Reason why EACB is moving base to Kigali

The Kigali site can easily attract financiers and the rate of investment returns will be higher and recouped in a shorter period than it would be in Arusha”, he pointed out.PHOTO|FILE 

By Zephania Ubwani ,The Citizen Reporter

In Summary

“Rwanda responded within 21 days (in March) and offered us a plot in prime zone within Kigali whereas Tanzania response was received last month,” he explained.

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Arusha. The East African Business Council (EABC) confirmed yesterday it was pulling out of Arusha in favour of Kigali.

The organisation’s executive director, Mr Andrew Luzze, told The Citizen that the decision was dictated by economics rather than any deliberate move to weaken Arusha as the regional seat.

“EABC is not getting money from governments; it’s funded by members and, therefore, we’ve to invest where we will be assured of the high returns in the short run,” he said.

He noted that it would make a lot of business sense to undertake the council’s headquarter construction project in Kigali.

“Lakilaki (a site near the Arusha Airport) is not bad, but we are looking for a place that will give us better returns in the short run. The Kigali site can easily attract financiers and the rate of investment returns will be higher and recouped in a shorter period than it would be in Arusha”, he pointed out.

Mr Luzze was, however, categorical that the move to relocate to Kigali followed a delay on the part of the Tanzania government to heed their request for land for the headquarters project.

According to him, the request for land in Arusha was made in 2003 and renewed last year, but it was not until last month that the offer was finally granted.

“When the request to the Tanzanian government took too long, in February we decided to make a request to four other partner states in the bloc.

“Rwanda responded within 21 days (in March) and offered us a plot in prime zone within Kigali whereas Tanzania response was received last month,” he explained.

The executive director said the matter was subjected to discussions at the annual general meeting of the council, which commissioned a study comparing Arusha and Kigali.

“The cost-benefit analysis favoured Kigali; the decision was unanimously supported by members from all the five states,” he explained. The body has 170 members, 60 of whom are from Tanzania.

Mr Luzze was quick to note, however, that Rwanda government has always been comparatively more supportive of the headquarters project.