Expected Sector Outcomes

The following are expected to be realised as outcomes of the EAC industrialisation process in the EAC region:

Broad, Expected Long-term Outcomes / Impact

Progressively contribute to an increase in:

The manufacturing industry’s contribution to the regional GDP, currently at an average of 9.7%, to an average of 25% in 2032. This growth will have multiplier effects on the agricultural and services sectors;
Manufacturing-based employment currently at 456,000 to about 2.3 million in 2032;
Regional GDP, currently at US$ 110.3 billion to about US$ 238.9 billion in 2032 (based on a projected annual GDP growth rate of 6%);
GDP per capita currently at US$ 769 to US$ 1,300 in 2032 (based on a population growth rate of 2.8% annually);
Manufactured value added per capita, currently at US$ 50 to US$ 258 in 2032; and
The average score on the World Economic Forum Competitiveness Index currently at 3.4 to 4.5 in 2032.

Streamlined and coherent policy framework to support deepening of regional production systems and business linkages;
Harmonised policies, strategies and business climate regarding Small and Medium-sized Enterprise (SME) activities in the region;
Strengthened institutional and policy management capacities of the major stakeholders;
Reinforced capacities of the technical support institutions, business advice and consultancy centres;
Establishment of new financial mechanisms and products for SME development and upgrading;
Annual increase in employment by 10% in the manufacturing sector and new employment opportunities created indirectly in agricultural sector and services;
Growth of industrial production at a minimum of 10-20% per year;
Improved productivity, flexibility, strengthened managerial capacities and marketing skills, and the production costs mastered and cut down;
Increased value added by 10-15% per year; and
Enhanced exports capacities and imports substitution and stronger linkages across the priority value chains.