East African rails could shape regional links

Significance

The announcement comes as neighbouring Ethiopia moves toward completing a rail link with Djibouti to increase access to the Red Sea port. Ethiopia's rail expansion is part of a rail building spree across East Africa -- a region attempting to improve economic linkages.

Impacts

• Rwanda's renewed relationship with Tanzania will strengthen as economic linkages grow.
• The trucking industry may attempt to disrupt economic activity if the new railways erode their business.
• Ethiopia's economic ties with Djibouti will grow as the Red Sea port becomes more accessible.
• Kenya may need to rethink other large-scale development projects following Ugandan and Rwandan preferences for Tanzanian options.