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Industrialization & SME Development

EAC to launch Industrial Competitiveness Report 2017 in Dar es Salaam

East African Community Headquarters, Arusha, 8th November, 2017:

The East African Community (EAC) together with the United Nations Industrial Development Organization (UNIDO) will launch the first ever EAC Industrial Competitiveness Reports (ICR, 2017) on 10th November 2017, in Dar es Salaam, Tanzania.

The aim of the ICR is to provide a compass to policy-makers, the private sector (in particular manufacturing firms and associations), and generally a wider range of stakeholders on the broad direction of the industrial development trajectory of the EAC and of the internal competitiveness dynamics among Partner States.

The report assesses EAC’s industrial performance vis-à-vis other regions and role models in Asia and Africa and sheds light on strategic short- and long-term industrialization paths  that EAC should pursue.

The Draft  report has been presented and discussed at various consultative meetings culminating in its validation, by the programme Regional Steering Commitee, at the regional workshop held in March 2017 in Dar-es-Salaam, Tanzania.

Speaking ahead of the launch the EAC Deputy Secretary General in charge of Productive and Social Sector, Hon Christophe Bazivamo, said the report provides a synopsis on the ‘State of Industrial Competitiveness in the region and highlights the policy actions required to restore or sustain competitiveness.

Notes to Editors

The EAC Secretariat in collaboration with UNIDO is implementing a programme on “Strengthening Capacities for Industrial Policy Formulation and Implementation in the East African Community” which was approved by the Sectoral Council on Trade, Industry, Finance and Investment during its meeting held on 22nd May 2015. 

Through the Programme specific trainings have been delivered at both regional and national levels to create, among others, capacity for industrial competitiveness analysis as envisaged in the EAC Industrialization Policy and Strategy. As a result, the programme has greatly contributed to enhancement of capacity for industrial policy analysis, design, monitoring and evaluation at Partner States and the Secretariat levels.

To ensure sustainability and full use of knowledge acquired in the trainings, the Secretariat in collaboration with UNIDO and a team of experts from Partner States took the initiative of preparing an EAC Industrial Competitiveness Report, 2017 (ICR-2017).

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For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania. 

The EAC Secretariat is ISO 2008:9001 Certified

EAC to release inaugural Industrial Competitiveness Report 2017

East African Community Secretariat; Arusha, Tanzania; 24 July 2017:

The East African Community Secretariat has prepared the 1st regional Industrial Competitiveness Report 2017, which will be released to the public in October 2017.

The inaugural Industrial Competitiveness Report (ICR) 2017 is the result of collaboration among selected experts from the EAC Secretariat and Partner States, from both public and private sector, trained by United Nations Industrial Development Organization (UNIDO) experts in selected courses and methodologies, including the UNIDO Competitiveness Industrial Performance Analysis, under the regional project Strengthening institutional capacities for industrial policy in the East African Community (EAC) and funded by the Republic of Korea.

Addressing a stakeholder workshop convened to discuss the findings at the EAC Headquarters on Thursday 20th July 2017, the EAC Deputy Secretary General (Finance and Administration), Hon. Jesca Eriyo said the Report was one of the analytical output stemming from the EAC-UNIDO Programme for Strengthening Institutional Capacities for Industrial Policy Management, Monitoring and Evaluation.

Hon. Eriyo reiterated that the Community had made tremendous progress in its integration roadmap and that the market enlargement arising from the Common Market had created immense opportunities for doing business in the region but more importantly, opportunities for increasing production, diversification of economic base, realization of economies of scale; and finally opportunities for accelerating industrialization in each Partner States and EAC region as a whole.

The Deputy Secretary General, who represented the Secretary General, Amb. Liberat Mfumukeko at the occasion, said that in the EAC Region, the capacity and performance of the public sector that deals with industry related matters was generally low, and as a result, implementation of industry related policies and strategies had in some cases been inadequate, constrained by a number of factors, including inadequate industrial governance systems as well as weak monitoring and evaluation frameworks.

She noted that other issues that need to be addressed to foster and sustain industrial growth include inadequate  capability to design,  implement and monitor policies and strategies; challenges to enhance private sector participation; and inadequate  systems for collecting, processing, storing and dissemination of  industrial information, among others.

The EAC official commended the Government of Korea for financing the programme and UNIDO, who is the implementing partner.

Addressing the same workshop, the EAC Deputy Secretary General in charge of Planning and Infrastructure, Eng. Steven Mlote decried the huge amount of resources that the Community is losing in exporting raw materials, leading to the loss of job and investment opportunities. He reiterated the need for the region to work together in developing the manufacturing sector rather than competing against each other.

The EAC Principal Industrial Economist, Mr. George Ndira said industrialization should be a concern for the EAC Secretariat and it (Secretariat) should continue advocating for industrialization as it is the surest way to lift Partner States’ economies from the dependency syndrome and help in pulling millions of the population from abject poverty.

Mr. Ndira, who was representing the Director for Productive Sector, said the ICR is a compass to assist the region in monitoring our progress towards the goal of economic transformation and diversification. “This workshop is an opportune moment for all us to understand where we are and how much distance we are yet to cover to get to a stable state for long-term economic prosperity” noted the EAC Principal Industrial Economist.

While presenting the findings of the EAC Industrial Competitiveness Report 2017, Mr. Andrea Antonelli from UNIDO’s Research and Industrial Policy Advice Group, said the main objective of the Report was to provide a compass to policy-makers, the private sector, and generally a wider audience of stakeholders interested and/or involved in industry on the broad direction of the industrial development trajectory of the EAC.

He said the Report was also intended to provide evidence-based, shared and implementable policy recommendations for the EAC and Partner States’ policy makers; and to generate further awareness on the importance to coordinate economic development activities in the EAC around a common goal to enhance industrial/manufacturing development.

“Specifically, the study was to provide a useful diagnostic tool for the EAC Secretariat as an important input to review its Industrial Policy and Strategy; act as a monitoring tool to assess progress against EAC and national industrial development targets and present a list of agreed indicators for EAC harmonized industrial performance assessment; among others” affirmed the UNIDO official.

The report, which will be launched and availed to the public in September/October 2017, states that Manufacturing Value Added (MVA) and manufacturing trade growth rates sustained by the EAC in recent years stand above global average but only around average of Sub-Saharan Africa.

However, these growth rates fall short of some of the targets set in the EAC Industrialization Policy and stand below similar Regional Economic Communities in Sub-Saharan Africa including ECOWAS.

The same growth rates of the manufacturing sector have not kept pace with the service sector, thus insufficient to impress that acceleration needed to achieve the structural change targets set in the regional and in most national industrial policies/overarching development plans.

The report argues that an important cause and at the same time consequence of this limited performance lies in the disconnected fabric of the industrial sector in the EAC Partner States, impressing only weak backward and forward linkages among manufacturing subsectors as well as with non-manufacturing sectors of the economy. Strong interlinkages would strengthen the economy and foster a more robust industrialization process.

On the other side, the past 10-15 years have shown signs of upward convergence among Partner States both in terms of MVA and manufacturing trade values, particularly with Tanzania, Uganda and Rwanda growing significantly faster than their regional role model, Kenya.

The EAC regional market proves to be one of the most dynamic markets in the world and hence provides a great opportunity for regional firms to expand.

While in most cases EAC manufacturing firms managed to increase their intra-regional exports in certain dynamic sectors, this did not happen at the pace and extent needed to match the EAC demand growth, thus resulting in the EAC losing market shares particularly against emerging economies such as India (pharmaceuticals, heavy petroleum), China (iron and steel products and fertilizers) and Malaysia (Fixed vegetable oils).

The above findings call for renewed efforts to boost the manufacturing sector in the region and in Partner States and should not discourage the latest emphasis placed by many Partner States in this important common endeavour. 

The comments received during the stakeholders workshop is expected to enrich phase two of the regional program on “Strengthening Institutional Capacities for Industrial Policy Management, Monitoring and Evaluation in the EAC region”.


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For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.

 The EAC Secretariat is ISO 9001: 2008 Certified

2nd East African Business Manufacturing Summit and Exhibition kicks off in Kigali

East African Community Secretariat; Kigali, Rwanda; 24 May 2017:

The Prime Minister of the Republic of Rwanda, Rt. Hon Anastase Murekezi said the EAC Member States, need to continue working as one team by harmonising policies that will boost the manufacturing sector in the region.

Rt. Hon Murekezi who  was the chief guest at the official opening of the 2nd East African Manufacturing Business Summit and Exhibition (EAMBS 2017) at the Serena Hotel in Kigali, Rwanda said ‘’The Collective action and harmonised policies will help the region to manage the consequences of economic growth as we work to stimulate the manufacturing sector”.

He disclosed to the summit that to date, the average contribution of the manufacturing sector to GDP of EAC is about 10%. It is planned that this contribution will reach 25% by 2032. It is also expected that by the same year 2032, EAC will have diversified the manufacturing base and raised the value of the local content of manufactured exports to at least 40% from the currently estimated value of 8%.

To be able to achieve these targets, EAC must focus on full implementation of the Common Market Protocol as well as on value addition for export products. Therefore, the EAC Industrialization Strategy and its Action Plan cannot simply be shelved documents. They must guide all our policy actions and deliver results, said Prime Minister

The Prime Minister also urged the region to promote Intra- African Trade by deepening Africa’s market Integration and significantly increasing the volumes of trade that African Countries undertake among themselves. ‘’As EAC Partner States, we should embrace the COMESA, EAC and SADC Tripartite Agenda which will open up a much wider market for our goods’’

Rt. Hon Murekezi reiterated the importance of the Private Sector as the engine of the transformation in manufacturing sector and called for all participants attending 2nd East African Manufacturing and Business Summit to use their experience and skills to advise EAC on how our region can better engage with the Private Sector to leverage higher levels of investment in manufacturing.

In his part,​ Rwanda Minister of Trade, Industry and EAC Affairs, Hon François Kanimba informed the participants that EAC Industrialisation Policy provide an avenue to promote the competitiveness of the modern industrial sector by placing strength on diversifying  manufacturing base, improving capacity, developing a strong Small and Medium Enterprises (SME) manufacturing sector and boosting exports of manufactured goods.

“I believe that this is the right time for stronger partnerships to be forged amongst various partners especially among the public and private sectors and member states but also the EAC and our fellow Regional Economic Communities. Let us therefore seize this moment and translate the political will prevailing in the EAC region into tangible results. ‘’

Addressing the same occasion, the EAC Secretary General, Amb Liberat Mfumukeko said that the region have the geographical and ​ comparative advantage in terms of resource endowments in form of minerals, oils, gases and agricultural commodities, which are the key ingredients for manufacturing. We are also creating competitive advantage by developing infrastructure i.e. our road network; railway network; sea and lake ports; air transport and   Information and Communications Technology, added Amb Mfumukeko.

The Secretary General called for private sector to steadfastly work with the government of EAC Partner States to identify industrial sectors where targeted support is required so as to unlock their growth and developmental potential. He urged the Partner States government to be keen in creating enabling environment for  competitive investment​ in the region.

The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Dr Mukhisa Kituyi, called for sustainable investment in an integrated manner in the region and noted that EAC was the gateway for Africa. Dr Kituyi said the region needs to model itself to the realities of the market; otherwise it will be left behind on the global market.

The Executive Director of the East African Business Council Ms. Lilian Awinja said for the region to become a middle income economy, or even to achieve Industrialization by year 2032, the manufacturing sector should be given the due attention it deserves, in terms of setting up a conducive environment for the manufacturing sector to continue to grow, prosper and become competitive within and outside the region.

She called for the EAC region to formulate Regional Local Content Policy with the aim of boosting the domestic value-add in the region.

Over 300 top executives in the manufacturing and agri-business sectors, high-ranking policy and decision makers, as well as leading financial institutions from Africa and beyond are participating in the 2nd East African Manufacturing Business Summit and Exhibition themed ‘’Harnessing the Manufacturing Potential for Sustainable Economic Growth in East Africa ‘’

The EAMBS 2017 is being organized by the EAC Secretariat in collaboration with the East African Business Council, the host Government of Rwanda and other EAC Partner States with the support of Development Partners.​


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For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.

All set for 2nd East African Manufacturing Business Summit in Kigali

East African Community Secretariat; Arusha, Tanzania; 17 May 2017:

The EAC Secretariat, East African Business Council, the Government of Rwanda and other Partner States are finalizing preparations for the 2nd East African Manufacturing Business Summit and Exhibition (EAMBS) to be held in Kigali, Rwanda from 23rd to 25th May, 2017.

Over 300 top executives in the manufacturing and agri-business sectors, high-ranking policy and decision makers, as well as leading financial institutions from Africa and beyond have already confirmed their participation.

H.E. Paul Kagame, President of the Republic of Rwanda, has been invited to grace the official opening ceremony of the Summit.

Other high level dignitaries expected to attend include: Dr Mukhisa Kituyi, Secretary General of the United Nations Conference on Trade and Development (UNCTAD), Amb. Liberat Mfumukeko, the EAC Secretary General; as well as line Ministers from all EAC Partner States, who shall engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.

Dr. Reginald Mengi, the Executive Chairman of the IPP Media Group Tanzania (Ltd), Mr. Ali Mufuruki, Chairman & CEO, Infotech Investment Group LTD, Ms. Phyllis Wakiaga, CEO, Kenya Association of Manufacturers are among the private sector heavyweights who have confirmed their participation in the Summit.

Speaking ahead of the Summit, the EAC Deputy Secretary General, in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, said the EAMBS offers an important platform for governments in the region to engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.

“The private sector, on its part, is expected to use the Summit to advocate for the acceleration of industrial reforms aimed at improving the investment climate in the EAC strategic sectors,” added Hon Bazivamo.

Hon. Bazivamo said that the EAC region has already identified strategic areas for industrial development in the region that bear comparative advantages and where significant private sector investment is needed to unlock potentials.

Hon Bazivamo disclosed that the EAMBS would put a special emphasis on the role of diaspora investors and will come up with special provisions on how they can be attracted to invest in the region.

The 2nd EAMBS will among other comprise the following sessions:

  • Manufacturing in the EAC Region, Public and Private Sector perspective;
  • The EAC Treaty and its’ protocols, objectives vis-à-vis reality;
  • Long-Term and Innovative Financing for the Manufacturing Sector & the Participation of the Diaspora;
  • The Role of EAC Governments in Promoting Local Content with a focus on Iron, Steel, Mining and Construction Materials;
  • High level dialogue on the Manufacturing—Trade nexus in the EAC;
  • Improved Competitiveness through skills and innovation;
  • Partners Roundtable /Financing to support Industrialization; and
  • Pharmaceuticals and Cosmetics: “Growing EAC’s nascent pharmaceutical industry.

The EAMBS is being organized by the EAC Secretariat in collaboration with the East African Business Council, the host Government of Rwanda and other EAC Partner States with the support of Development Partners.

Registration

For further Information or Registration Attendance, Exhibition or Sponsorship please contact:

Mrs. Angelika Farhan-Reimpell,
Business Development Manager,
East Africa Business Council (EABC)
afarhan[at]eabc-online.com and  manufacturingsummit[at]eabc-online.com)

OR

Ms. Jennifer Gache,
Senior Industrial Engineer,
EAC Secretariat
gache[at]eachq.org


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For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.

Preparations in High Gear for the 2nd East African Manufacturing Business Summit and Exhibition in Kigali, Rwanda

East African Community Secretariat; Kigali, Rwanda; 01 April 2017:
Preparations are in high gear for the 2nd East African Manufacturing Business Summit and Exhibition (EAMBS) to be held in Kigali, Rwanda from 23rd to 25th May 2017.

The EAMBS Conference and Exhibition is being organized against a backdrop of economic resurgence and high political commitment to pursue development driven by industrialization. The forum therefore stands to offer an important platform for governments in the region to engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.

Speaking during a press conference after the conclusion of the Regional Steering Committee's meeting for the preparations of 2nd East African Manufacturing Business Summit and Exhibition in Kigali, Minister of Trade, Industry and East Africa Community Affairs in Rwanda, Hon. Francois Kanimba said that the conference seeks to create an avenue for the private sector to advocate and campaign for the acceleration of industrial reforms aimed at improvement of investment conditions in the EAC strategic sectors.

Accompanied by Hon. Christophe Bazivamo, the EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Kanimba informed the press that the EAC region has already identified strategic areas for industrial development in the region that bear comparative advantages and where significant private sector investment is needed to unlock the potential. These strategic sectors include: agro- processing and agri-business; mineral processing; pharmaceuticals; construction materials; fertilizers & agro-chemicals as well as the strengthened leather & textiles and automotive sector, stated Hon. Kanimba.

The Hon. Minister noted that the EAMBS and Exhibition is expected to create a greater awareness about the opportunities and challenges arising from the Common Market Protocol for the regional manufacturing sector.

The Minister disclosed to the press that some of the key-issues to be addressed at the 2nd East African Manufacturing Business Summit (EAMBS) include;

  • How can the region market itself best? Where are the major investment opportunities (IPAs)?
  • What are currently the biggest challenges for regional manufacturers and how should they be addressed?
  • What are the success factors for manufacturers in the EAC?
  • How to gain competitiveness in price and quality?
  • How to deal with environmental concerns?
  • What do governments do in order to push local manufacturers (e.g. local content at procurement of public entities)?
  • What can be done against counterfeits, illicit trade and IP violations?
  • Can the development of a regional identity (proud to "Buy East African Build East Africa") help to promote and strengthen the internal market? How (and by whom) should that be done?
  • How important is customer service (thus customer satisfaction?) and customer awareness?
  • How to develop qualified labor force (industrial skills)?
  • What sectors are most affected by EAC regulations (positive and negative)?
  • Is there a specific need for action that can be addressed during the conference?
  • What role can the East African Diaspora play? Which supportive financing schemes are in place (Diaspora Banking)?

On his part, the EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo told the press that the Steering Committee Meeting appreciated results from the 2015 event and is building on them to prepare for the next event. “As regards recommendations from the first Business Summit, we developed action plans and policies which are helping the manufacturing sector in our region,” added Hon. Bazivamo.

The EAMBS conference will include an exhibition where investors, enterprises, researchers and academia collectively showcase new products and services as well as exhibit the latest advances in manufacturing technology and innovation, particularly those with relevance to small and medium enterprises (SMEs)

The 2nd EAMBS is expected to create greater awareness about the opportunities and challenges arising from the Common Market Protocol for the regional manufacturing sector. It is supposed to serve as a platform not only for initial business contacts, but also for exchange of ideas on how to address the existing challenges in the regional integration process.


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Notes to Editor: 

The 2nd high-level Manufacturing Business Summit and Exhibition is the follow up of the 1st Manufacturing Business Summit and Exhibition which took place at the Speke Resort Hotel, Munyonyo in Kampala, Uganda in 2015.

The biannual East African Manufacturing and Business Summit is being organized against a backdrop of economic resurgence and high political commitment to pursue development driven by industrialization. The forum therefore stands to offer an important platform for governments in the region to engage the private sector on critical steps needed to leverage higher levels of investment in manufacturing.

The expected outcome is significant impact on broader socio economic development objectives such as employment creation, technology transfer and wealth creation. The forum seeks to create an avenue for the private sector to advocate and campaign for the acceleration of industrial reforms aimed at improvement of investment conditions in the EAC strategic sectors.

The EAC region has already identified strategic areas for industrial development in the region that bear comparative advantages and where significant private sector investment is needed to unlock potentials. These strategic sectors include: agro-processing and agri-business; mineral processing; pharmaceuticals; construction materials; fertilizers & agro-chemicals as well as the strengthened leather & textiles and automotive sector.

For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.


East African Community
EAC Close
Afrika Mashariki Road
P.O. Box 1096
Arusha
United Republic of Tanzania

Tel: +255 (0)27 216 2100
Fax: +255 (0)27 216 2190
Email: eac@eachq.org