 1873 and is in the production of many commodities, including aluminum, iron ore, copper, uranium, coal, and diamonds.

Although primarily focused on extraction of minerals, Rio Tinto also has significant

operations in refining, particularly for refining bauxite and iron ore. The company has operations on six continents but is mainly concentrated in Australia and Canada, and owns its mining operations through a complex web of wholly and partly owned subsidiaries. Its head office in the United Kingdom is in the City of Westminster, London, while its Australian head office is in the City of Melbourne.

Rio Tinto has its operations in Australia, North America, Asia, Europe, Africa and South America and employs about 66,000 in more than 40 countries across the six continents. In the GLR, Rio Tinto is in the Republic of Congo and the Democratic Republic of the Congo.

Rio Tinto’s five product groups are Aluminum, Copper, Diamonds & Minerals, Energy and Iron Ore which are supported by their Exploration and Technology & Innovation groups. In 2011, Rio Tinto reported a global asset value of US$ 96 billion.

Project Name:

Uganda Oil Refinery

Project Country (ies):

Uganda

Project Sector:

Mining – Petroleum Refinery

Project Source/Sponsor/Funder(s):

Uganda Government (Seeking private sector participation via a PPP)

Short Description of the Project:

A lead investor for the 60,000 barrels-a-day refinery is vital for Uganda’s vast oil fields that are believed to contain as much as 3.5 billion barrels of crude. Russia’s RT Global Resources and South Korea’s SK Energy Co have been shortlisted for the project. Negotiations, with the winning bidder, are expected to be completed by February 2015 to pave way for the start of construction. The refinery will be developed under a PPP with the lead investor taking 60% stake and the government taking the remaining equity.

The refinery and the oil field are both expected to come to stream around 2018 and serve the national and regional markets. Uganda also plans to start awarding fresh oil and gas exploration licenses next year after an eight-year freeze, in attempt to speed up the development of its largely unexplored oil industry.

Investment Opportunity:

Engineering, oil refinery systems management, procurement services

Stage of Project:

Two potential private sector bidders have been shortlisted and should be announced in February 2015.

Kenya Government to acquire 2.5% stake at an estimated $67.2 million.

Type of Project:

Development of an oil refinery

Duration of Project:

3 years

Cost of Project:

USS2.5 billion

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

sea http://www.oilinuganda.org/categories/infrastructure

Selected Illustrative Mining Sector Projects• Key Investment Opportunities – Mining, Beneficiation/Processing – This sector offers straight forward investment opportunities in the regions where there are mining resources and reserves to exploit. Regional governments are also looking for partners with whom they can work to add value to their outputs and this offers another area of investment potential.

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TOURISM

• Tourism as an Economic Development Driver – With international tourist arrivals growing by 6% in the region for the second consecutive year, in January 2014 Africa was recognized by the UN World Tourism Organization as one of the fastest growing tourism regions in the world. Between 2000 and 2013, international tourist arrivals more than doubled (from 26 million to 56 million). By 2030, UNWTO forecasts this figure to reach 134 million. Taleb Rifai, secretary-general of the UNWTO stated, “Africa has been one of the fastest-growing tourism regions of the last decade… With the right investment, tourist arrivals will continue to grow, investors will see excellent returns, jobs will be created and the entire economy will benefit” (Africa Renewal, 2012). However, addressing the proliferation of visa requirements, the need for improved investment in hotel stock, and the need to improve airport infrastructure and air connectivity within the continent have emerged as sector constraints to be addressed. The four members of the East African Community, Burundi, Rwanda, Uganda, and Kenya, have created the first regional visa to stimulate tourism among their respective countries. The Inter-Governmental Authority for Development, with support from the UN Economic Commission for Africa, also has helped develop a 10 year sustainable tourism master plan (see http://www.ktf.co.ke/news.asp?ID=83) to help member states address critical issues around human capital development in the sector, safety and security concerns, infrastructure, transportation and marketing issues related to increasing their respective earnings from tourism.

• Leading Countries – In the PSCF GLR, the leading tourism destinations are South Africa (leisure, cultural, business, eco-tourism and sport tourism), Tanzania (eco-tourism, leisure), Kenya (leisure, business, eco-tourism), and Zambia (eco-tourism), although Uganda and Rwanda (cultural) have seen significant growth in eco-tourism (Gorilla watching) over the past decade. Kenya and South Africa are by far the leading business tourism destinations as they serve

Project Name:

Chambers Federation South Kivu DRC Cooperative Mining Project

Project Country (ies):

DRC

Project Sector:

Mining – Gold/Industrial Diamonds

Project Source/Sponsor/Funder(s):

Chambers Federation (seeking private investment, equipment finance)

Short Description of the Project:

This is an ongoing impact investment into the South Kivu region of DRC. Cooperative structures have already been setup and five offices built in every major gold producing region in the area (Bukavu, Kaziba, Shabunda, Fizi-Misisi, & Minembwe). Experienced US based company already managing cooperatives in the area and creating a fair trade market for cooperative products such as gold, diamonds, copper, coltan, and several others.

Phase 3, which requires further investment, implements low cost, modern extraction equipment to drastically increase the cooperatives production. The company manages the cooperatives, provides security, processes the ore and exports it to the international market and splits profits with the cooperatives. A portion of the company’s profits is also reinvested back into the community through CSR and diversified for-profit businesses. Cooperatives exceed 200,000 miners, therefore scalability and impact is substantial.

Investment Opportunity:

Mineral Extraction, Processing, Aggregation, Beneficiation and Export

Stage of Project:

Legal, infrastructure, management & sales systems in place

Type of Project:

Development of a cooperative mining project

Duration of Project:

3 to 6 months for Phase 3 implementation

Cost of Project:

US $5 million, not to exceed, phased over 2 years

Funding Available:

TBD

Funding Gap:

US $700,000 for next phase (3); Remaining Phase 4 and beyond TBD, not to exceed $5,000,000 in total

For More Information:

Matthew ScottPresident, Chambers FederationT: +254 725 039 690Email: [email protected] See http://www.chambersfederation.com/drc-congo-mining-project/

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as regional commercial centers but other countries in the region (Zambia, Rwanda, Tanzania and the DRC) are also hosting an increasing number of events.

• SouthAfrica’stourismsectorwasgivenamassiveboostby the successful hosting of the World Cup in 2010, when the country received a record-breaking 8.1 million foreign visitors. Despite tough global economic conditions, tourism grew in 2011, with 8.3 million international tourists. In the wake of an increase in local and international conference tourism of 12% and 6% respectively, in 2012, Kenya continues to rank in the Top 5 most popular MICE (meetings, incentives, conferences and events) tourism destinations in Africa. Likewise, in Tanzania, tourism has strong growth potential, and the second major powerhouse in East Africa. Despite the slow global economic recovery, inbound tourism flows continued to record strong growth in 2011 arrivals, due to the vigorous promotional campaigns abroad by the Tanzania Tourist Board through international travel fairs and trade missions. In Rwanda, the number of inbound arrivals continues to grow even when international tourists are becoming increasingly choosy when selecting destinations due to the adverse economic climate. Rwanda is well known for its mountain gorillas, with gorilla trekking being its main tourist attraction, contributing greatly to the nation’s profits.

• Industry Focus – “Sustainable Tourism”, Infrastructure and Service Improvement – Within the region there is the growing appreciation that tourism represents a potentially important job creation sector to be developed and further exploited. While eco-tourism (game parks, animal watching, mountain climbing) are relatively easy to promote and predicated on having unique natural wonders, increasingly countries in the PSCF GLR are seeking to develop their business tourism or MICE sector offerings as well by building convention centers and hotels, developing convention bureaus and improving their connectivity to make their nations more attractive for the growing number of events that are being held across Africa. There has been over the past decade an explosion in the number of hotels being built in Africa, and within the region, and the number of international hotel operators that have become interested in the African market. Cruises, Hop On-Hop Off sightseeing buses, time shares, big game hunting and more sophisticated types of safaris have also become more prevalent in the past ten years. In response, regional nations have worked hard to develop trans-frontier natural reserves and game parks, and to collaborate to sustain the natural habitats of the resident animals that are drawing increasing numbers of visitors.

• Intra-regional tourism – For many decades, Europe has been the main source for tourism. Since the Eurozone experienced the economic downturn in 2008, there has been a huge shift. Africa is now focusing on itself, as well as Asia. Intra-regional tourism is an ever-expanding market, and key to most African countries’ tourism and its future growth. In South Africa, the regional African tourist market is the most important tourist market, contributing more than 73% of total tourist arrivals and more than R50 billion in revenue in 2011. There are a rising number of arrivals from neighboring countries including Swaziland, Lesotho,

Mozambique and Zimbabwe. In Kenya, the tourism sector is growing, as it has becoming a center of commerce in East Africa for both business and leisure; as a result there has been a substantial increase in tourist flows from East and Central Africa.

• Leading Sub-Sectors – Hard infrastructure (hotels) and related management services remain key segments of the market that are growing and attracting investors and service providers. The MICE industry is another growing industry as intra-regional business travel continues to grow, regional industry exhibitions emerge, and regional and international conferences try Africa as a new meeting destination.

• Leading Private Sector Investors – Leading hotel management and hotel development companies active in the PSCF GLR region include Southern Sun, Legacy Hotels, Protea Hotels (acquired by Marriott Hotels in 2014), Sun International, City Lodge, Kempinski, Serena, Lonhro, along with Inter-Continental, Hilton, Accor, Sheraton and Radisson Blu. Leading airlines in the region include South African Airways, Kenya Airways, TAP, Precision Air and low cost regional carriers like Kulula Airlines. The tour management sector is dominated by smaller national and regional (a handful) actors. Alex Kyriakidis, President and Managing Director of Marriott International’s Middle East and Africa (MEA) region said, “We are delighted that… the [Protea] team… is now joining the Marriott International family. With the addition of Protea’s regional knowledge, expertise and infrastructure, we are incredibly well-positioned to continue growing in one of the fastest expanding economic markets in the world” (Protea Hotels, 2014).

• Industry Drivers and Challenges – Increasing disposable income (leisure travel), expanding economies (business travel), growing value for money perceptions (African currencies are significantly lower than European, North American and most Asian currencies), increasing sport tourism and increasing eco-tourism offerings are all part of the improved performance witnessed in regard to the African tourism sector. Challenges in the region, particularly within the PSCF GLR, include: a lack of adequate hotel types and quality offerings; a need for improved human capital development to expose leisure industry workers to global good practice; a need to improve ground transport offerings in many countries (taxis – including metered cabs), buses; and need for improved modern amenities such as Wi-Fi internet and toilets.

• Key Investment Opportunities – Infrastructure, Training, Energy, Transportation – Africa’s natural beauty (mountains, lakes, waterfalls, forests, oceans, animals, rural communities, etc.) is unparalleled and untapped. The key areas where tourism sector investment opportunities are emerging include hotel infrastructure development, conferencing venture development, novel infrastructure such as the cable car that Rwanda wants to develop, as well as training and capacity development offerings to create a cadre of capable tourism sector professionals to serve the continent’s growing number of visitors. As more emphasis is being placed on green development, opportunities also exist for companies seeking to bring energy efficiency

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Project Name:

IGAD Sustainable Tourism Roadmap

Project Country (ies):

Kenya, South Sudan, Sudan, Uganda

Project Sector:

Tourism

Project Source/Sponsor/Funder(s):

UNECA, IGAD and Governments of Kenya, Sudan and Uganda (Seeking private sector participation via a PPP(s))

Short Description of the Project:

Supported by UNECA and sponsored by IGAD and its member states, this dynamic program seeks to help each country improve its tourism offerings in the area of business tourism, eco-tourism, and cultural tourism and involves both skills development, training and infrastructure development.

The initiative thus involves the development in each country of: Policy and Regulatory Frameworks; Tourism Safety and Security; Tourism Product Development; Tourism Infrastructure, Tourism Marketing; Human Resource Development, Research and Development, and Tourism, Natural and Cultural Heritage Conservation.

Beyond the four PSCF GLR states, the other IGAD member states Djibouti, Eritrea, Ethiopia and Somalia are also intended beneficiaries of the initiative.

Investment Opportunity:

Eco tourism, development of infrastructure, transportation

Stage of Project:

A Sustainable Tourism Master plan 2013-2023 has been developed

Type of Project:

Development of tourism in the IGAD 8 member states (of which 4 are PSC Countries)

Duration of Project:

Ongoing

Cost of Project:

TBD

Funding Available:

TBD

Funding Gap:

TBD

For More Information:

See http://igad.int/http://www.uneca.org/sites/default/files/publications/uneca_stmp.pdf

Selected Illustrative Tourism Sector Projects

Titus NaikuniManaging Director and Chief Executive

www.kenya-airways.com

A DOMESTIC GREAT LAKES REGION INVESTOR PROFILE: KENYA AIRWAYS

Kenya Airways is the flag carrier of Kenya. The company was founded in 1977, after the dissolution of East African Airways. The carrier’s head office is located in Nairobi with its hub at Jomo Kenyatta International Airport. Kenya Airways is currently a public-private partnership with the Government of Kenya as the largest shareholder (29.8%).

Kenya Airways is widely considered as one of the leading Sub-Saharan operators. The carrier was ranked fourth in January 2013 among the top ten ones that operate in Africa by seat capacity, behind South African Airways, Ethiopian Airlines and Egypt Air. The airline became a full member of Sky Team in June 2010, and is also a member of the African Airlines Association since 1977. As of June 2013, the company had 4,006 employees.

The Nairobi-based airline posted net income of 384 million shillings ($4.5 million) in November 2013 and has been able to grow its African and Asian operations despite the challenges experienced in 2013. The carrier has now added capacity through a mix of increased frequencies or up-gauging of aircraft in response to higher demand which resulted in traffic growth in the Middle East, Asia, Far East and Africa regions.

Mahmud Janmohamed, Managing Director and CEO

www.serenahotels.com/default-en.html

A MULTINATIONAL GREAT LAKES REGION INVESTOR PROFILE: SERENA HOTELS

The Serena Hotels Group is one of 96 companies that makes up the Aga Khan Fund for Economic Development (AKFED), the for-profit arm of the Aga Khan Development Network (AKDN). The Group trades under the name Tourism Promotion Services (TPS Serena). The company is listed on the Nairobi Stock Exchange (NSE), where it trades under the symbol TPS.

The group has, since November 2011, 25 properties in Africa. In the Great Lakes Region, Serena Hotels has operations in Kenya, Uganda, Rwanda and Tanzania. The Group also maintains 10 properties in the Asian continent.

The five-star Nairobi Serena Hotel is the flagship hotel of the group. It features 183 rooms and 7 suites, including 1 state suite. Nairobi Serena Hotel, which was listed in 2014 World’s Best Awards; is one of the top Hotels in Africa and the Middle East, rated 13/15 with a score of 81.11%.

and renewable energy (solar panels for lighting, solar thermal water heating systems for hot water provision) to leisure facilities to save owners money and protect the environment. Given the prevalence of lakes in the PSCF GLR, there are also opportunities for river boat/ dinner boat projects, river cruises and also the development of “by-the-lake” music events.

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Project Name:

Lake View Resort City in Kisumu, Kenya

Project Country (ies):

Kenya

Project Sector:

Tourism

Project Source/Sponsor/Funder(s):

Kenya Railways Corporation

Short Description of the Project:

Kenya Railways Corporation, as part of its mandate to develop its assets, has developed a strategy to create exciting and innovative property developments. One of the key developments is the Lake View Resort City. The proposed Lake View Resort City will be located on the Kenya Railways land measuring 20 acres in Kisumu City on the shores of Lake Victoria. It will be situated between Jomo Kenyatta Highway, Bank Street, the railway station and the State Lodge.

The project will involve the development of the following facilities:1. Five star hotel – 400 rooms2. Two three star hotels – 300 rooms each3. Conference facilities for over 2000 people4. Office park – 10 commercial buildings5. Car park – 2000 cars6. Entertainment and recreation areas7. Shopping Mall8. Business Process Outsourcing (BPO) Park

Investment Opportunity:

Construction, leisure facilities services and management, tourism services

Stage of Project:

Studies developed, looking for joint venture partner(s)

Type of Project:

Resort development

Duration of Project:

Estimate 48 months

Cost of Project:

US$130 million

Funding Available:

KRC seeking joint venture partner(s) – capitalization TBD

Funding Gap:

TBD

For More Information:

Kenya Railways CorporationWorkshop Road, Off Haile Selassie Avenue, opposite Kenya PolytechnicPO Box 30121 – 00100 NairobiTel: +254 20 222 1211Email: [email protected] http://www.matchdeck.com/article/352-government-agency-seeks-credible-property-developers#/index

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Notwithstanding the significant opportunities in the Great Lakes Region, there remain some important risks to safeguard against if an investor is to be successful. Political risk is the key regional investment risk that foreign direct investors in the region would be cautioned to try and mitigate.

a) Investment Start-up Challenges

There are a few business environment challenges in the region that can frustrate successful investment.

These include:• Acquiringland• Obtainingbusinessandworkpermits• Obtainingbuildingandplantconstructionpermits• Sourcingandimportingequipment• Findingappropriateandskilledstaff• Securinginputs,eitherlocallysourcedorimported• Obtainingcommercialfinanceatacost-competitiveprice

Selected ways to address these challenges include:

1. Acquiring Land – Work with the National Investment Promotion Agency to identify and secure land. Being prepared to enter into a long term lease is helpful as often it is prohibited for foreigners to own land outright. Patience is an important component of negotiating land contracts. Lastly, having a local partner is also useful when seeking to acquire or lease land as they may help the entire transaction qualify for local treatment in terms of land ownership regulations.

2. Obtaining Business and Work Permits – Again the national Investment Promotion Agency can be helpful. Local law firms can also assist here and in some countries there are also specialist firms that help investors navigate the application process for business and work permits. Having a local partner can also help in this regard as the partner may have had previous experience in understanding the local bureaucracy.

3. Obtaining Building and Building Construction Permits – Local partners are invaluable in this arena as they typically will have experience in this area and also know reputable contractors to work with.

4. Sourcing and Importing Equipment – Identifying a reputable freight forwarder and customs house broker can help an investor negotiate the process of getting equipment into the country cost-effectively and in compliance with good governance business practices. Engaging with the national business chamber leadership is a way to assess what sourcing resources exist in the market.

Chapter 4.

Investment Risk and Risk Mitigation Safeguards

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5. Finding Appropriate and Skilled Staff – Again local business chambers and also industry and trade bodies can be useful sources of information about how best to find the human resources desired. Local universities, and training and educational institutions are also a potential resource to identify trained youth for new positions. The development community is an additional resource for identifying more senior professionals who may have worked on development/ industry projects funded by development partners. Always request and check references.

6. Securing Inputs, either locally sourced or imported – Industry bodies are most useful in this instance as are government ministries, as they will help advise on what inputs are in the market and what foreign suppliers exist as well.

7. Obtaining Commercial Finance at a Cost Competitive Price – Access to finance can indeed be a challenge in the region. The local business chamber can often assist with helping identify financiers familiar with the type of transaction being pursed. These financiers may better understand the risks of the project and be better able to provide competitive pricing because of this understanding. Development finance institutions active in the country are another potential source of direct capital or useful to indicate institutions that they may have funded who have pools of less expense funding (i.e. SME finance, trade finance, or sector focused finance).

b) Running Business Challenges

For investment in going concerns or projects already underway, there are other challenges to be considered:• Transportationcosts• Availabilityandreliabilityofutilitiesandservices• Workforcemanagementandskillsturnoverduetopoor

health

1. Transportation Costs – Transportation to get product to market can be difficult in many countries in the region. Container transport is the most prevalent way that goods are moved but road access and rail access can be difficult to various corners of the region. Sourcing a seasoned logistics consultant referred by the national investment agency and/or the national business chamber is a cost effective way to analyze the market in regard to transportation issues.

2. Availability and reliability of utilities and services – Power is a major challenge in the region and telephony signals can also be faint in rural areas. Renewable energy and distributed power sources can help address this challenge although it will add an additional cost to the project. In some cases where there are no cost effective alternatives to existing utilities, it is prudent to build into

financial models the likelihood of the impact on work productivity of periods where outages occur.

3. Workforce management and skills turnover due to poor health – Offering a health plan and establishing a relationship with a local hospital, insurance provider, incentivizing healthy living , and posting health messages in the work place are all ways to work to maintain a healthy staff. Workforce management is best handled through the employment of senior HR staff who understand the business environment and, where possible, the engagement of local partners who also understand the labor environment.

Beyond these prospective challenges, political risk is also something that can upend commercially sound investment projects. In this regard, political risk is the risk of losing money due to changes that occur in a country’s government or regulatory environment. Acts of war, terrorism, and military coups are all extreme examples of political risk. Expropriation of assets by the government – or merely the threat – can also have a devastating effect on investment value and/or share prices.

The political risks are most often subject to the location of the specific project (s) and as such are primarily country specific. The largest of the political risks that need to be safeguarded against are conflict risks relating to the on and off combatant flare-ups. Taking out political risk insurance from institutions such as the World Bank’s Multilateral Investment Guarantee Agency is the best way to mitigate against political risk.

Less impactful on physical investments, but also a cause for strategic planning are changes in government administrations that occur as a result of elections. In the near term political horizon in the Great Lakes Region between 2015 and 2017, twelve of the thirteen countries are scheduled to have presidential elections. Policy summersaults, administrative paralysis, and also potential changes in ministerial leadership and personnel that can lead to new priorities and/or preferred business partners for government, are but some of the issues that must be negotiated during election periods in the region.

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Chart 20. Upcoming Great Lakes Region Presidential Elections

Countries Next Presidential Elections

Term (in years)

South Sudan 2015 4Burundi 2015 5

CAR 2015 5

Sudan 2015 5

Tanzania 2015 5

Congo 2016 7

DRC 2016 5

Uganda 2016 5

Zambia 2016 5

Angola 2017 5

Kenya 2017/18 5

Rwanda 2017 7

South Africa 2019 8

Source: author’s compilation

Multi-stakeholder project development is an important way to address the potentially destabilizing aspects of political change in a target country. Having relationships within civil society, the private sector, industry bodies and within multiple ministries can be useful to guard against losing a public sector champion and finding that no one else is aware of the positive merits of a particular project and as such it struggles to find backing.

More generally, from a risk mitigation standpoint and in understanding local business practices and the local business environment standpoint, engaging local legal counsel, accounting firms and business development consultants can help investors reduce their risk and navigate the environment more efficiently.

As there is increasingly more focus on the promotion of “responsible” business in the region, understanding what practices undergird “responsible business” is also useful. The United Nations Global Compact “Business for Peace”25 has also developed a community of practice for companies operating in regions with conflict and/or high risk to develop and disseminate best practice for success and good corporate citizenship.

Relatedly, the United Nations Global Compact has developed a publication entitled “Guidance on Responsible Business in Conflict-Affected and High Risk Areas: A Resource for Companies and Investors”.26

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While a number of bilateral development partners work in some (but not all) of the target GLR states and the target sectors, there is a group of stakeholders who are focused on the region in aggregate who can serve as useful resource institutions for investors – and national governments – seeking to find investment partners and/or investment opportunities, sectorally, and regionally. These include:

Policy

African Union AU Peace and Security DepartmentP.O. Box 3243Addis Ababa, EthiopiaTel: +251 115 515143/ 516329 Fax: +251 115 519321/ 514227 Email: [email protected]: www.peaceau.org

EU-UN Great Lakes Regional Project CoordinatorTel (DRC): +243 99 22 77 922Tel (Burundi): +257 71 75 14 96Tel (Rwanda): +250 789 428 105Tel (Uganda): +256 785 287 463Email: [email protected] EU-UN Program Partnership on Land, Natural Resources and Conflict PreventionUN Interagency Framework Team for Preventive Action 1 UN Plaza New York, NY Tel: + 1 212 906 5637Email: [email protected]: www.un.org European UnionDirectorate General for Development and Cooperation – EuropeAidEuropean CommissionOffice L-41 04/064B-1049 BrusselsRue de la Loi/ Wetstraat41, B-1040 Bruxelles/ BrusselsTel: +32 02 299 11 11 Web: ec.europa.eu/europeaid/who/index_en.htm

ICGLRExecutive Secretariat of the International Conference on the Great Lakes Region (ICGLR)P.O. Box 7076Avenue du GouvernementBRB Building, Second floorBujumbura-BURUNDITel: +257 22 25 68 24/5/7/9Fax: +257 22 25 6828Email: [email protected]: www.icglr.org

UN Special EnvoyOffice of the Special Envoy of the Secretary-General for the Great Lakes RegionR-3 UNON CompoundUnited Nations, GigiriPO Box 48246 (00100)Nairobi, KenyaTel: +254 41 350 6310Web: www.un.org/wcm/content/site/undpa/main/activities_by_region/africa/pid/24261

Infrastructure Development and Finance

African Development BankDepartment of Fragile States15 Avenue du GhanaP.O. Box 323-1002Tunis-Belvedère, TunisiaTel: +216 71 10 39 00Tel: +216 71 35 19 33 Email: [email protected]: www.afdb.org

European Investment BankSub-Saharan Africa, Caribbean and PacificEast and Central Africa & Pacific Region98-100 Boulevard Konrad AdenauerL-2950 LuxembourgTel: +352 43 79 82974Fax: +352 43 79 64899Email: [email protected]: www.eib.org

International Finance CorporationInvestment Climate, World Bank GroupDelta CenterMenengai Road, Upper Hill P.O Box 30577-00100, Nairobi, KenyaTel: +254 20 293 7000/7200Fax: +254 20 293 7210Web: www.wbginvestmentclimate.org

World Bank Great Lakes InitiativeAfrica Regional Integration Program, AFCRIMailstop J11-1102 The World Bank 1818 H St NW Washington, D.C. 20433 USATel: +1 202 458 9197 Fax: +1 202 522 1580 Email: [email protected]: www.worldbank.org

Regional Integration Projects

East African Community EAC SecretariatClose Off Afrika Mashariki RoadP.O. Box 1096, Arusha, TanzaniaTel: +255 27 216 2100Fax: +255 27 216 2190Web: www.eac.int

Economic Community of Central African StatesECCAS SecretariatBP: 2112 Libreville GabonTel: 00 241 44 47 31Fax: 00 241 44 47 32Web: www.ceeac-eccas.org

Economic Community of The Great Lakes Countries ECGLC/CEPGL SecretariatBP 58 Gisenyi/ BukavuRépublique du RwandaTel: +250 280 30 30 40/50/60Web: www.cepgl.org

Appendix 1

Investment Support Resources

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Intergovernmental Authority on Development IGAD SecretariatAvenue Georges ClemenceauP.O. Box 2653 DjiboutiRepublic of DjiboutiEmail: [email protected]: +253 21354050Fax: +253 21356994Web: igad.int Southern African Development CommunitySADC SecretariatOffice of the PresidentPrivate Bag 001, GaboroneTel: + 267 3133044Fax: + 267 3904017Web: www.sadc.int The Common Market for Eastern and Southern AfricaCOMESA SecretariatBen Bella Road, Lusaka, Zambia.Tel: +260 211 229 725/35Fax: +260 211 225 107Web: www.comesa.int

Private Sector Collaboration/ Partnership

Association of SADC Chambers of Commerce and Industry ASCCI SecretariatBOCCIM House, Old Lobatse RoadPlot 5196P.O. Box 432, Gaborone, Botswana Tel: + 267 3953459 Fax: + 267 3973142Web: www.ascci.info/

CEPGL Business CouncilECGLC/CEPGL SecretariatBP 58 Gisenyi/ BukavuRépublique du RwandaTel: +250 280 30 30 40 +250 280 30 30 50 +250 280 30 30 60Web: www.cepgl.org/

COMESA Business CouncilCOMESA SecretariatBen Bella RoadPO Box 30051, Lusaka, ZambiaTel: +260 211 229 725 – [email protected]

East African Business CouncilEABC SecretariatOloirien House KijengeAlong Perfect Printers StreetPO Box 2617, Arusha, TanzaniaTel: 255 27 254 3047Fax: 255 27 250 9997Email: [email protected]: www.eabc.info

ICGLR Business Council(In Process of Being Established)Executive Secretariat of the International Conference on the Great Lakes Region (ICGLR)P.O. Box 7076Avenue du GouvernementBRB Building, Second floorBujumbura, BurundiTel: +257 22 25 68 24/5/7/9Fax: +257 22 25 6828Email: [email protected]: www.icglr.org

Pan African Chamber of Commerce and IndustryPACCI SecretariatAround Meskel Square, on the way to Debrezeit Road PO Box 3155, Addis Ababa, EthiopiaTel: +251 116 622640 Fax: +251 116 622642Email: [email protected]: www.pacci.org

UN Global Compact UN Nations Global Compact OfficeDC2-618New York, NY 10017, USATel: + 1 212 963 1490Fax: +1 212 963 1207Email: [email protected] Web: www.unglobalcompact.org

See also: Business For Peacewww.business4peace.orgEmail: [email protected]

Equity, Project, Inclusive Business and Micro-Finance

African Development Bank Trust Funds and FacilitiesSee AfDB Initiatives & Partnerships – www.afdb.org/en/topics-and-sectors/initiatives-partnerships

The African Private Equity and Venture Capital AssociationAVCA SecretariatThe Banking Hall, Cropthorne Court, 26 Maida Vale, London, W9 1RS, United KingdomTel: +44 (0) 203 632 0408 Email: [email protected]: www.avca-africa.org UNDP African Women and Youth Finance Digital Directory See: NEPAD African Platform for Development Effectiveness – www.africa-platform.org

UNDP Inclusive Business Finance Field GuideSee: UNDP African Facility for Inclusive Markets (Under “Knowledge Products”) www.undp.org/africa/privatesector

Agriculture Sector

Comprehensive African Agriculture Development Program CAADP HeadquartersNEPAD Planning and Coordination AgencyInternational Business GatewayBlock B, Gateway ParkCnr Challenger & Columbia Avenues, Midridge Office Park,Newroad, Midrand, 1685South Africa Tel: +27 (0) 11 256 3600Email: [email protected]: www.nepad.org

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Pan African Farmers Union PAFU SecretariatOuagadougou, Burkina FasoBP: 09 BP 884 Ouagadougou 09TEL: +226 66894821 FAX: +226 50 36 26 13Email: [email protected] Web: www.pafo-africa.orgSee also Community of Practice Site – pafo-africa.net/

Rural Economy and Agriculture Department, African Union CommissionCAADP Pillar IIAfrican UnionP.O. Box 3243, Addis Ababa, EthiopiaTel: +251 11 551 7700/ 552 6373Email: [email protected]: www.africa-union.org

Energy Sector

African Forum for Utility RegulatorsAFUR SecretariatKulawula House526 Vermeulen StreetArcadia, Pretoria 0083South AfricaTel: +27 12 401 4720/ 40Fax: +27 86 725 3714Email: [email protected]: www.afurnet.org

East African Power PoolEAPP Secretariat House No. 513 Kirkos Sub-City, P. O. Box 100644Addis Ababa, Ethiopia Tel: +251 115 572 399 Fax: +251 115 572 419Email: [email protected]: www.eappool.org

Energy and Infrastructure Department, African UnionAfrican UnionP.O. Box 3243Addis Ababa, EthiopiaTel: +251 115 18 24 06Fax: +251 115 18 24 50Email: [email protected]: www.ie.au.int

Southern African Power PoolSAPP Co-ordination Center 24 Golden Stairs Emerald Hill Harare, Zimbabwe Tel: +263 4335558 +263 335 468/517/548 Fax: +263 4 307023Email: [email protected]: www.sapp.co.za

Sustainable Energy for All – AfricaSE4ALL Africa HubAfrican Development Bank15 Avenue du GhanaP.O. Box 323-1002Tunis-Belvedère, TunisiaTel: +216 71 10 39 00Tel: +216 71 35 19 33 Email: [email protected]: www.afdb.org

See also: www.se4all.org/wp-content/uploads/2013/10/SE4ALL-africa-hub-leaflet-web_Feb-2014.pdf

United Nations Environmental ProgramUNEP OfficeUnited Nations Avenue, GigiriPO Box 30552, 00100Nairobi, KenyaTel: +254 20 7621234Email: [email protected]: www.unep.org

Finance Sector

African Export-Import BankAFREXIMBank Headquarters72 B El-Maahad El-Eshteraky Street(Opposite Merryland Park)PO Box 613Heliopolis, Cairo 11341, EgyptTel: +202 24564100/1/2/3Fax: +202 245 15090Email: [email protected]: www.afreximbank.com

African Rural and Agricultural Credit AssociationAFRACA SecretariatKenya School of Monetary Studies (KSMS)Off Thika Super Highway, Nooridin Road, Next to De la Rue Security Print,P O Box 41378, 00100Nairobi, KenyaTel: +254 20 2717911/2715991; Mobile: +254 726 080 454 Fax: +254 20 2710082Email: [email protected]: www.afraca.org

Association of African Central BankersAACB Secretariatc/o Banque Centrale des Etats de l’Afrique de l”Ouest (BCEAO) Avenue Abdoulaye FadigaBP 3108 – Dakar, SenegalTel: +221 33 839 05 00 Fax: 221 33 823 83 35Web: www.aacb.org/en/contact Development Bank of Central African StatesDevelopment Bank of Central African StatesBoulevard Dénis Sassou NguessoB.P. 1177, Brazzaville – Congo Tel: +242 22 281 18 85Web: www.bdeac.org

Development Bank of Southern AfricaDBSA Headquarters1258 Lever Road, Headway Hill, MidrandPO Box 1234 Halfway House, Midrand 1685Johannesburg, South AfricaTel: +27 11 313 3911 Fax: +27 11 313 3086Email: [email protected]: www.dbsa.org

East African Development Bank East African Development Bank EADB Building, 4 Nile Avenue P.O. Box 7128 Kampala, UgandaTel: +256 41 711 2900Email: [email protected] Web: www.eadb.org

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Eastern and Southern African Trade and Development BankPTA Bank: Kenya OfficeBishops RdNSSF Complex197 Lenana Place, Lenana Road1st floor and top floorP.O Box 48596- 00100, Nairobi, KenyaTel: +254 732 192 000 Fax: +254 (20) 2711510Web: www.ptabank.org

Making Finance Work for Africa MFW4A SecretariatAfrican Development Bank15 Avenue du GhanaP.O. Box 323-1002Tunis-Belvedère, TunisiaTel: +216 71 10 27 00Tel: +216 71 33 44 84 Email: [email protected] Web: www.afdb.org or www.mfw4a.org

ICT

African Telecommunications UnionATU HeadquartersCCK BuildingWaiyaki Way PO Box 35282- 00200Nairobi, Kenya Tel: +254 20 2322120/1 Fax: +254 20 2322124 Web: www.atu-uat.org

Infrastructure Sector

Commonwealth Business CouncilAfrican Infrastructure Investment Report 2013 – See www.cbcglobal.org/images/uploads/docs/The_CBC_Africa_Infrastructure_Investment_Report_2013.pdf

Energy and Infrastructure Department, African UnionAfrican UnionP.O. Box 3243Addis Ababa, EthiopiaTel: +251 115 18 24 06Fax: +251 115 18 24 50Email: [email protected]: www.ie.au.int

International Federation of Consulting Engineers – Group of African Member AssociationsGAMA, FIDIC SecretariatWorld Trade Center II Geneva Airport Box 311 29 route de Prés-Bois CH-1215 Geneva 15, Switzerland Tel: +41 22 799 49 00Fax: +41 22 799 49 01 Email: [email protected]: fidic.org/node/827

See also: www.gama2014.com

Private Infrastructure Development GroupPIDG c/o Program Management Unit, MDY Legal,St. Nicholas House, St. Nicholas Rd, Sutton, Surrey, SM1 1EL, United KingdomTel: +44 (0)20 8643 9794 Email: [email protected] Web: www.pidg.org

Mining Sector

African Minerals Development CentreAMDC SecretariatUN Economic Commission for AfricaMenelik II Ave.P.O. Box 3001, Addis Ababa, EthiopiaTel: +251 11 551 7200Fax: +251 11 551 4416 Web: www.uneca.org/amdc

African Natural Resources CentreANRC OfficeAfrican Development Bank15 Avenue du GhanaP.O. Box 323-1002Tunis-Belvedère, TunisiaTel: +216 71 10 39 00Tel: +216 71 35 19 33 Email: [email protected]: www.afdb.org

See also: www.afdb.org/en/topics-and-sectors/initiatives-partnerships/african-natural-resources-center-anrc

Tourism

East African Community TourismSee East Africa Borderless Visa – www.visiteastafrica.org/visa/

Regional Tourism Office of Southern AfricaRETOSA HeadquartersWaterfall Park - RetosaUnit C39, Lone CreekWaterfall Park, MidrandTel: +27 11 315 2420/1 or +27 11 315 9752/3Web: www.retosa.co.za UN Economic Commission for Africa, Inter-governmental Authority on Development Tourism Master Plan(2013) – www.uneca.org/sites/default/files/publications/uneca_stmp.pdf

United Nations World Tourism Organization Program for AfricaWTO Africa ProgramCapitán Haya 4228020 Madrid, SpainTel.: +34 91 567 81 00 Fax: +34 91 571 37 33Email: [email protected] Web: www.africa.unwto.org

National Investment Promotion Agencies

Angola National Agency for Private Investment (ANIP) www.investangola.com

BurundiBurundi Investment Promotion Authority www.investburundi.com

Democratic Republic of Congo (DRC)Agence Nationale pour la Promotion des Investissements (ANAPI)www.anapi.org

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Kenya Kenya Investment Authority (KIA) www.investmentkenya.com or www.ipckenya.org

Republic of CongoCongo Investment Promotion Agency www.cabemary.org

RwandaRwanda Development Board (RDB) www.rdb.org

South AfricaTrade and Investment South Africa (TISA) www.thedti.gov.za

South SudanSouth Sudan Investment Authority (SSIA) www.investsouthsudan.org

SudanSudanese Investment Authority www.sudaninvest.org

TanzaniaTanzania Investment Centre (TIC) www.tic.co.tz

UgandaUganda Investment Authority (UIA) www.ugandainvest.com

ZambiaZambia Investment Centre www.zic.org.zm

African Legal Networks ALN (formerly African Legal Network) www.AfricaLegalNetwork.com

International Bar Association Africa Regional Forum www.ibanet.org/Regional_Fora/Regional_Fora/African_Reg_Forum/Default.aspx

LEX Africawww.lexafrica.com

Miranda Alliance www.mirandalawfirm.com/alliance.php?id=29

Accountancy Practices

KPMG www.kpmg.com/africa/en/kpmg-in-africa/pages/default.aspx

PricewatershouseCoopers www.pwc.co.za/en/african-footprint/index.jhtml

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Selected Publications

1. African Economic Outlook 2013

2. African Economic Outlook 2012

3. African Economic Outlook countries

4. CIA World Fact Book 2014

5. KPMG Africa Banking Survey 2012

6. KPMG Africa Reports

7. KPMG Angolan Banking Survey 2012

8. EY Africa Investment Attractiveness Survey 2012 and 2013

9. UNCTAD World Investment Report 2014

10. Harnessing Oil for Peace Development in Africa/Uganda – (Investing in Peace – International Alert September 2009)

11. World Bank: World Bank Guarantee Program for the Consultation of “Modernizing the World Bank’s Operational Policy on Guarantees” – January 2012

12. World Bank: Facilitating Cross-Border Trade between the DRC and Neighbors in the Great Lakes Region of Africa: Improving Conditions for Poor Traders – January 2011

13. GEF Impact Evaluation: Reducing Biodiversity Loss at Cross-Border Sites in East Africa Project – September 2007

14. Competitiveness and Investment Climate Strategy (CICS): Progress Report on the Implementation of the Doing Report I Uganda/Reform Memo – 2009

15. ICGLR: The ICGLR RINR and other Certification Mechanisms in the Great Lakes Region (Special Report)

16. JICA: The Research on the Cross-Border Transport Infrastructure: Phase 3

17. UNDP: Millennium Development Goals: Drivers on MDG Progress in Uganda and Implications for the Post – 2015 Development Agenda (Progress Report) – September 2013

References

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Selected Digital Documents

1. IFP Regional Cooperation on Environment, Economy and Natural Resources Cluster http://www.initiativeforpeacebuilding.eu/pdf/Regional_Cooperation_in_the_Great_Lakes_region.pdf

2. Regional Cooperation in the Great Lakes – http://www.initiativeforpeacebuilding.eu/pdf/Regional_Cooperation_in_the_Great_Lakes_region.pdf

3. UNECA/AU: Status of Integration in Africa (SIA IV) 2013 http://ea.au.int/en/sites/default/files/SIA%202013(latest)_En.pdf

4. UNECA / AU: Toward Sustainable Tourism Industry in Africa: UNECA SRO-EA Tourism Study – 2011 http://www.uneca.org/sites/default/files/publications/uneca-sro-ea-tourism-study-report-2011.pdf

5. DMA Angola Report: Investing in Angola – 2012 http://www.developingmarkets.com/sites/default/files/digital-reports/dma-angola-report-2012/files/assets/basic-html/page24.html

6. PwC: Africa Oil and Gas Review 2013 http://www.pwc.co.za/en_ZA/za/assets/pdf/africa-oil-and-gas-review-2013.pdf

7. Kenya National Tourism Strategy: 2013 – 2018 http://www.tourism.go.ke/ministry.nsf/doc/national%20tourism%20srategy%202013_2018.pdf/$file/national%20tourism%20srategy%202013_2018.pdf

8. SADC_MAPP_Programme_Document-_April_08.pdf – April 2008 http://www.sadc.int/documents-publications/show/SADC%20Multi-country%20Agricultural%20Productivity%20Programme%20%28MAPP%29%20Document

9. Espirito Santo Research – Research Sectoral http://www.bes.pt/SiteBES/cms.aspx?plg=8c927089-acf8-40ff-b2db-de582abe56b1

10. UN Economic Council: Report on Africa’s Regional Integration Agenda – February 2013 http://www.uneca.org/sites/default/files/page_attachments/report-on-africa-regional-integration-agenda.pdf

11. Policy Monitoring and Research Centre (PMRC) – The State of the Energy Sector in Zambia – Oct 2013 http://pmrcblog.files.wordpress.com/2013/10/the-state-of-the-energy-sector-in-zambia.pdf

12. Zambia Development Agency: Energy Sector Profile – June 2013 http://www.zda.org.zm/sites/default/files/Zambia%20Energy%20Sector%20Profile%20-%20June%202013.pdf

13. USAID: Audit of USAID / Sudan’s Modern Energy Services Program http://oig.usaid.gov/sites/default/files/audit-reports/4-650-11-003-p.pdf

14. Rwanda Development Board: The Opportunity in Rwanda / Energy – 2012 http://rdb.rw/investinrwandaenergy/energy/Energy_Brochure_2012_final.pdf

15. African Development Bank (AfDB): Country Development Paper/ DRC – June 2013 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Democratic%20Republic%20of%20Congo%20-%202013-2017%20-%20Country%20Strategy%20Paper.pdf

16. Africa Infrastructure Country Diagnostic: East Africa’s Infrastructure: A Regional Perspective http://www.infrastructureafrica.org/system/files/library/2012/02/REC%20East%20Africa.pdf

17. Africa Investor (article) Al Abbas Transport Expands Network to Sudan – January 2014 http://www.africainvestor.com/article.asp?id=12635

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1 See for more information on the PSCF http://www.un.org/wcm/content/site/undpa/main/activities_by_region/africa/pid/24261

2 See http://www.comesa-eac-sadc-tripartite.org/intervention/focal_areas/tripartite_fta

3 Economic Report on Africa 2009, pp. 117-134

4 See www.nepad.org

5 http://www.africainvestor.com/article.asp?id=12885

6 Hennie van der Merwe, CEO of the Agribusiness Development Corporation (ADC), based in South Africa http://www.africainvestor.com/article.asp?id=12661

7 http://www.pwc.co.za/en_ZA/za/assets/pdf/agribusinesses-benchmarking-survey-2014.pdf

8 http://www.africainvestor.com/article.asp?id=12844

9 http://www.africainvestor.com/article.asp?id=12756

10 http://www.feronia.com/Investors/Investment-Highlights/default.aspx

11 Author’s reference

12 http://www.agriculture.eac.int/

13 http://www.usaid.gov/powerafrica/partners/private-sector

14 https://www.devex.com/news/eu-let-s-turn-on-the-light-to-help-africa-prosper-83254

15 http://www.tradeinvestkenya.com/

16 http://www.bdlive.co.za/africa/africanbusiness/2014/01/03/kenya-seeks-investors-for-300mw-geothermal-power-project

17 http://www.africainvestor.com/article.asp?id=12918

18 http://www.rdb.rw/rdb/infrastructure.html - accessed 9 August 2014

19 http://www.deputypresident.go.ke/index.php/lapset-projects

20 CBC Africa Infrastructure Investment Report

21 http://www.debeersgroup.com/Operations/Sales/About-Benefication/

22 http://www.africainvestor.com/article.asp?id=12821

23 http://www.randgoldresources.com/randgold/content/en/randgold-news?oid=189720&sn=Detail&pid=27353

24 http://www.africainvestor.com/article.asp?id=12752 accessed 10 August 2014

25 See http://www.unglobalcompact.org/issues/conflict_prevention/meetings_and_workshops/privateSector.html

26 http://www.unglobalcompact.org/docs/issues_doc/Peace_and_Business/Guidance_RB.pdf

Footnotes

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