Business and Economic News By Leo Odera Omolo In Kisumu City

Delegates at the recently concluded investor’s conference in Dar Es Salaam were told that trade volumes in the region have increased tremendously since the establishment of the East African Customs Union Protocol in January 1st 2005.

Uganda’s First Deputy Prime Minister Eriya Kategaya, who is also his country’s Minister for East African Community Affairs, said the region has witnessed improved revenue collections, intra-trade and Foreign Direct Investment, contrary to the initial expectations.

Kategaya said Kenya’s revenue collection swelled from USD 2,511.9 million in 2007 ad 2008 to USD 6,538.3 million in 2007 and 2008 while Uganda’s rose from USD 300 to USD 650 million during the same period of time.

Tanzania’s tax revenue has been at an average of 35.9 per cent per annum from 2005 and 2006 to 2007 and 2008 compared to 23.3 per cent attained between 2003 and 2004 and 2004 and 2005.

The Minister said the most rewarding achievements has been in the intra-trade. Uganda’s volume of trade for instance, increased by 87.9 per cent to usd947.o million in 2008 from USD 504.0 million in 2004.

Tanzania’s trade volume increased by 65.3 per cent to USD465.0 million from USD 281.3 million in the same period under review.

Kenya’s trade volume swelled by 91.6 per cent to USD 1,395.o million from USD 741.o million.

FDI to the region almost tripled from USD 692 million in 2002 TO USD 1.8 billion in 2008 with Uganda and Tanzania receiving the largest proportions.

Thus has augmented FDI stock in the region to USD 13.2 billion, the Minister explained.

The chairperson of the EAC Council of Ministers Dr. Diodorus Kamala of Tanzania, said development of infrastructure is crucial for stimulating investments in many parts of the region whose potential is yet to be exploited.

Dr Kamala said in order to unlock the region’s potential, there was a need for EAC members states of Tanzania, Kenya, Uganda, Rwanda and Burundi to invest in infrastructure development through public-private partnership.

The Secretary General of the East African Community Ambassador Juma V Mwapachu commended the work being undertaken by the region’s Investment Promotion Agencies. He said the body was not only promoting national investment agendas, but also branding the region as a preferable investment destination.

Mwaachu reaffirmed that the coming into force of the Common Market from July ,1st 2010,would usher in new opportunities which local entrepreneurs need to exploit.

The EA trading bloc has a combined of USD 73 billion and average GDP per capita of USD 506.

Ends

leooderaomolo@yahoo.com