KAMPALA, Uganda – Regional manufacturers last week asked that the East Afrian Community (EAC) governments favour them when contracting for goods and services.
In a set of resolutions and meeting as the First Manufacturing Business Summit, they agreed that public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups. 

‘To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA)’, a statement reads in part.

The Summit was attended by Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard  Sezibera, EAC Secretary General,  Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives,  Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Tabu Abdallah Manirakiza, Minister for Finance Republic of Burundi, Adam Kighoma Ali Malima Deputy Minister for Finance of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman.

The business people also called for a regional Local Content policy which clearly defines ‘local’ in a regional content  to ensure that preferential treatments accorded to nationals are extended to all suppliers within  in East Africa region.

The Summit was jointly organized by East Africa Community Secretariat and East African Business Council and hosted by the Uganda government. 

According to organisers, the forum ushered in a new dawn in the history of manufacturing in East Africa region as it brought together for the first time all shareholders in manufacturing under one roof to discuss the question of manufacturing and its role in deepening the integration and fostering economic growth in EAC.

It was suggested that o effectively utilize the available resources within the region for structural transformation of the manufacturing sector in key value chains, a regional special purpose vehicle (SPVs)  that facilitate joint investment in capital intensive and flagship projects  should be established.
The resolution stated that, ‘The framework should outline each country’s comparative and competitive strength in resources and inputs, and how EAC countries can collaborate and develop such strategic industries to avoid harmful competition.’

It was also resolved that the EAC formulates a regional policy for motor vehicles, textiles and apparels, leather & footwear  to create a coherent policy regime for the development of these sectors  which are crucial for employment creation, poverty reduction  and advancement in technological  capability.

EAC in collaboration with EABC to formulate a regional skill development and partnership programme targeting mainstreaming of apprenticeship, internship and graduate on-job training in school, TVET and university syllabuses/curriculum. 

‘Energy (power) is a vital input into manufacturing constituting between 20-50 percent of the cost of production. The East Africa Partner States are called upon to take measures to reduce the cost of power to through: reforms in the energy/power sector to reduce power lose, permitting industries to generate their own power and supply excess to the national greed, and introducing energy efficiency and conservation measures in industries.  To this end, EAC and EABC should organize a regional conference on “Competitive Energy Supply for sustainable Growth of Manufacturing in East Africa,’ the statement issued last week reads. 

It was also stated that the EAC should formulate a regional strategy for engagement with China in a view to leveraging and attracting Chinese investors, and re-location of manufacturing into the region taking advantage of the rising labour costs in China.

Source: East African Business Week

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