Last year, Kenya held an official state visit from President Yoweri Museveni of Uganda. This saw eight new agreements signed, building on 17 already existing ones, that strengthened ties between the two countries. When enacted, they could turn the two countries into a business powerhouse based in East Africa, with other countries like Tanzania also joining and bolstering the region’s reputation.
iGaming and Lotteries
One area the two states have collaborated on is with the National Lotteries and Gaming Regulatory Board (NLGRB) of Uganda, which hosted a delegation from the National Lotteries Board (NLB) as they search for a new tender. It is part of an effort from East African countries to address cross-border iGaming regulations, in a sector that is growing and becoming a bigger, taxable source of revenue every day.
Outside of Kenya’s lottery, there are now several providers who have their own casinos and sportsbooks running. They have grown the sector through the use of promotions like a midweek jackpot bonus, which is added to sports betting, as the country begins to get to grips with what has been known as ‘the accumulator bet’ in other countries.
Energy and Petroleum Interests Merge
In February, both countries began to finalize deals over the shared Kenya Pipeline Company (KPC), bringing Uganda into its shareholding structure. The investment will be made by the Uganda National Oil Company (UNOC), a state-owned entity that oversees the oil and petroleum sector.
The deal has been undertaken to increase energy cooperation in the region and safeguard national interests. This will bring down prices in Uganda and increase the supply over the long term.
There are 1,700 kilometres of petrol pipelines, spanning from Mombasa, through to Nairobi and onward to Kenya and then Uganda. Demand for petroleum products is estimated to grow at a rate of between 7 and 10% in the country due to new urban areas and businesses popping up. Any disruption to the pipelines would have a serious impact on Uganda, making it a priority for the country.
Devki Mega Steel
The fruits of this will be borne by Devki Mega Steel. The largest production plant in East Africa, it will be built in the Tororo region of Uganda and create 15,000 jobs. The Devki group is a Kenyan company, and a future iron ore processing plant to service this is planned in Kabala. This alone is expected to create 16,000 jobs.
Steel is often imported, meaning this adds huge price tags to it in a global market which is seeing soaring precious metal prices. Dr. Narande Raval, one of the industrialists at the helm of the project, added that “Industrialization is the only path to prosperity. Importing steel is importing poverty.”
Thus, the area is undergoing rapid regeneration and industrialization. Yet this is not just at a manufacturing level. Entertainment is also becoming a driving factor, and will continue to do so as jobs bring increased disposable income to the region. By planning their growth well, both countries can benefit from the taxable income this will bring.
