Africa is now emerging as the investment destination of choice with several multinationals trying to position their branches in different countries within the region. This is largely attributed to increasing population that forms a ready market in addition to provision of cheap labor. East African development is at a much faster pace than other regions as witnessed by several findings by economic and other financial institutions like the World Bank through their periodic reports.
The community consists of five countries which are Kenya, Rwanda, Tanzania, Burundi and Uganda. The economic survey of these countries gives a picture of countries that are quickly developing in all areas be it politically, socially or economically having emerged from colonialism in just a few years ago.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many others.
Kenyan capital Nairobi city for instance has in the recent past seen many multinational firms set up their headquarters as the operation centers targeting to serve Eastern and Central Africa market. Nairobi remains the regional economic hub while Rwanda on the other hand is the fastest growing nation.
The real development in the region is best witness from the huge infrastructural projects that are being implemented. All the five member states currently have several contractors working on their roads to ensure that they meet the international standards. The expansion of the Mombasa port to accommodate larger ship is also part of these initiatives.
Full integration of East African Community umbrella that is at advanced stage is set to promote this development even further. Open border system and adoption of a single currency for trade among all the five countries will further stimulate the economic growth as such activities as cross border trade will be greatly boosted in addition to a major boost to tourism.
Insecurity and terrorist threats however continue to hinder East African development as many tourists and international investors are scared away. The insecurity is particular as a result of porous borders that the countries in this community share with the politically unstable countries like Somalia. There has been an increase in smuggling of firearms through the porous borders of these countries causing serious insecurity challenges.
Very high population growth rate on the other hand does not auger well with this development plan. It leads to increased poverty levels, joblessness and other social evils. High rate of HIV infection in this region worsen the situation as they are part of the threats to economic growth in the region.
The huge agricultural potential in this region can be used as an opportunity to solve the concerns of joblessness. This is only possible with the adoption of appropriate technology that will allow for proper utilization of natural resources like many lakes and rivers in the region in addition to fertile lands, good climate and large markets in the developed countries to push East African development to the next level.
The community consists of five countries which are Kenya, Rwanda, Tanzania, Burundi and Uganda. The economic survey of these countries gives a picture of countries that are quickly developing in all areas be it politically, socially or economically having emerged from colonialism in just a few years ago.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many others.
Kenyan capital Nairobi city for instance has in the recent past seen many multinational firms set up their headquarters as the operation centers targeting to serve Eastern and Central Africa market. Nairobi remains the regional economic hub while Rwanda on the other hand is the fastest growing nation.
The real development in the region is best witness from the huge infrastructural projects that are being implemented. All the five member states currently have several contractors working on their roads to ensure that they meet the international standards. The expansion of the Mombasa port to accommodate larger ship is also part of these initiatives.
Full integration of East African Community umbrella that is at advanced stage is set to promote this development even further. Open border system and adoption of a single currency for trade among all the five countries will further stimulate the economic growth as such activities as cross border trade will be greatly boosted in addition to a major boost to tourism.
Insecurity and terrorist threats however continue to hinder East African development as many tourists and international investors are scared away. The insecurity is particular as a result of porous borders that the countries in this community share with the politically unstable countries like Somalia. There has been an increase in smuggling of firearms through the porous borders of these countries causing serious insecurity challenges.
Very high population growth rate on the other hand does not auger well with this development plan. It leads to increased poverty levels, joblessness and other social evils. High rate of HIV infection in this region worsen the situation as they are part of the threats to economic growth in the region.
The huge agricultural potential in this region can be used as an opportunity to solve the concerns of joblessness. This is only possible with the adoption of appropriate technology that will allow for proper utilization of natural resources like many lakes and rivers in the region in addition to fertile lands, good climate and large markets in the developed countries to push East African development to the next level.
About the Author:
If you are interested in information about East African development, go to the web pages online here today. You can see details at http://www.reachafricaconsulting.com/about-east-african-markets.html now.
No comments:
Post a Comment