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Press Release Kenyan Minister for Industrialisation Hon. Henry Kosgei opened the Regional Validation Workshop on the proposed EAC Industrialisation Policy and Strategy today with a call on Partner States to institute joint and coherent policies to accelerate industrialization in the region. The one-day workshop held at the Laico Regency Hotel in Nairobi, Kenya was convened to provide a platform for stakeholders from EAC Partner States to brainstorm broadly on the Final Draft Policy document and to make specific recommendations on a number of key policy areas. These key policy areas include considerations for establishment of regional industries, industrial promotion and cooperation; infrastructure and necessary institutions to support efficient operations of regional industries; financial mechanisms to support investment in the regional industries; and an institutional framework for coordination and implementation of the recommendations. Delivering a keynote address, Hon. Kosgei decried the poor performance of the EAC manufacturing sector relative to regions such as East Asia. As such he asserted that “we need to collectively as a region and individually as Partner States embark on a long term process of modernizing our economies through joint and coherent policies and programmes geared towards supporting accelerated industrialization”. The Minister went on to outline these policies and programmes as diversification of the production base and attainment of minimum value addition; infrastructure development; development of human resource skills levels and strengthening innovation; providing supportive regulatory frameworks and mobilizing resources for industrial development. He noted that the region only needed to set its priorities right. Hon. Kosgei also remarked that accelerated industrialization in the region had become possible “thanks to the integration efforts that have culminated into signing of the Common Market Protocol and its subsequent ratification”. He cautioned however that the region must create a stable business and regulatory environment that fosters the growth of Micro, Small and Medium Enterprises, which he described as a major cog in the wheel for employment and income generation in the region. The EAC Deputy Secretary General (Productive and Social Sectors) Mr. Jean Claude Nsengiyumva said the workshop was a crucial milestone towards the continued quest for a regional framework that supports sustainable, competitive and balanced industrial development in the region. This, he added, would maximize the opportunities presented by the Common Market and further consolidate the gains achieved under the Customs Union. The key thrust of the proposed EAC Industrialisation Policy and Strategy is to create framework conditions to support establishment of regional industries and to drive efforts to ensure balanced industrial development in the region. Some of the sectors considered as regional industries include: pharmaceutical manufacturing, agricultural machinery & equipment, iron & steel mills; computer & ICT manufacturing and mobile telephony. Other key policy objectives include full mechanisation of agricultural production; reorientation of the regional manufacturing sector to embrace advanced technology and high value addition production; promotion of mining and mineral processing activities; and facilitation of programmes to upgrade Small & Medium Enterprises (SMEs). The Policy also aims to facilitate industrial land leases; foster development of the necessary human resources; create capacity for industrial research and development; and provide adequate industrial finance through public-private approaches and the development of a regional capital pool to facilitate development of priority regional industries. The recommendations of the workshop will be incorporated into the Draft Policy and Strategy and thereafter the documents will be presented to the Council of Ministers for adoption. Representatives of Government agencies concerned with industrialisation and trade, manufacturers, manufacturing associations, private sector associations, business organisations, academia and development partners attended the workshop. Background/Additional Information Industrial development is a key area of co-operation by Partner States as outlined in Article 79 and 80 of the Treaty; and Article 44 of the Common Market Protocol. Cooperation in Industrial Development is aimed at contributing to the achievement of the Community’s broad objectives and more specifically, attainment of sustainable growth and development of the Partner States by promotion of a more balanced and self-sustaining industrial growth in the region. To this end, the Partner States undertook to improve the competitiveness of the industrial sector so as to enhance the expansion of trade in industrial goods within the region as well as export of manufactured products from the EAC; to further develop an EAC Industrialisation Strategy that will promote linkages among industries through specialization and complementation, facilitate the development of Small and Medium Enterprises (SMEs) and ensure the establishment of capital & intermediate goods industries that take advantage of economies of scale arising from the integrated market. The development of these industries would ensure that there is overall improvement in the intra-EAC trade. The EAC Heads of State, at its Sixth Extraordinary Meeting held in August 2008, gave further impetus and urgency to the development of industrial policy and strategy. The Summit called upon the Secretariat to urgently formulate an EAC Industrial and Investment Strategy supported by an effective institutional decision making framework with a view to promoting equitable industrial development in East Africa. Further to the Summit directive, the Secretariat engaged Log Associates, to develop an EAC Industrial Development Strategy and Policy in accordance with the Terms of Reference approved by the Council at its 12thMeeting. For more information please contact: Owora Richard Othieno, Ag. Head of Department; Corporate Communications and Public Affairs; Tel: +255 784 835021; Email: othieno@eachq.org |