Bernard Busuulwa
28 September 2008
Nairobi — British investors from the Birmingham Chamber of Commerce and Industry have expressed interest in housing, water and education sectors of Uganda and Kenya.
According to Jonathan Webber, head of the trade mission that was in the country recently, 12 companies engaged in these sectors were represented on the tour.
"My intention is to make Uganda, Kenya and Tanzania more marketable among the British business community," said Mr Webber.
Uganda's exports to the UK are currently valued at £30 million ($52.6 million) while its imports stand at £66.1million pounds ($115.8 million).
The investors are also keen on embracing public private partnerships (PPPs) which are considered vital for the success of their ventures.
PPPs are contractual arrangements between governments and the private sector and are intended to bridge gaps in the development of public infrastructure such as shortage of funds usually faced by the former and lack of financial guarantees by the latter.
The massive shortage of decent housing in Uganda is considered one of the biggest opportunities for exploitation by the British investors.
According to the Uganda Population Report for 2007, the country's estimated six million households are reported to be living in 4.5 million housing units, resulting in a backlog of around 6.1 million units.
However, most of the backlog is experienced in the rural areas. According to the report, 211,000 extra units are needed in the urban areas while 1.295 million extra units are required in the rural areas.
Hesco Bastion Ltd, a British firm engaged in construction of semi-permanent houses that can be set up rapidly, has expressed interest in investing in the country's undertapped housing sector.
The company has developed a unique housing model that involves construction of semi-permanent houses by unskilled people, low-cost materials like soil and sand, with an accommodation capacity of up to eight people.
The housing sector in Kenya is also equally targeted.
Uganda's water sector, with demand soon expected to exceed current supply levels, has also attracted interest among the British investors.
It is estimated that only 2,300 natural springs are protected in Uganda out of a total of 9,000, indicating a 26 per cent share for safe water coverage within the supply segment in question.
An additional 20,000 boreholes are also required in order to meet the country's rising water consumption levels.
Coverage by the main sewer network stands at only eight per cent in towns that are served by the National Water and Sewerage Corporation.
This scenario has led Biwater International Ltd, a British company specialising in water projects across Africa to invest in Uganda's water sector, particularly large scale supply projects for urban centres with backing from international lenders.
Some of the companies have also shown interest in Uganda's education sector.
With an estimated 7.5 million pupils currently attending primary school under the Universal Primary Education programme, demand for suitable science laboratory facilities is likely to increase.
On the other hand, the investors are keen on exploiting Kenya's relatively viable horticultural sector plus information and communication technology and tourism.
The UK currently tops Uganda's investor rankings, with an estimated £83.7 million ($146.6 million) as of the period April to June 2008.
The BCCI was founded in 1783. It represents the business interests of an estimated 4,000 small to large companies in the Midlands region and manages the Midlands World Trade Forum, an international trade group with over 600 members drawn from across the region.
According to Ryan Murphy, the company's project finance director, Biwater is currently executing a major water supply project in Khartoum, Northern Sudan that is meant to supply 1.5 million people with treated drinking water.
The project is financed by FMO, the development bank of the Netherlands , the Export Credit Insurance Corporation of South Africa and the Import Export Bank of Malaysia .
He also told the EastAfrican that they are currently prospecting for potential projects in Uganda and Kenya , including one in Kisumu.
Besides, the semi-permanent houses have a maintenance free lifespan of three years which can be extended to over 30 years through addition of specific components like roof truss and adobe finish.
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