As part of the technical assistance to this initiative, the World Bank Group’s Trade and Competitiveness Global Practice is using the latest data and technology to assist TMEA in identifying a number of growth poles in the region - geographic locations where productive economic activities can rapidly expand. Combining the initial findings from the World Bank study with analysis of East African governments’ national vision and investment authority documents, a number of priority sectors and industrial locations have been identified that will form the primary focus of the Compact. The priority industries identified include manufacturing, roads and infrastructure, logistics, tourism, agriculture and agribusiness and textiles and garments, and are illustrated geographically on the map below. While determined to improve the business, trade and investment environment in the EAC in general, the Compact will particularly focus on these priority industries that provide the greatest potential for growth, job creation and poverty reduction. The Compact work will be further complemented by TMEA’s work in Phase 2, with a focus on strategic investment in transport and logistics that can help crowd-in private sector investment in the priority industries outlined below.
While focused on promoting the economic potential of the region as a whole, the Compact recognises that barriers to trade and investment often exist at the national level and even barriers that can be resolved at the regional level require national political buy-in and commitment to reforms. As a result, the Compact will focus its engagement on national public and private sector institutions within a coherent regional umbrella. A number of initiatives and organisations already exist both in the region and the five EAC Member States that aim at stimulating public-private sector dialogue. Rather than duplicating efforts, the Compact will leverage their existing efforts to convene the Compact stakeholders around a common agenda highlighting policy changes required for increased trade, investment and job creation in East Africa. The Compact will be anchored nationally within the lead apex business organisation who will ensure sustainability and stakeholder ownership of the Compact, while creating a robust mechanism for following up and monitoring Compact commitments. It will also provide an opportunity to revitalize and build on some of the public-private dialogue mechanisms already in place in each country and regionally.
Beyond working at the national level the Compact will engage a diverse group of partners, particularly East African, European, American and Asian business membership organisations to facilitate engagement with regional and global private sector. A number of initiatives bringing government and businesses together are already planned for this year and rather than creating overlap the Compact will be able to engage with these with support from its partners.
