Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Investors hail EA market protocol

NAIROBI, Kenya, Nov 22 – The East Africa Business Council (EABC), the regional apex body of business associations has welcomed Friday\’s signing of the Common Market Protocol noting that it will make the region stronger.

Council Chairman Faustin Mbundu said the business environment in East Africa has greatly improved with many of the stringent restrictions to trade and investment having been removed.

"The signing of the Common Market Protocol could not have been possible without the personal commitment of Heads of State towards EAC integration process. The integration has made the region stronger, through bringing about significant economic reforms, liberalized markets, and diversified trade," he said in a memorandum to the EAC Heads of State.

However, he said that as the region moves towards full integration, there is need to urgently address challenges such as infrastructure bottlenecks, persistent Non-Tariff Barriers and frequent policy reversals if the region is to attain the desired competitiveness.

"The current poor road network, inefficient railway system, and expensive and unreliable electricity supply continues to have a negative impact on the business environment in the region," he protested.

The arbitrary suspension of the Common External Tariff by some countries during pre-budget consultations is the other challenge the private sector was facing ahead of a full fledged Customs Union, he added.

For instance, the sensitive status accorded to the cement sector was removed in June 2008 with import duty being reduced from 40 percent to 25 percent while refrigerated trucks, insulated tankers, garbage collection trucks and 4 wheel drive tourist vehicles were exempted from duty without proper consultation with industry stakeholders.

"Frequent and un-transparent policy changes affect the conditions upon which investment are based and affect the competitiveness of local industries," he said.

Mr Mbundu therefore called upon the EAC Partner States to have appropriate consultations with all stakeholders before decisions are made.

Advertisement. Scroll to continue reading.

But while he reiterated EABC\’s commitment to continue tracking the presence of Non-Tariff Barriers such as police roadblocks and weighbridges through constant monitoring and reporting, he asked EAC governments to put more effort in eliminating them.

"They should take a regional approach to the reduction of these barriers through reviewing and harmonizing policies, regulations and other legislations," he proposed.
 

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...