Private Sector Contributes 80% to EAC Economy

Private sector’s contribution to the East African economy currently stand at about 80% in terms of wealth creation, production of goods and services and poverty alleviation, according to the EAC secretary general, Dr Richard Sezibera.

Based on this fact, he underscored the need to design a framework for collaboration and dialogue between the community secretariat, private sector, civil society organisations and other interest groups.

Addressing company CEOs from across the region in Kigali on Monday, Dr. Sezibera said dialogue between different players would ensure the integration process creates better business environment aimed at enhancing EAC competitiveness and boost economic growth.

He said in a speech, a copy of which was sent to The Citizen, that EAC has prepared a draft framework to help engage the private sector in a more robust way.

The current EAC Development Strategy postulates, among its priority areas, to include improving regional/global competitiveness for faster and sustainable economic growth and move closer to the status of the newly industrialised nations.

At the same time the strategy focussed on establishing a robust legal and administrative framework that would facilitate regional economy to generate more income and wealth.

He noted that the private sector interests were at the top of the list of priorities of the EAC Strategic Plan, whereby the Strategy identifies critical constraints to be addressed —including limited supply capacity to take advantage of the available regional preferential market access and underdeveloped regional infrastructure.

The EAC boss also disclosed that measures were being taken to conclude a Public-Private Partnership Framework for the EAC, which would go a long way to enhance private sector participation in public enterprises.

He said a study had been completed by the World Bank in consultation with EAC, which presented a “needs assessment” on the formulation of a suitable policy framework and strategy and awaits consideration and guidance by the EAC Council of Ministers.

The proposed framework will facilitate private sector participation in public enterprises with a regional dimension particularly in industrial and infrastructure projects.