East Africa has become the
top performing region on
the continent.
“It has been less
affected by the decline in
commodity prices, while slowing
inflation and lower interest
rates have also been to their
benefit,” said Duncan Bonnett of
Africa House. “We are seeing the
region continue to grow at a far
quicker pace than the rest of the
continent.”
While East Africans are not the
most significant players in the
commodity sector, they have been
able to do several things right –
like ongoing development of the
mining industry, including oil
and gas.
“The slump in commodity
prices has therefore not hit the
region as hard as it has elsewhere
in Africa,” said Bonnett.
“Manufacturing and agriculture
are growing industries that are
being developed and we are seeing
the region grow at a far quicker
pace than the rest of the continent
at present.”
It is estimated that the
economies of Kenya, Tanzania
and Rwanda are set to grow by at
least 6% or more this year.
“The developments in the oil
and gas sector – where these
economies are
developing capacity
– are adding to the
economies rather
than detracting
from them, despite
the low prices.”
Bonnett said over
and above the direct attempts
to diversify and develop their
economies, the positive regulatory
changes in many East African
countries had further played a
role in the positive state of affairs.
“Positive institutional and
regulatory reform has a an
extremely positive impact
on doing business – be it
domestically or internationally.
The East African economies
have really embraced these
reforms and the result has been
stable environments that attract
investments.”
He said at the same time the
region was making a concerted
effort to work together and create
opportunities across borders
while investment
in infrastructure
ranging from ports
to roads and rail
were ongoing.
“It is probably the
most integrated of
the regions and the
most innovative in coming up with
solutions to challenges and issues,”
said Bonnett. He said Kenya in
particular had gone a long way to
engage organised business and
hear their needs.
“In Tanzania and Uganda there
are also major efforts to create
environments where business can
thrive.”
INSERT
6% The projected growth of Kenya
Tanzania and Rwanda this year.
East Africa the topperforming region
0 Comments
