Manufacturers in the region will establish a special purpose vehicle to help facilitate joint investments in capital intensive and priority sectors.
According, to regional industrialist bodies, this will help strengthen the sector’s capacity to effectively utilise the available resources to improve the sector’s productivity and exports.
Speaking at a recent meeting in Kampala, Uganda, the manufacturers also resolved to engage the East African Community (EAC) Secretariat and East Africa Businesses Council (EABC) to draft strategies that will protect regional firms from harmful competition.
According to Robert Bayigamba, the Rwanda Association of Manufacturers (RAM) chairman, they will also prioritise capacity building through increased investments in human capital and use of modern technologies.
“We are lobbying for uniform policies for motor vehicles, textiles and apparels, leather and footwear across the EAC bloc to create a coherent legal regime for the development of these sectors. This is essential to create jobs for East Africans, fight poverty and promote innovation and technological advancement,” Bayigamba said.
He said the EAC secretariat and EABC were expected to boost regional skills development by mainstreaming apprenticeship, internship, and graduate on-job training programmes, as well as encourage vocational training in schools and universities.
Buy-East Africa, Build East Africa scheme
The industrialists urged regional governments to prioritise EAC companies in public and private procurement, arguing that this will create necessary demand for locally-manufactured products. It will also help support technology-based start-ups and boost the firms’ financial capacity.
Denis Karera, the EABC chairman, said the council was working with the EAC Secretariat to prepare a regional promotional strategy to implement the Buy East Africa, Build East Africa campaign this year.
“We also need to put in place a regional local content policy to give goods made within the region some preferential treatment and protect them from unfair competition,” he noted.
According to Betty Maina, the chief executive of the Kenya Association of Manufacturers, consuming locally-manufactured products will increase competitiveness of the sector, and should therefore be supported by regional leaders and private sector players.
Engaging other blocs
Manufacturers resolved to strengthen ties with other blocs, like the BRICS countries, as one of the ways to increase trade and market opportunities. BRICS is the association of five major emerging national economies – Brazil, Russia, India, China and South Africa.
“The EAC should formulate a regional strategy for engagement with the BRICS countries with a view to leveraging and attracting Chinese investors, and positioning the region as the number one stop for investors,” Dr Samuel Nyantahe, the chairman of the Confederation of Tanzania Industries, said.
Power woes
Meanwhile, industrialists have raised concern over inadequate power supply, saying it was increasing the cost of production and making the region less competitive.
Electricity tariffs constitute between 20 to 50 per cent of the total cost of production and, according to manufacturers, more should be done to reduce this expenditure if the sector is to be sustainable going forward.
“There is need for dialogue with the relevant stakeholders to find measures that will enhance access to constant and affordable energy by the manufacturing sector,” Anne Rwigara, the managing director of Rwanda Premium Tobacco, said.
Source: The New Times
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