East African railway plan faces familiar impediments

Subject East African rail infrastructure plans. Significance Tanzania, Burundi and the Democratic Republic of the Congo (DRC) in December agreed to build a 6.5-billion-dollar standard-gauge railway (SGR) line connecting the three countries through Tanzania’s ‘Central Corridor’. The agreement aims to expand the scope of a massive planned rail network spanning much of East Africa. However, this project, already over a decade in the making, has faced repeated setbacks, especially in Kenya’s ‘Northern Corridor’. Impacts As infrastructure spending slows amid tightening finance conditions, East Africa will struggle to sustain its current fast growth. Although Tanzania’s debt is currently manageable, it is growing rapidly; new SGR borrowing would put further pressure on the debt ceiling. Construction of a major new Mombasa-Nairobi highway will further reduce incentives to use Kenya’s railways for freight.

Subject Prospects for East Africa and the Great Lakes in 2018. Significance Questions of democratic legitimacy and transition will dominate the outlook for East Africa and the Great Lakes over the coming year, in the context of election controversies (Democratic Republic of the Congo (DRC), Kenya), constitutional term-limit issues (Burundi, DRC, Rwanda, Uganda) and deepening political conflicts (Ethiopia, Somalia, South Sudan). Receding economic headwinds will support a moderate growth recovery for several states (Ethiopia, Rwanda, Uganda), but political risk will weigh on the outlook for others (Burundi, DRC, Kenya, South Sudan).


Subject Rwanda-Burundi tensions. Significance Following months of angry exchanges, in late January, Rwanda issued a series of arrest warrants against individuals allegedly involved in armed opposition groups based in eastern Democratic Republic of the Congo (DRC). It accuses Burundi of supporting those groups. Burundi in turn accuses Rwanda of supporting Burundian armed opposition groups in the DRC. Impacts The tensions will put more strain on the East African Community, which has struggled to strengthen security and political integration. The tensions will be especially detrimental to Burundi’s economy, which has been crippled by years of turmoil and isolation. Rwanda-Uganda tensions have also risen over recent years, but there are indications that Rwanda may look to de-escalate here.


Subject Rwandan foreign relations. Significance In October, France reopened investigations into the role of the Rwandan Patriotic Front, the ruling government, in shooting down President Juvenal Habyarimana’s plane in 1994, the event that triggered the genocide. Then in late November, Rwanda began investigations into French complicity in the genocide, further souring relations between the two countries. In the lead-up to next year’s presidential election in Rwanda, a renewed spotlight will fall on Kigali’s relations with international donors and other foreign actors. Impacts Rwanda will feel little external pressure to alter the domestic political and human rights environment. Instability in the Great Lakes region will pose substantial foreign relations challenges. Rwanda should prove itself adept at navigating economic and conflict-mediation divisions within the East African Community (EAC). Ties with Tanzania will be key in restoring relations with South Africa and managing rebels in the Democratic Republic of the Congo (DRC).


Subject East Africa road construction. Significance In late November, the last mile of pavement linking Kenya and Ethiopia’s national highways was completed at the border post of Moyale. With the completion of this final stretch, metalled roads now link all major East African cities. In recent years, governments across the region have placed an emphasis on road-building projects as a tool for achieving economic growth, improving national and regional integration, and gaining political advantage. Impacts Successful road schemes can bolster the political support of regional leaders. Chinese involvement in vital road construction provides Beijing with leverage over East African governments. The African Development Bank has championed a continent-wide highway; East Africa is leading the way with regional developments. Constructing new roads brings political benefits, but maintenance of existing roads may receive lower priority.


Subject African politics and security to end-2017. Significance Key regional leaders are set to step down from national and party presidencies in Angola and South Africa, presidents in Nigeria and Zimbabwe are in ill health, while growing displacement crises in the Central African Republic (CAR) and the Democratic Republic of the Congo (DRC) could worsen without increased international funding and support. Although famine risks have lessened in South Sudan, conflict and instability will persist in Nigeria and Somalia as renewed insurgency threats grow.


Subject Uganda-Rwanda bilateral relations. Significance Rwanda and Uganda have held a series of meetings aimed at defusing tensions following a string of controversial deportations of Rwandans from Uganda. The highest profile saw Rwandan President Paul Kagame meet Ugandan President Yoweri Museveni on the sidelines of the African Union Summit on January 28. Following the discussion, exchanges of hostile rhetoric have eased. However, relations remain fragile, and the recent friction has inflamed deep-seated antagonisms. Impacts Regional crises in Burundi and the Democratic Republic of the Congo (DRC) could become a further point of contention. Uganda-Rwanda frictions may hamper consensus-building in the already-divided East African Community. A spike in tensions could impact cross-border trade and tourism.


Subject East Africa energy cooperation. Significance As East African governments look to further ambitious national development plans, the single greatest barrier they face to achieving their goals is a lack of sufficient energy. To close this gap, major new investments are being made in energy production and transmission infrastructures, including cross-border cooperative projects. Impacts New projects will expand energy availability but are unlikely to keep pace with growing needs. Efforts to reach energy self-sufficiency will help to mitigate future shocks in external energy markets. Regional energy cooperation has the potential to stimulate wider regional social and political cooperation.


Subject Rwanda's governance model. Significance The ruling Rwandan Patriotic Front (RPF) celebrated its 30th anniversary in late 2017 with a series of major public events. Taken together, they provide a lens onto President Paul Kagame and the RPF’s rule -- and the very nature of power in Rwanda today. In particular, they demonstrate the extent to which the national political space now revolves around the figure of Kagame himself. Impacts Despite impressive development gains, Rwanda’s goal of becoming a middle-income country by 2020 remains ambitious. The Rwanda National Congress, which includes many former senior RPF figures, is the main opposition threat, but faces internal divisions. Regional insecurity in Burundi and the Democratic Republic of the Congo could be destabilising if it spills across borders.


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