Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
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
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.
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.
"We were offered a plot right within the Kigali city centre; such investments often get better results because of their advantaged location," he explained.
He noted that three-acre Lakilaki plot, located nearly 10km from Arusha city centre along the Dodoma road, would be slow in getting financiers.
Other locational factors which favoured Kigali included cheaper air connections between the Rwandan capital and the rest of the region, when compared to Arusha, he explained.
The two-acre plot offered in the neighbouring country is already serviced with electricity, a tarmac road, cable wire for Internet and telephone lines, which is not the case with Lakilaki.
Mr Luzze further revealed that the Rwandan government has promised to facilitate EABC employees with tax holidays once the regional body relocates there.
"Rwanda says: you don't pay taxes while you are there. In Tanzania, you have to pay taxes. Which is the better package?" he posed.
However, he pointed out that the move has mostly been dictated by the high rate of return for investment on the land in Kigali and associated advantages and not a move to ditch Arusha which, according to him, had initially been their preferred choice for the project.
"We are not spurning Tanzania's offer; we're still going to develop the Arusha plot which should be the EABC's liaison office there," he said.
EABC was formed in 1997 as a voice of the private sector for EAC. Arusha was deliberately made head office to enable it to liaise with the community secretariat based here.
In the quest to expand its activities as well as reduce the rent bill currently standing at $4,000 a month, the body requested land from the Tanzania government some eleven years ago.
"We as EABC can't tell why it was delayed, but last year we revisited the request by seeing the Arusha regional and district authorities. Because of the delayed response, we sought other options," he further explained.
The executive director hinted that the new headquarters project could take up to two years, but he could not explain the fate of regional organisations affiliated to EABC and using its Arusha offices.
These include the East African Employers Organisation (EAEO), East African Farmers Federation (EAFF) as well as the EA Women-in-Business, EA Private Sector Standards and EA Professional Services platforms.
"They can choose to remain in Arusha to liaise with EAC," he explained, noting that the Council intends to establish liaison offices in all the East African capitals.
EABC is the oldest organisation affiliated to EAC to be established in Arusha. Others are the East African Law Society (EALS) and the East African Trade Union Confederation (EATUC).
Back to The Citizen: Reason why EACB is moving base to Kigali
Reason why EACB is moving base to Kigali - National - thecitizen.co.tz
MY TAKE
I know Air Uganda, Rwandair and Kenya Airways ply to Kilimanjaro whereas Air Tanzania flies to Bujumbura though from Dar and Fastjet is in the process to ply to Uganda, Rwanda and Kenya. Then we should look at our own doing that let to the opportunity to slip away from our fingers, imagine issuing a plot took over a year and imagine till today we don't have a vibrant national airline, when Precisionair sought a partnership with the GOT, people in here opposed a bail out of GOT to PW and yet that was to be less than US$ 40 million in exchange of shares in a more viable airline. At times to we have to look further to see a bigger picture and not some idle and short shortsightedness minds! Way to go Rwanda till we come to our senses...
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
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.
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.
"We were offered a plot right within the Kigali city centre; such investments often get better results because of their advantaged location," he explained.
He noted that three-acre Lakilaki plot, located nearly 10km from Arusha city centre along the Dodoma road, would be slow in getting financiers.
Other locational factors which favoured Kigali included cheaper air connections between the Rwandan capital and the rest of the region, when compared to Arusha, he explained.
The two-acre plot offered in the neighbouring country is already serviced with electricity, a tarmac road, cable wire for Internet and telephone lines, which is not the case with Lakilaki.
Mr Luzze further revealed that the Rwandan government has promised to facilitate EABC employees with tax holidays once the regional body relocates there.
"Rwanda says: you don't pay taxes while you are there. In Tanzania, you have to pay taxes. Which is the better package?" he posed.
However, he pointed out that the move has mostly been dictated by the high rate of return for investment on the land in Kigali and associated advantages and not a move to ditch Arusha which, according to him, had initially been their preferred choice for the project.
"We are not spurning Tanzania's offer; we're still going to develop the Arusha plot which should be the EABC's liaison office there," he said.
EABC was formed in 1997 as a voice of the private sector for EAC. Arusha was deliberately made head office to enable it to liaise with the community secretariat based here.
In the quest to expand its activities as well as reduce the rent bill currently standing at $4,000 a month, the body requested land from the Tanzania government some eleven years ago.
"We as EABC can't tell why it was delayed, but last year we revisited the request by seeing the Arusha regional and district authorities. Because of the delayed response, we sought other options," he further explained.
The executive director hinted that the new headquarters project could take up to two years, but he could not explain the fate of regional organisations affiliated to EABC and using its Arusha offices.
These include the East African Employers Organisation (EAEO), East African Farmers Federation (EAFF) as well as the EA Women-in-Business, EA Private Sector Standards and EA Professional Services platforms.
"They can choose to remain in Arusha to liaise with EAC," he explained, noting that the Council intends to establish liaison offices in all the East African capitals.
EABC is the oldest organisation affiliated to EAC to be established in Arusha. Others are the East African Law Society (EALS) and the East African Trade Union Confederation (EATUC).
Back to The Citizen: Reason why EACB is moving base to Kigali
Reason why EACB is moving base to Kigali - National - thecitizen.co.tz
MY TAKE
I know Air Uganda, Rwandair and Kenya Airways ply to Kilimanjaro whereas Air Tanzania flies to Bujumbura though from Dar and Fastjet is in the process to ply to Uganda, Rwanda and Kenya. Then we should look at our own doing that let to the opportunity to slip away from our fingers, imagine issuing a plot took over a year and imagine till today we don't have a vibrant national airline, when Precisionair sought a partnership with the GOT, people in here opposed a bail out of GOT to PW and yet that was to be less than US$ 40 million in exchange of shares in a more viable airline. At times to we have to look further to see a bigger picture and not some idle and short shortsightedness minds! Way to go Rwanda till we come to our senses...