COMPENDIUM OF PUBLIC INFORMATION ON THE 2ND EAC INVESTMENT CONFERENCE
Kenyatta International Conference Centre, Nairobi, Kenya 29th – 31st July 2009
I. PRESS RELEASE
2nd EAC Investment Conference, Kenyatta International Conference Centre, Nairobi, Kenya
29th- 31st July 2009
The 2nd EAC Investment Conference will be held at the Kenyatta International Conference Centre in Nairobi, Kenya from 29 to 31 July 2009. The Conference is organized by the EAC Secretariat in collaboration with the government of Kenya, the African Business Council and the Investment Promotion Agencies (IPAs) of the East African Community Partner States.
The EAC Investment Conference is an annual event held in rotation in the EAC Partner States since the inaugural one that was held in Kigali, Rwanda in June 2008. It is the premier forum for the EAC and the Partner States to promote the region as a single market and investment area.
The 2nd EAC Investment Conference is expected to bring together policy makers, business leaders and the regional and international investment community to review the investment outlook of the EAC region and discuss investment opportunities.
Rationale and theme for the Investment Conference
The 2nd EAC Investment Conference comes at a time when the EAC countries have moved closer to the establishment of the EAC Common Market and are involved in other initiatives to consolidate the regional integration process. The process of regional Integration in the East African Community is intensifying and the five Partner States of Kenya, Uganda, Tanzania, Rwanda and Burundi are determined to marshal their resources, capacity and political will to create one Community, and more importantly, a vibrant trade and investment hub.
The Investment Conference also comes at a time when the global economy is undergoing a major downturn. Giants of the business world are going into recession and turning to governments for bailouts or stimulus packages. In the face of these challenges, the EAC is maintaining a strategic posture towards stronger political and economic business environments to weather the storm. Indeed, the EAC countries remain on a rapid growth path and, with a number of other African countries, are in the middle of the strongest economic recovery in the past 40 years.
As more and more international businesses turn to this region with a curiosity to test the investment opportunities in East Africa, a stronger and more vibrant investments and trade platform is emerging . It is clear that through strengthening relations with the leading industrialized countries as well as forging partnerships with the Emerging markets such as China and India amongst others, the EAC region can quickly move into a more flexible business arena, open to cross-border trade and investment as well increased competitiveness with the international market.
The EAC region’s share of Agricultural exports in the international markets is set to grow. With the heightened increase in global food prices, there is increased demand for investment in agricultural development in East Africa. The aim is to make East Africa not only a self-sufficient food production region, but also a supplier to Sub-Saharan Africa and an international net exporter. Opportunities also abound in other areas such as tourism, infrastructure, ICT, Financial services, telecommunications and energy show rapid growth and development.
It is with these considerations that the 2nd EAC Investment Conference has been organized under the theme, Invest in East Africa Where Challenges are Opportunities. The 2nd EAC Investment Conference is thus structured to provide the investor community with the opportunity to critically survey potential areas of investment through the various platforms in:
Public –Private Dialogue with the Five Heads of State-Kenya, Rwanda, Uganda, Burundi and Tanzania, where policy and advocacy issues will be extensively discussed and the concept of regional and international competitiveness will be re-instated as the way forward for East African businesses.
Sector/issue- specific Round Table discussions with the top businesses in East Africa, regional, emerging and international business markets and the world’s leading economists, where potential investors will be able to meet ideal business contacts and make partnerships that will not only enhance existing businesses, but also open a new door to stronger and more successful returns on investments; and
Further, the dates for the EAC Investment Conference were carefully chosen to just precede the AGOA Economic Forum which will be held at the same venue just two days after the EAC Investment Conference.
A record number of participants, estimated at over 2000, are expected at the Conference, representing key regional and international trade and investments actors. Over 30 countries are expected to participate in the Investment Conference with the republic of India participating as a platinum partner. EAC and the government of India have an existing collaboration agreement where trade and investment are key features. The EAC and Kenya Government have approached leading East African corporates to sponsor various programmes and activities of the Conference. Among the targeted audience and participants of the Investment Conference are:-
Regional entrepreneurs and potential investors
Regional producers looking for new markets
Regional domestic businesses.
Regional Government Officials
Regional Industrialists and Merchandise Traders
Representative of Multinational Corporations
Commercial and Development Bankers
Infrastructure Specialists and businesses
Regional and international Businesses- Energy, Mining, Tourism, Telecommunications, Agriculture.
National and International Business Development Consultants and specialists.
Business communities from the emerging markets- India, South Korea, Japan, Indonesia, Singapore and others.
Representatives of regional IPA and chambers of commerce and Industry
Expected outcomes/benefits to participants
Among the expected outcomes and benefits of the Investment Conference are:
Opportunity to showcase the potential and profitable investment opportunities that the EAC has to offer;
Opportunity to network with local and foreign participants so as to build bridges for greater business using EAC as critical launch pad in the region;
Opportunity to engage potential investors in the EAC in business promotion within the region
Opportunity to project the image of EAC as one market and one destination ideal for investment; and
Opportunity to sensitize the world on the latest strides made in advancing the economic integration front at the East Africa Community
Conference focus and format
The Conference sessions will have a focus on major areas, topical issues and sectors of growth opportunity in banking and finance, manufacturing, agriculture and agro-processing, ICT, tourism and other hospitality industries; infrastructure and energy, especially hydro, geothermal, methane and natural gas; roads and railways.
The Conference will proceed on plenary sessions, panel discussions, debates, and live on stage interviews with leading authorities in the key issues..
Among the major topics to be discussed is the investment environment, addressing the challenges of the global liquidity and credit crunch, corporate finance in challenging conditions; achieving regional competitiveness, fighting counterfeits, investing in food security and exports through improved agricultural practices, and achievements of the EAC economic integration agenda.
Exhibition and Networking
An international exhibition of products and services will run parallel to the plenary sessions at the Kenyatta International Conference Centre –KICC (the venue of the conference). EAC Partner States and other country delegates will exhibit their products and services showcasing priority sectors. The last day of the Conference (31st July 2009) will be devoted to networking opportunities and country tours which have been carefully programmed to just precede the AGOA Economic Forum which the Country is also hosting at the same venue just two days after the conference ends.
The 2nd EAC Investment Conference follows the first one which was held in Kigali, Rwanda in June 2008. It was at the Kigali Conference that the EAC Investment Conference Forum was launched as an annual event to be held on rotation in the EAC capitals.
The inaugural event was itself very successful. The Kigali Conference was attended by all the five EAC Heads of State. It brought together over 1200 participants from the region and the international community. It attracted 15 countries from outside the region. A lot of business was transacted during the conference and important business contacts were made. Reports from the national IPAs indicate that a sizeable number of projects have been registered arising from the 1st EAC Investment Conference.
The 2nd EAC Investment Conference is therefore being held against the favourable background of the encouraging success and achievement of the inaugural Conference. It has incorporated vast improvements in terms of its organization, and expected levels of participation and impact.
II. INVESTMENTS PROMOTION IN EAC
Institutional arrangements in investment promotion for the region
The EAC Partner States have established statutory agencies that promote and facilitate investments in the region. The agencies are Investment Authority (KenInvest), Tanzania Investment Centre (TIC) o, Zanzibar Investment Promotion Authority (ZIPA), Uganda Investment Authority (UIA), and the Rwanda Development Board (RDB). In Burundi, investment activities are coordinated by the National Investment Commission under the Ministry of Planning. Currently, Burundi is in the process of establishing an Investment Promotion Agency which is expected to be operational in 2009. These investment promotion agencies (IPAs) were established by respective Acts of Parliament in each Partner State and follow similar basic requirements for promotion of investments.
Role of investment promotional agencies
The role of the IPAs of the Partner States is to promote and facilitate investment activities. Facilitation is carried out by providing a set of incentives as provided for in the countries’ respective investment codes. The incentives provided range from waiver of customs duties and VAT on imported capital goods related to the submitted investment proposals, the facilitation for obtaining of administrative formalities to corporate taxes reduction.
Investment policy harmonization framework
Since the re-launching of the EAC and the setting up of the EAC Secretariat, harmonization of investment policies, incentives and laws of the Partner States has been going on under the auspices of the EAC Secretariat. Some aspects have been harmonized and include investment approval requirements, export processing zones and free zones regulations, corporation tax and other incentives.
However, there still exist some variations on the minimum capital threshold requirement among the Partner States. For instance, in Kenya, the minimum threshold is US$100,000 for foreign investors and US$12,800 for domestic investor. For Tanzania the minimum threshold is US$300,000 for foreign investors and US$100,000 for domestic investors; while in Uganda the minimum threshold is US$100,000 for foreign investors and US$50,000 for domestic investors.
On the other hand, Zanzibar maintains a different approach that focuses on sectoral thresholds for investment capital per project. For example, investment in hotels requires a minimum of capital US$4 million for foreign investors and US$300,000 for local investors. In Rwanda, the minimum threshold for foreign investors is US$250,000 while for local and COMESA investors it is US$100,000. These and other variations related to offered incentives are being identified and further harmonized to bring about a more favourable investment climate in the EAC region.
Key policy leap among IPAs: The One Stop Shop (OSS)
Since 2001, most EAC countries have established and implemented the One Stop Centre concept which consists of providing almost all needed facilitation under one roof. The One Stop Shop Concept is an investment facilitation strategy where relevant government agencies are brought to one location, coordinated and streamlined to provide prompt, efficient and transparent services to investors. It is aimed at simplifying and shortening of procedures and guidelines for issuance of business approvals, permits and authorizations thereby removing bottlenecks faced by investors in establishing and running businesses. The One Stop Shop concept is based on four principles namely: Convenience, Efficiency, Simplicity, Speed and Transparency.
The type of services offered under One Stop Shop include: business incorporation and registration; instant granting of approvals in principles, permits and licenses; provision of investment information. The One Stop Shop concept is good for both the investor and the government in that it:
? Substantially reduces the cost of doing business.
? Ensures that FDI, DDI are properly tracked.
? Ensures close and professional working relationship among
government agencies to meet the needs of investors.
? Triggers and fast tracks public sector reform which would
ultimately result in structurally more attractive investment
III. PRESS NOTICE
THE 2ND EAST AFRICAN INVESTMENT CONFERENCE, KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI, KENYA, 29TH – 31ST JULY 2009
The East African Community Secretariat in collaboration with the Regional Investment Promotion Agencies (IPAs) and the East African Business Council is organizing the 2nd edition of the East African Investment Conference, scheduled to take place at the Kenyatta International Conference, Nairobi from 29th to 31st July 2009. The 2nd EAC Investment Conference is designed to showcase the economic potentials and opportunities of the East African region under the theme, “Invest in the EAC: Where Challenges are Opportunities”.
The Investment Conference will feature High Level presentations and panel discussions by leading regional and international trade and investment actors, policy makers, experts and business leaders, focusing on investment opportunities across the following key sectors: Mining, Infrastructure development, roads and railways; Telecommunications, Leather goods production, Energy (hydro, geothermal, methane and natural gas); Tourism, ICT, Banking and Financial Services, Manufacturing, Agriculture and Agro-processing
Participants, key business organizations and entrepreneurs, are also encouraged to take the opportunities for exhibiting their products and services at an international exhibition that will run parallel to the plenary sessions of the Conference. The last day of the Conference (31st July) will be devoted to networking opportunities.
For more information on the 2nd East African Investment Conference, please visit the Website, http://www.eac.int/invest . Participants are requested to confirm their participation electronically by filling a registration form available at the Website, sending a fax, phone and/or register their participation (for those in East Africa) to the Investment Promotion Agencies/Authorities in the respective EAC countries, Burundi, Kenya, Rwanda, Tanzania and Uganda. It would be appreciated if confirmations of participation are received by latest 20th July, 2009.
Deputy Chief Executive Officer
In-charge of Business Operations and Services
Rwanda Development Board
P.O. Box 6239
Ms. Maggie Kigozi
Uganda Investment Authority (UIA)
The Investment Centre
Plot 22B, Lumumba Avenue, TWED Plaza
P.O. Box 7418
Mr. Emmanuel Ole Naiko
Tanzania Investment Centre (TIC)
Shaaban Robert Street
P.O. Box 938
Dar es Salaam
Ms. Susan Kikwai
Kenya Investment Authority (KenInvest)
Kenya Railways Headquarters
P.O. Box 55704-00200
Mr Toussaint Nkurunziza
Chamber De Commerce et de L’industrie du Burundi
Tel: + 257 22222280/ 257 79492323
Mr. Salum K. Nassor
Zanzibar Investment Promotion Agency (ZIPA)
P.O. Box 2286
Mr. Alloys Mutabingwa
Deputy Secretary General
(Planning and Infrastructure)
East African Community
P.O. Box 1096
Tel: +255 27 2504253 -8
Fax: +255 27 2504253
Mr. Charles Mbogori
East African Business Council
P.O. Box 2617
Tel: + 255 788790711
Fax: + 255 27 2509997
IV. MESSAGE BY THE SECRETARY GENERAL OF THE EAST AFRICAN COMMUNITY AMB. JUMA MWAPACHU
The 2nd East African Investment Conference comes at a historic time for the East African Community when we are closer than ever to our goal of regional economic integration. The success of the Customs Union is a singular pointer to the systematic achievement and progress of the EAC integration process. Between 2004 and 2007, the volume of intra-EAC trade increased by 22% while the total EAC trade with the rest of the world rose by 26.8 % up from 22.8% in 2006.
In January 2010, the fully fledged Customs Union comes into effect with zero customs duty applicable to all goods traded among the EAC Partner States. This is a significant milestone in the road to EAC integration and will greatly impact trade, investments and revenues of the Partner states.
Last June, during the 1st East African Investment Conference in Kigali, the EAC Heads of State adopted strategic plans for accelerated implementation of projects under the infrastructure sector. The result was the commencement of construction works on the Arusha-Namanga-Athi River road project; the commencement of the Power Interconnection Project between Kenya and Tanzania at the Namanga border point and many other similar achievements in rail transport, civil aviation, communications, energy and development of the Lake Victoria Basin.
In addition, regarding barriers to trade and investment in the region, the EAC is working with the Partner States to strengthen the capacity building of their governments, improve the transparency of regulation and administration. EAC has actively worked to promote the implementation of the Protocol for the establishment of the EAC Common Market, which will create an economic bloc that will have a combined population of 125 million people and a total gross domestic product of 55 billion US dollars.
Though the 2nd EAC Investment Conference comes at a time of a global financial and economic crisis whose effects have been felt not only in the Northern hemisphere but also here in the EAC region and other parts of Africa, the Conference will provide an opportunity to showcase the commitment and achievements of the Community as well as the potential it has to nurture and serve as a new hub of regional global trade and investments.
It is in this framework that we look forward to the successful 2nd East African Investment Conference which is being held under the appropriate theme , Invest in East Africa, Where Global Challenges are Opportunities. Among others, the Conference will focus its attention on creating a viable and vibrant regional economic bloc, and also addressing Non Tariff Barriers (NTBs) under the rubrics of entrenching a conducive investment climate.
The efforts of many individuals and institutions have gone into the realization of the Investment Conference and I thank them all for this major contribution which will promote our region as we step into a new era of greater competitiveness and achievement. In particular, I thank the government and people of Kenya for the warm welcome and hospitality extended to the delegates who will be attending the Conference from all parts of the world.
V. EAC REACHES OUT AS NEW HUB OF GLOBAL TRADE AND INVESTMENT OPPORTUNITIES
– Major EA Investment Conference to be held in Nairobi, Kenya, 29th -31st July 2009 –
The East African Community (EAC) is planning a major re-launch of its position in the global markets with an international investment conference that will be held in Nairobi on 29th – 31st July. Key to the event is the leveraging later this month of a regional bloc of 120 million people and a combined GDP of $ 57 billion, into a vibrant market and a new hub of global trade and investment opportunities.
The 2nd EAC Investment Conference, organized by the EAC Secretariat in collaboration with the East African Business Council and the Investment Promotion Agencies of the EAC Partner States is expected to have an attendance of over 2000, representing key regional and international trade and investments actors, policy makers, business leaders, to review the investment outlook of the EAC region and discuss investment opportunities.
The Investment Conference will focus on major areas and key sectors of growth opportunity in banking and finance, manufacturing, agriculture and agro-processing, ICT, tourism and other hospitality industries; infrastructure and energy, especially hydro, geothermal, methane and natural gas; roads and railways. The Conference will feature plenary sessions and panel discussions as well as an international exhibition of products and services that will run parallel to the plenary sessions.
The EAC Investment Conference is an annual event that is held in rotation in the EAC Partner States since the inaugural one that was held in Kigali, Rwanda in June 2008. It is the premier forum for the EAC and the Partner States to promote the region as a single market and investment area. The inaugural event was successful, attended by all the five EAC Heads of State and brought together over 1200 participants from the region and the international community, attracting 15 countries from outside the region.
The 2nd EAC Investment Conference is therefore being held against the favourable background of the encouraging success and achievement of the inaugural Conference. It has incorporated vast improvements in terms of its organization, and expected levels of participation and impact. The EAC Secretary General, Ambassador Juma Mwapachu, has said the Investment Conference will project “a renewed determination to move the EAC region from a largely agriculture and primary produce economy to an industrial based economy and status of a middle income economy”.
With its theme, Invest in the EAC: Where Challenges are Opportunities, the 2nd EAC Investment Conference comes at a time when the global economy is experiencing a downturn unprecedented since the 1930s. It also happens that the Investment Conference is coming at a time when the EAC countries, along with a number of other African countries, are experiencing their strongest economic recovery since the 1980s.
The IMF predicts an overall 1.3% decline in global economic activity in 2010 particularly of the economies of the industrialized countries, while some of the EAC countries, and a number of African countries are projected to grow by between 5% and 7%. It is indeed a rare moment as they come in global development trends, however into the scenario, the EAC is determined to stake a claim and foster a strong economy and competitive business environment.
EAC is buoyed by the great interest and positive appreciation it is attracting among an international trade and investment community that is turning to East Africa where they perceive that a new, vibrant investments and trade platform is emerging. In August 2006, just over one year after the launch of the EAC Customs Union in January 2005, the EU delegation at the WTO meeting in Geneva declared that the EAC was “the most successful illustration of regional integration on the African continent”.
From Customs Union to Common Market
In its 5th year of implementation, the EAC Customs Union has realized a great stimulus on the region’s trade, investments and revenue earnings. On 1st July this year, Rwanda and Burundi, the new entrants, in 2007, into the EAC, acceded to the Customs Union. A few months to go, on 1st January 2010, the Customs Union will reach its threshold when goods imported from Kenya by other EAC Partner States will start attracting zero customs duty; and a fully fledged EAC Customs Union will spring forth.
The countdown to the full fledged EAC Customs Union has been systematic and fast paced, featuring mainly the phase down to zero tariff for Kenyan exports, elimination of non tariff barriers, strengthening the institutional framework for the Customs Union and promoting investment flows.
EAC joint trade negotiation
Already, EAC has put in place an export promotion strategy and the EAC Competition Act came into operation last February. In April 2008, the EAC launched the negotiations for the Common Market protocol and contrary to earlier fears that they would be bogged down or finally scuttled, the negotiations of the Common Market Protocol proceeded smoothly and swiftly. The stage is now set for finalization and signing of the Protocol in November 2009. The enactment of the EAC Trade Negotiations Act in 2008 came as a major breakthrough and boost to the EAC Partner States’ longstanding search for agreement to negotiate as a bloc in the multilateral trade fora.
In November 2007, EAC initialed the EAC-EU Framework Economic Partnership Agreement (FEPA). The negotiations of the economic partnership agreement (EPA) with the European Union (EU) are progressing well with the EAC negotiating as a bloc. EAC’s participation at the forefront of the Tripartite EAC-COMESA-SADC Arrangement that seeks to establish a larger Free Trade Area and later Customs Union of 26 African countries, stretching from Cape Town to Cairo, has followed the same pattern of the EAC’s growing confidence in trade expansion.
With this confidence and determination, during 2008/2009, EAC held or participated in a record number of major investments and trade promotion events. These included the small to medium scale industries in Kigali, the EAC Investment Conference in London, the 4th EAC Petroleum Conference in Mombasa, the EAC investment promotion in Canada and the 1st EAC/EABC Energy Conference in Dar es Salaam as well as the Berlin International Tourism Fair (ITB) and the London World Travel Market (WTM).
The EAC economy prides itself of a strategic central location and link to the wider eastern and central African market, encompassing the Great Lakes Region, including the vast Democratic Republic of Congo and South Sudan. This provides the region with a great growth and expansion potential with vast natural resources and great potential to transform into an area and space of peace, stability, economic opportunity and prosperity.
Based on this realization, EAC has steered a steady course to broaden its world outreach and outlook. Since concluding a Trade and Investment Framework Agreement (TIFA) with the USA in August 2008, EAC has stepped up the search for similar focused trade and investment arrangements with other strategic partners in the world markets, including India, China, Eastern Europe, Far East and Latin America.
Focus on infrastructure
Together with the trade promotion activities, EAC has focused on regional infrastructure development with a determination to get a number of regional infrastructure projects off the ground. Breakthroughs have been made in the implementation of the East African Road Network Project with the upgrading of the Arusha-Namanga- Athi River road, a vital regional link, which commenced in July 2008 and is expected to be completed in 2011.
Similar developments and breakthroughs were realized in the railways sub-sector. Although the concessions for the central railway line of Tanzania and the Kenya-Uganda Railway have faced challenges, the EAC Partner States are actively pursuing the implementation of the East African Railways Development Master Plan. The stage is now set for the development of the feasibility studies and preparations are underfoot for holding an East African Railways Investors’ Conference in the last quarter of 2009. The EAC Partner States have made substantial provisions for expenditures on the development of railways and other regional projects in their budgets of the current financial year.
Other developments in regional infrastructure development include ongoing harmonization of civil aviation safety and security regulations in the EAC under the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA). In the area of communications, The East African Marine System (TEAMS) and the East African Sub Marine Cable System (EASSy), both projects being private sector-led are on course. The TEAMs Project is expected to be in service by end of 2009, while the EASSy network is expected to be ready for commercial service in 2010.
Conclusion towards food security and energy self sufficiency
To complete the picture of a region that has set its sights on a major turn round, the EAC has prioritized programmes in agriculture and food security; and the East African Power Master Plan under the current EAC Development Strategy (2006-2010).
The implementation of the EAC Agricultural and Rural Development Strategy will be launched this year. Agriculture is an area in which the EAC countries have significant comparative advantage and offers great scope for investments in food production to meet both domestic and export demand. The East African Power Master Plan, on the other hand, envisages energy sufficiency to support increased productivity and industrial development; and is a major underpinning of investments promotion in the region.
DIRECTORATE OF CORPORATE COMMUNICATIONS
– – –
from Leo Odera Omolo Jul 21
date Jul 21, 2009 7:17 AM
subject Fw: RE: COMPENDIUM OF PUBLIC INFORMATION ON 2ND EAC INVESTMENT CONFERENCE