A few years ago Kenya and Uganda entered in to a joint concession agreement with Rift Valley Railways Ltd. (a South African Consortium) to manage their respective railway networks. Massive investment was required to bring both country rail networks to a useable state as both had never been upgraded since they were built in the late 19th century. Neither country had the funds to do the required upgrade and sought to concession. However, only a year into the agreement, Uganda and Kenya are looking for an exit route claiming that RVR has not kept up to the agreed performance contract. Is privatization the best way forward for infrastructure development in Africa?
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