Dar es Salaam, Tanzania, Sept 6 – The East African Community (EAC) Secretary-General, Peter Mathuki says that investments in industrial parks and infrastructure is key to boosting the region’s competitiveness and subsequently increase IntraEAC trade.
Mathuki, who spoke in Dar es Salaam during the opening session of the East Africa Trade and Industrialization Week, urged EAC partner states governments to focus on strengthening institutional frameworks and policies that will accelerate economic growth in the region.
“Currently, manufacturing contributes to GDP a meagre 8.9%. To achieve the set target of 25% in 2032, there is a need for diversification of the manufacturing base and raising local value-added content resource-based exports,” he said.
He said enhanced industrial productivity could be achieved through an agricultural development-led industrialization strategy and strengthening of research and technology.
“Instead of competing, EAC Partner States need to complement each other. Harnessing our comparative advantage by collectively improving infrastructure connectivity will fast-track regional development,” Mathuki added.
He further called for the provision of long-term stimulus packages for private sector development and sector-specific incentives for the established regional value chains.
Mathuki reaffirmed EAC´s commitment to finalizing the Common External Tariff (CET) before the end of 2021.
CET is aimed at among others to promote the Community´s domestic industries and safeguard the region from international shocks before the end of 2021.
Fast-tracking the finalization and implementation of EAC Regulations on liberalization of air transport services, Mathuki said, will lower flight costs and in turn reduce the cost of doing business in the region.
“With only about 2% of East Africans vaccinated, it is critical that the private sector leads deliberate public campaigns on Covid-19 vaccination and jointly to enhance EAC as an investment destination,”he added.
Kitila Mkumbo, Tanzania’s Minister for Industry and Trade, on his part called for joint investment by EAC Governments and the Private sector in skills development.
“Only 50 percent of our workforce are employable in the current job market. the public-private sector should come up with a strategy on skills development to fill this gap,” Mkumbo noted.
