EAC boss urges private sector to play role in stimulating regional economic growth

Arusha. The East African Community (EAC) Secretary General, Ms Veronica Nduva, has urged the private sector to invest in potential sectors to promote the region’s economic growth

Apart from the sectors such as manufacturing, agriculture, and services, the sector has been called upon to promote regional integration, trade, and investment to maximise the benefits of economic growth.

Ms Nduva made the comment in Nairobi, Kenya, on Thursday, August 15, 2024, during her meeting with the private sector stakeholders as the meeting was hosted by the Kenya Private Sector Alliance (KEPSA).

She said the EAC Secretariat had made great strides to create a favourable environment for the prosperity of the private sector, saying that more still needs to be done.

"East Africa needs collaboration between public and private sectors in achieving a more integrated and prosperous East African region, ultimately enhancing the ease of doing business," she said.

Ms Nduva also noted that to forge forward, the regional private sector needs to find common grounds where safeguarding national interests align with promoting regional benefits.

“To reduce protectionism by the EAC partner states, the private sector needs to embrace product diversification, specialisation, and value addition in manufacturing and take advantage of the over 300 million regional markets,” she insisted.

Further, she provided an overview of the intra-EAC-trade value that has increased by 14 percent to $12.2 billion in 2023 compared to $10.7 billion recorded in 2022, equivalent to 9.2 percent.

According to her, the region’s share with the rest of the world has reached 13 percent.

“The EAC’s total trade grew by 2.3 percent to $80.6 billion in 2023 from $78.7 billion in 2022,” she added.

The KEPSA chair, Dr Jas Bedi, said the EAC Secretary General Roundtable had been convened to discuss the need for the region to promote investment and private sector development.

Dr Bedi said EAC was still facing challenges in industrialisation as the region remained under-industrialised due to factors like inadequate access to electricity, high production costs, poor infrastructure, and protectionist policies.