The Observer (Kampala)
Pamela Ankunda
10 March 2010
Uganda will in April this year, host the 3rd East African Investment Summit under the theme 'EAC Common Market: The Preferred Investment Destination'.
This comes after Rwanda 2008, and Kenya 2009. While preparing for the first summit, Rwanda engaged potential investors to promote business in the region. Dividends have now started to show. While they expected 800 guests then, Rwanda registered over 1,000 participants.
It is no coincidence that Rwanda has been moving up the ranks in terms of investment, and so has the East African region in general, evidenced by the fact that in the recent survey of Africa's top two hundred firms, East Africa has joined the team of the billion-dollar range of businesses. More can be done though.
Since the first summit, a number of recommendations have been implemented. The need to reverse the brain drain is taking shape with doctors' salaries and work conditions taking centre stage.
Other initiatives like branding and availing East African products in the region are positive steps. We must support these forums that provide opportunities for the exchange of ideas.
At the time, President Museveni emphasised the need to let the private sector take centre stage in poverty reduction and wealth creation. And of course the private sector can only flourish when security of person is guaranteed and infrastructure is in place.
A quick search indicates that since the Customs Union came into force, the intra EAC volume of trade increased from $1.3 billion in 2003 to $2.2 billion in 2006.
The heads of state from the partner states have been instrumental in driving these forums and, therefore, these comprehensive and integrated infrastructure development initiatives should not be underestimated.
The EAC integration process is a boost towards further regional integration, and further paves way for other opportunities to enter world investment and trade ventures. For example, East Africa in itself, with its abundant resources, has the undoubted potential to feed the world if agro-processing and agro-business opportunities took the lead.
Most of these opportunities may not make attractive reading for people obsessed with politics of the day, yet the long-term East African and even longer term African Unity demands immediate attention to these.
For example, given the fact that the Food and Agricultural Organisation has mobilised over $ 10 billion, Uganda should show its interest in further investment in fertilizers that would increase value addition.
Also, the EU market remains open for Ugandan honey and there is hope that the country will become open for aquaculture.
While focusing on industrial growth and regional trade, value addition still remains the ultimate way out. It is no secret that as much as developed countries selectively accord access to their markets, they also protect their industries by imposing technical barriers to trade.
EAC should, therefore, develop policies and strategies on prohibition of exports of raw materials, which can be processed within the region in order to promote value addition.
This takes in the financial mobilisation and accessibility for enhanced economic growth whose main challenges are high interest rates, high quality ratios in terms of money in circulation outside the banks and very low rates of saving.
Every secondary school student at ordinary level must have some basic knowledge about the world of business and finance.
The fact that we target over 2,000 investors and business people is no mean feat. Right now, the immediate unemployment statistics are glaring. Since we are steadily moving towards a fully integrated economic community where goods, capital, labour and services will move freely across borders without hindrance, it is important to highlight to the world the abundant potentials that East Africa offers.
Uganda is targeting an improved business environment in the region and creation of more ventures between local and international businesses with the hope that most of these will operate under a fully-fledged Customs Union.
The different Public-Private Partnerships that target infrastructure development provide that much needed answer to unemployment. With the establishment of a fully-fledged Customs Union, and the July launch of the East African Common Market, the opportunity that underlies investment sums up the fact that East Africa has indeed finally opened up as one market and one business destination.
The author works at the Uganda Media Centre.
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