Clyde & Co has the largest presence of any international law firm in East Africa. From our hub in Dar es Salaam, Tanzania, we act as international counsel on transactions across the East African region. Our team has the ability to advise across the full spectrum of corporate transactions, including cross border M&A and private equity investments and exits.
Key recent developments in East Africa:
Ethiopia signs USD 600M loan and grant deal with World Bank
The World Bank has agreed to loan and grant USD 600 million to Ethiopia to pay for roads and other infrastructure in urban areas.
The Washington-based bank said the funds would "help strengthen the capacity and performance of local urban governments, expand sustainable urban infrastructure and services, as well as promote local economic development."
Earlier this month, the World Bank also approved a USD 375 million loan to Ethiopia to fund a national electrification project.
New study estimates 10,000 MW geothermal potential in Ethiopia
The Ethiopian Government announced the results of 18 months of research and exploration by the Ethiopian Geological Survey with partners.
23 areas have been identified with geothermal energy development potential in the Ethiopian Rift Valley Zone which correspond to a combined geothermal power generation capacity potential of over 10,000 MW.
Development of geothermal projects is already under way in Aluto Langano, which is described to have a capacity potential of 80 MW. Two new wells have been drilled to a depth of 1,952 and 1,921 meters.
There are also preparations under way for a 100 MW project in Lalo Meda Tendaho of Afar state. Drilling could start in the next two months.
The government have confirmed that they would welcome private investors to invest into geothermal development in Ethiopia.
Two licenses have already been granted for geothermal development in two of the 23 areas identified in the study.
Priorities and main focus are given to development in areas with multi-infrastructure access with high energy potential.
The Rift Valley has still more geothermal energy potential and research continues on other areas in the Rift area.
Ethiopia to develop nuclear power
Ethiopia recently signed an agreement with Russia to set up nuclear technology to help generate power.
Currently, the agreement includes a plan to redevelop the former Soviet-built nuclear research centre in Ethiopia and once completed, the nuclear power station will generate energy for medical and various other facilities.
TTCL to Inject USD 20 million in 'Home' Internet Rollout
TTCL Corporation plans to invest around USD 20 million in its project to rollout its internet service across all major cities in the country, the company has said.
The corporation is currently rolling out its 'Fiber Connect Bundle' to clients' houses in a three-month pilot project that started earlier in February, according to the company.
The service will allow customers to access WiFi within 200 meters radius.
Rwanda And Tanzania To build Electric Railway Connecting Both Countries
Rwanda and Tanzania have agreed to construct an electric railway line between the two countries according to the transport ministers of Rwanda and Tanzania.
This new electric railway line replaces the diesel locomotive railway agreement made previously by the two countries. The new railway, over 400km long, is expected to link the cities of Isaka (Tanzania) and Kigali (Rwanda).
The design change is expected to reduce the time and cost of transporting passengers and goods between Dar es Salaam and Kigali.
Tanzania expands main airport to boost passenger capacity
A new terminal building at Dar es Salaam’s main airport will open in June 2019 as recently announced by the Tanzanian prime minister’s office.
The project will have cost more than USD 300 million and will add 24 parking bays for large aircraft as well as boost annual passenger-handling capacity from 2.5 million to 6 million.
Rwanda posts 6.1 per cent economic growth in 2017
Rwanda’s economic growth exceeded the previously projected 5.2 per cent and grew 6.1 per cent last year, a positive performance that was mostly driven by fourth quarter growth.
Figures released by the National Institute of Statistics of Rwanda yesterday indicated that in the year 2017 the country’s Gross Domestic Product (GDP) grew by USD 1 billion over the course of the year.
The main driving sectors of the economy, which are agriculture, industry, and services, posted positive growth rates in the fourth quarter, with agriculture and industry growing 10 per cent while services grew by 11 per cent.
Rwanda Innovation Fund Project to Receive USD 30 million Loan From African Development Bank
The Board of the African Development Bank Group has approved a loan of USD 30 million to support the establishment of the Rwanda Innovation Fund (RIF).
The main objective of the project is to promote innovation economy in Rwanda and the East African Community (EAC) region. The resource will be used to establish an investment vehicle focused on funding Tech-Enabled Small and Medium-Sized Enterprises (SMEs) and to develop the country's entrepreneurial/innovation ecosystem capacity.
The Fund will support and provide equity financing for SMEs, train tech-oriented entrepreneurs in business planning and management, and increase awareness and sensitization with respect to intellectual property rights in Rwanda, the East African Community and beyond. It aims to mobilize USD 100 million in direct commitments from the Rwandan Government and private investors, while targeting a leverage multiplier effect of up to USD 300 million in follow-on investments.
Rwandan agrees USD 53 million cross border trade deal
The government of Rwanda and TradeMark East Africa (TMEA) on Tuesday signed a financing agreement to help support interventions that will result in job creation, poverty reduction and increase cross border trade.
This agreement marks the commencement of TMEA's second phase of interventions which will be implemented between 2018 and 2023.
According to the agreement, TMEA has committed to work with government and private partners to support the construction of storage facilities around Rubavu and Rusizi ports of Lake Kivu and provide support to Rwanda's plan to develop its industrial parks. It has reported that the renewed agreement could result in 100,000 new jobs being created in Rwanda in the next 6 years.
Chinese-Malaysian business consortium to invest USD 70 Billion in Uganda
Uganda Investment Authority has entered a multi-billion deal with a Chinese-Malaysian firm with an aim of transforming the country into a green economy by 2040 through a series of four integrated green projects led by bio-fuels.
The USD 70 billion project will be implemented by Bionas East Africa Group Limited, a subsidiary of Bionas Agropolitan Technology Corridor (BATC) Development Berhad.
The implementation will be through a public-private partnership on a build-operate-transfer model.
BATC has already secured USD 15.4 billion of private debt investment and equity.
Uganda’s coffee exports continue to surge
Latest statistics indicate that both volume and value of Uganda’s exports at the international market increased. In terms of volume, Uganda contributed to the global coffee exports market in the month ending January a total of 401,930 (60kilogramme) bags.
According to Uganda Coffee Development Authority (UCDA), during this period, which is the fourth month on the coffee calendar, the country earned in terms of revenue USD 43.66 million up from USD 42.2 million earned the previous month.
Experts in the industry say, if this trend continues, the country’s campaign to reach the 20 million bags at least by 2025 will be achieved.
Japan to invest USD 400 Million to support big four agenda
The Japanese Ambassador to Kenya says the government of Japan plans to invest more than USD 400 million in various projects in the country such as Dongo Kundu bypass, expansion of the Port of Mombasa and various roads in Nairobi.
French Companies to Invest USD 10 Billion in Kenya
French companies plan to invest more than USD 10 billion in 12 Kenyan projects spanning the manufacturing, energy, agriculture and technology industries.
Around 60 executives from companies including Schneider Electric SE, Total SA, Urbasolar, Peugeot SA and Bollore SA visited Kenya earlier this month in search of investment opportunities.
The EIB is the world's largest international public bank and has provided investment through credit lines with Sub-Saharan Banks exceeding USD 1.8 billion over the last 5 years.
Telkom to Get USD 40 million for Network Upgrade
Telkom Kenya is set to receive a USD 40 million loan from the European Investment Bank to boost infrastructure and mobile money network.
The European Investment Bank (EIB) said the loan, which is still going through appraisal, will only form part of the funding for Telkom Kenya's USD 92 billion network expansion project.
The mobile operator further said that its five-year strategy is to invest a total of USD 150 million in its 3G and 4G networks as well as mobile financial services and customer experience.