History was made in recent days. Top trade and development officials from all across the globe gathered December 15-18 to discuss economic growth opportunities and international commerce — the World Trade Organization’s (WTO) Ministerial Conference — and that meeting took place … in Kenya. It was the first time that this biennial meeting of the world’s key trade decision makers has ever been held in East Africa. That’s not a coincidence. While much of the world is battling economic uncertainty and tepid growth, the nations of the East Africa Community (EAC) — Kenya, Burundi, Rwanda, Tanzania and Uganda — are quietly putting into place the building blocks for substantial growth, productivity increases and profitable trade opportunities. East Africa’s aggressive steps have not gone unnoticed, as evidenced by the WTO’s decision to convene its all-important Ministerial Conference in Nairobi.While the WTO Ministers negotiated programs, rules and agreements for the global marketplace, key private sector representatives, thought leaders and economic development officials from around the world were also in Nairobi going about the equally important task of actually making trade, investment and growth a reality.
This included Canadian officials who have made clear their interest in doing business in and with East Africa, particularly in the energy and mining sectors. This conference, the annual Trade and Development Symposium (TDS), is where critical stakeholders have an opportunity to confer and share ideas for creating greater opportunities for enhanced trade and sustainable growth; it offers a unique and vital platform for wider discussions that wouldn’t be possible in the confines of the WTO negotiations. The timing was perfect. East Africa’s potential is virtually unmatched among both developing and developed economies. The combined GDPs of EAC nations is more than $150 billion, with a forecast rate of growth for 2015 of 6.8 per cent — more than double the current growth rate of Canada and most other major economies. With a rapidly expanding middle class, the combined populations of the EAC include more than 150 million consumers — consumers who are ready to buy in the world marketplace.


“The point is clear: East Africa is open for business.

Understanding both this tremendous opportunity and the challenges that remain as East Africa works to unlock its potential, regional organizations such as TradeMark Africa, a trade assistance agency supported by the nations of the EAC, are moving rapidly and aggressively to identify and remove obstacles to trade and development. And Canada looms large in their plans. Establishing and enhancing an attractive and secure environment for Canadian investors is a high priority for the EAC and TradeMark Africa. TradeMark Africa has been at the forefront of targeted interventions to help unlock this potential: creating platforms to identify and locate non-tariff barriers that drive up transportation costs, introducing electronic cargo tracking systems that empower revenue authorities and reduce clearing times, running capacity-building exercises for women traders. These interventions tackle not just the symptoms but the root cause of poverty.
They help EAC countries develop sustainable channels of growth that increase economic opportunity for citizens, improve their capability to raise and collect revenues locally and ultimately help developing countries move beyond aid. This is a goal we can only sustainably realize when we no longer have a situation where it costs US$5,000 to ship a car from Addis Ababa to Abidjan that would cost US$1,500 to ship from Japan to Abidjan. The nations of East Africa are taking significant steps to attract critical investment dollars and the business expansion those dollars will provide by developing an attractive and secure business environment. A perfect example is the East Africa Government and Private Sector Compact. This partnership has been established for the express purpose of connecting both international and regional businesses directly with government and trade officials to identify and tackle obstacles to enhanced commerce, job creation and investment.
Improved transportation infrastructure, and modernization of key ports, are planned and underway. These will dramatically reduce the costs of access to EAC markets. Integrated border management and streamlined regulatory processes will ease the flow of goods both into and out of East Africa. The list of specific efforts goes on, but the point is clear: East Africa is open for business and is making the necessary investments to, in turn, allow the international community to make safe, secure and profitable investments in a region that is poised for unprecedented growth. Ali Mufuruki is a Tanzanian entrepreneur, philanthropist, public speaker and leadership coach. He is currently chair of Trademark East Africa, an organization funded by a range of development agencies with the aim of growing prosperity in East Africa through trade. The views, opinions and positions expressed by all iPolitics columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of iPolitics.

Source: iPOLITICS

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.