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East Africa industrialists seek to speed up integration issues

Xinhua, April 15, 2015 Adjust font size:

East African industrialists are set to meet in Nairobi from Thursday to discuss ways of speeding up regional integration issues as well as launch a network of manufacturers, organizers said on Wednesday.

The meeting, organized by Kenya Association of Manufacturers (KAM), is aimed at streamlining manufacturing issues and concerns within the East Africa Community (EAC) region while proposing solutions towards the same.

"The meeting also aims to get the buy-in of the executives as well as provide guidance on some of the broad areas that the Network will need to focus on," KAM CEO Betty Maina said in Nairobi.

The two-day meeting will together EAC manufacturers association chairmen, and CEOs to officially launch the EAC Manufacturers Network.

"In order to realize the potential of manufacturing sector in the EAC region, there is need to provide a systematic approach towards addressing the challenges that plague this sector. This can be done through a forum or a network of manufacturers in the EAC," said Maina.

The network will provide thought leadership and coordination towards growing the manufacturing sector in the EAC region as well as drive industrialization agenda in the EAC.

The manufacturing sector in EAC is fairly small, with Kenya having the largest number of manufacturing entities. On average, contribution by the manufacturing sector to the gross domestic product is estimated at 10 percent.

According to KAM, while it is still a relatively low stage of development on average, there is enormous potential for this sector to develop.

Maina cited high energy cost and lack of an efficient infrastructure system as some of the notable challenges facing the industry.

"It is however important to note that considerable effort has been made by the EAC governments to improve infrastructure facilities in order to facilitate the smooth flow of goods in the region," she said.

Other challenges affecting the sector include competition from cheap imports, use of old technology, high tax rates, and overlapping regulation from numerous different authorities.

Maina said developing and upgrading regional value chains is critical if the manufacturing sector is to grow. She said the EAC has developed the industrialization policy and strategy, which is a good start, and called for efforts to be concentrated on ensuring that implementation is done in the right manner. Endi