Opinion
DRC gives East Africa firmer bargaining power at AfCFTA table
The
official induction of the Democratic Republic of the Congo (DRC) into the East
African Community is a watershed moment for regional business owners and
investors as it marks the formal rollout of a platform that will stimulate
business growth, cooperation, and unlimited investment opportunities.
As
an investor and believer in business growth, I was proud to witness the
occasion East African heads of State formally welcome the DRC into the EAC
family. This was the final stage of what has been a long wait to welcome a
family member in the right manner.
As a
fast-expanding regional market with DRC as an official member, EAC now boasts
increased diversity that will no doubt supplement profound trade with external
partners and stakeholders for economic and business prosperity.
With
the opportunities DRC brings on board, intra-regional trade will steadily rise
as businesses expand and set up supply chains across the region.
DRC
is a promising market for Kenyan businesses. Over the past few years,
businessmen and women looking to spread their wings to DRC have had setbacks
due to the economic policies in place for non-EAC members.
This
significantly changes with the induction of DRC into the EAC bloc and indeed
strengthen our voice in the African Continental Free Trade Area Agreement as
President Uhuru Kenyatta stated during the treaty of accession ceremony.
Equity
Group has been at the forefront of ensuring the integration of DRC into the EAC
bloc opens the maximum possible avenues to investment and business growth.
Last
year, the group partnered with the Kenya and the DRC governments to organise a
trade mission to various cities across the vast country with over 200 business
local business owners getting a chance to visit the Central African nation.
This
gave them a rare chance to conduct preliminary studies on the level of
opportunities available in the DRC and how they can maximise on them.
Kenya-DRC
trade relations are also onto a new level with local companies now showing an
increased willingness to explore the DRC market.
At
this writing, more than 26 traders and enterprises had made investment
commitments as well as special requests to the DRC government for support in
conducting feasibility studies.
The
companies operate in fields ranging from manufacturing, mining, hospitality,
real estate, and health; all of which have great promise in the market of 90
million people.
Snowball
effect
The
Covid pandemic has made it difficult for firms to burst out of their shells and
grow sustainably. The effects and disruptions in global market economies have
spilled over to the region constraining business growth.
The
snowball effect of this has installed ceilings on economic and Gross Domestic
Product Growth rates for EAC member states.
Earlier
projections showed a would-be negative growth for most members and, while
subsequent readjustments have brought about general hope, sustainable economic
recovery and growth of member States is still haunted by ghosts from a future
we know so little about and a past we couldn’t fully control.
The
growth of the EAC for a sustainable future will require increased aggression
from business owners to tap into opportunities in the region.
The
promise of intra-regional trade between member States will provide a base for
EAC members to compete with advanced economies in industries including
agriculture, trade, tourism/hospitality, and manufacturing.
The
World Bank estimates place the growth rate of East African countries at 3.3
percent. This is low, even by our standards. Investments and efforts around the
growth of our economies will help spur improved economic rebounding from shocks
such as the Covid pandemic.
Key
contributor
In
Kenya, and in many African countries, the private sector, which is largely run
by young people, is a key contributor to increased employment rates and GDP.
Making it easier for the sector to thrive will assure EAC member states of
sustainable economic prosperity in the coming years.
As
Kepsa, we are working hand in hand with corporates such as KCB, eMobilis,
Moringa School Equity Group Foundation, Equity Group Foundation and the
ministries of Education and ICT to implement the Young Africa Works Initiative
in Kenya to support the government’s economic priorities and the digital
economy which is key to modern economic prosperity.
Beyond
economic sustainability through businesses owned by the youth, rising to occupy
the service provision gap and making it easier for populations to uniformly
access business products and services across the region is key.
Businesses
should now focus on deepening ties within the region and with the rest of the
world.
The
promise for the entire region is there and has been made even more apparent
with the coming of this mineral-rich country endowed with a horde of
opportunities.
Businesses
now have a golden opportunity to open their wings and get set out on a regional
conquest mission.
Source:
www.businessdailyafrica.com