The East African Community (EAC) bloc should reduce energy and transport costs in order to compete effectively in the global market; it was announced here on Thursday.
EAC secretary general, Dr Richard Sezibera, said goods from China and other countries subjected those produced locally to stiff competition due to the fact that production costs in the Asian country were relatively cheaper.
Dr Sezibera, who was speaking during a luncheon organised by the Uganda Manufacturing Association (Uma), said although manufacturing offered a wide range of opportunities in the bloc, production costs made locally made goods expensive.
“The EAC Heads of State have always expressed commitment to the development of the sector through micro, small and medium sized enterprises, but nothing tangible has been done to attain that goal,” he pointed out.
According to the EAC Facts and Figures 2012, the share of the manufacturing sector to GDP registered marginal changes in 2011.
Burundi registered the highest share of 13.4 % up from 12.8% the previous year followed by Tanzania 9.3% up from 9.0% in the previous year.
The EAC boss added that Uganda registered 8.5% up from 7.6% in 2010, and Rwanda 6.6 % down from 7.0% in 2010 while Kenya registered 9.4%, down from 9.9% in 2010.
“For manufacturing sector to prosper, there is need for stakeholders, including the government and private sector, to work together in an effort to give domestic industries a new lease of life,” he said.
Dr Sezibera called upon local manufacturers to take advantage of several opportunities popping up as EAC integrates deeper, especially in areas that include pharmaceuticals, beverage production, vehicle spare-parts production and assembling.
‘’I am happy to report that several projects aimed at building a reliable transport and power supply capacity across the region are underway.
I am also glad to inform you that the EAC has a Pharmaceutical Manufacturing Plan of Action, 2012-2016 which guides Partner States towards evolving an efficient and effective pharmaceutical manufacturing industry,” he said.
He acknowledged the challenges pertaining to the manufacturing sector and called for more efforts to overcome them.
The EAC chief noted that bloc’s Partner States were expected to come up with strategies for formalising the inter-agency approach at the regional level in order to establish a legal and regulatory framework for protection of intellectual property rights and elimination of counterfeit products.