EAC launches new initiative for sustainable manufacturing growth

The East African Business Council (EABC) and the African Development Bank (AfDB) have together unveiled a major initiative aimed at accelerating sustainable and inclusive industrialization across the East African Community (EAC). The project, launched in Arusha Nov. 6–7, focuses on enhancing regional manufacturing competitiveness and boosting value-addition in three priority chains: edible oils, textiles and leather.

Adrian Raphael Njau, EABC’s acting executive director, said the initiative will “harmonize regional trade instruments, promote value addition in priority value chains, enhance export competitiveness and attract investment.” He added that it is expected “to increase the manufacturing sector’s contribution to GDP and create job opportunities for youth.”

Gerald Ajumbo, Trade Facilitation Officer at AfDB, praised EABC’s leadership and reaffirmed AfDB’s commitment to strengthening regional integration. “The launch provides an important platform for alignment on project monitoring, evaluation and implementation,” he said, noting that technical sessions during the launch addressed disbursement, financial management and procurement compliance.

The EAC region has long prioritised industrial development, but its manufacturing sector remains under-realised. According to the EAC’s 2017 Industrial Competitiveness Report, the manufacturing contribution to GDP was reportedly as low as around 10 percent, and the region needs concerted efforts to translate policies into operational outcomes. Economic experts say that despite strong growth rates in member states, structural transformation through manufacturing remains a major challenge.

The project aligns with EABC’s mission to foster a conducive business environment and privately-driven growth, as well as AfDB’s Ten-Year Strategy (2024–2033) and the “Integrate Africa” High 5 vision, both aiming to scale up industrialisation across Africa.

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