Outline of the presentation
About EABC
The relationship between Regional Integration and Investment
Why Invest in EAC
Country Profiles
Sector Profiles/ Investment Opportunities
Challenges of Investment Promotion in EAC

About EABC.
The East African Business Council (EABC) is the apex body of business association ofthe private sector in East Africa.

 Vision: Our Vision is to become an effective change agent for fostering an enabling
business environment for a diversified, competitive, export-led, integrated andsustainable economy.

 Mission: To promote Private sector’s regional and global competitiveness in Trade andInvestment.
Relationship with EAC (East African Community), the EABC enjoys Observers Status
in all relevant activities and institutions of the EAC MEMBERSHIP: Drown from all the5 EAC partner states
Membership has grown from 19 in 2004 t0 140 by 30th June 2010
Membership Comprises:
I.
Ordinary Members: Business Associations at the National level, including
manufactures &employer associations; Chambers of Commerce and national
apex bodies
II.
Associate Members : Government institutions which directly facilitate the private
sector as their clientele (e.g) Exports Promotion Boards, Investment Promotion
Agencies, National Bureaus ofStandard, Port Authorities etc.
III. Corporate Members: Individual companies in their own right and include both
multinational companies and other regional companies – Large and Medium

The relationship between
regional integration andinvestment•

Regional economic integration is essential for small and fragmented
economies to realize its full growth potential, to participate in theglobal economy and to share the benefits of an increasinglyconnected global marketplace.

•During the last fifteen years, the East Africa Community (EAC)
became one of the most integrated regional markets in Africa bylaunching the Customs Union, Common Market and the recently theMonetary Union Protocol

The relationship between regional
integration and investment•

Preferential Trade Agreements foster all kinds of investment...
• Natural resource-seeking• Market seeking
Burundi• Efficiency-seeking• Strategic asset-seeking$2.4bnUganda$17bn

EAC

Rwanda$6.2bn$95bn
Tanzania
$28bn

Kenya
$41bn

Why invest in EAC
The world’s fastest reforming region in terms of business regulation.
A fully liberalized economy without exchange or price controls.
Simplified investment procedures and one stop centre facility provided
by national investment promotion agencies;
An attractive and comprehensive package of incentives offered toinvestors.
Strong partnerships, linkages and cordial working relationships
between the government, private sector and development partners
makes the region environment for investments to thrive.
Vibrant and upcoming capital and securities market.
High level of intra regional trade and cross-border investments.

Why invest in EAC..
 Numerous investment opportunities traversing all sectors.
 A large pool of educated, trained, mobile, skilled andenterprising labour force.
 English is widely spoken. Rwanda and Burundi are bilingual(French & English).
 Insurance against non commercial risk by Multilateral
Investment Guarantee Agency (MIGA) and Africa Trade
Insurance Agency (ATIA).
 Stable political environment and high level of governance anddemocracy.
 Consumer loyalty
 Cordial hospitality and warmth of the people.
 One of the world’s leading and most successful tourism,
wildlife and safari destinationOpportunities and challenges
ahead•••The EAC It has been among the fastest growing regional blocs inAfrica in the past decade and has made much progress inharmonizing national policies in different areas: many good
regulatory practices can be found, especially in the areas of startinga business, getting credit and protecting investors.
Examples of remaining challenges: implementation of a regional “eregistry aimed at harmonizing business registration across the 5
countries: a business registration certificate from one EAC country
is not yet accepted in another; substantial delays in the issuance ofcertificates of origin, regulations are not yet fully harmonized, noconsistent application of the agreed-on standards
Only comprehensive, broad-based regional development
strategies will help in getting the priorities right and achieving theagreed-on milestones over the coming years.

COUNTRY PROFILES Burundi Vision Burundi 2025 highlights the following key sectors:– Agriculture (90% depend on it and contributes 50% to GDP)– ICT– Mining (Nickel– Tourism– Energy– Manufacturing– Financial sector

 API offers a one-stop center/shop (with three counters i.e.
Burundi Revenue Authority, Commercial/ Tribunal Court,
and Burundi Investment Promotion Agency for registering abusiness and issuing the required licenses within 24 hours
 The promulgation of a new Corporate Code reduced theprocedures from 11 to 2

Country Profiles..
 Kenya Kenya vision 2030 highlights the following six key sectors;
tourism, agriculture and livestock, wholesale and retail,manufacturing, finance, and BPO
 Kenya is among the top 5 foreign investors in the PartnerStates and coming out as number 1 in Zanzibar.
 Some of the Kenya investments in the EAC Partner States
include:– Fuel companies (Kenol Kobil),– Retail supermarket chains (Nakumatt, Tuskys and Uchumi),– Banking and financial services (Equity Bank and KCB).

 Kenya Investment Authority (KenInvest) has done a
considerable job to promote investments e.g bankableprojects are clearly documented and available on theirwebsite

Country Profiles..
 Rwanda
 Vision 2020: Agriculture, Mining, Tourism, ICT, Transport,
Energy, Construction and real estate, Manufacturing
 Key reforms continue resulting in Rwanda being ranked the3rd easiest country to do business in Sub-Saharan Africa
 The Rwanda Stock Exchange (RSE) was established in 2011
and is regulated by the Capital Markets Advisory Council.
 Rwanda’s company law makes it possible to establish a new
business in three (in practice two) days in Rwanda with only
two procedures.
 Investment offices abroad - RDB work with Rwanda’s
diplomatic missions abroad as well as dedicated investment
offices in Shenzhen-China, Quebec-Canada and Turkey tobring Rwanda’s investment opportunities to their potential
foreign investors

Country Profiles..
 Tanzania
 Vision 2025: agriculture, tourism, telecommunications,mining, fishing, forestry, manufacturing and the energyindustries
 According to World Investment Report 2011, Tanzania isamong the top 10 FDI destinations in Africa recording FDI ofover US$1billion in 2010 and 2011
 FDI expected to increase further following the recent Chineseand American presidents’ visits, according to TIC 2012
 Opportunities for private investors are abundant Zanzibar
 Vision2020:
FishingandAgriculture,Tourism,Manufacturing, Trade, Energy & Infrastructure Zanzibar was set the minimal capital requirement for hotels
at US$ 2.5m

Country Profiles..
 Uganda
 Vision 2040:– Agriculture,– Tourism,– Manufacturing,– ICT,– Infrastructure There are major interests in oil and gas(Investments in oil pipelines and refinery) A presidential investors’ round table (PIRT) is inplace and is chaired by the President to ensurethat the investors’ interests are catered for andany constraints handled.

Sector Profiles (investmentopportunities) Agriculture:• provides a livelihood to about 75% of
the population and accounts for about
28% to the GDP of the EAC.
• Investment opportunities
Agro processing
Horticulture/Floriculture
Commercial/Mechanized farmingLivestockFisheriesInvestment Opportunities
 Tourism Tourism is key in all the EAC Partner States
given the heritage, flora & fauna and excellent
weather throughout the year.
• Investment opportunities
 Development of resort cities and construction ofhotels
 Conference facilities
 Entertainment facilities – theaters, clubs, casinos Film industry
 Culture tourism
 Exhibition gallaries

Investment Opportunities Infrastructure is seen as key in all thePartner States given its ability to facilitate all
the other sectors in terms of transportationand energy among others• Investment opportunities Hydropower and other energy developments
 Manufacture of transformers
 Renewable energy (Solar, Wind, nuclear,geothermal)
 Transport – roads, railways, airports, ports
 ICT – Data centers, digital villages, telecoms
 Information Management systems

Investment Opportunities Manufacturing
 is viewed by all the EAC Partner States as apotential for considerably contributing to job
creation as well as import substitution• Investment opportunities
 Cement Industry and other building materials
 Motor vehicle components manufacturing
 Iron and steel industry
 Medical equipment
 Pharmaceutical plants

Investment Opportunities
Services sector has been growing
strongly, particularly because of theincrease in the tourism, construction,and ICT sectors.
The services sector is a major
employer in the EAC region.
• Investment opportunities
Banking and other financial servicesInsurance

Investment Opportunities
Extractive industries which ismajorly mining has vast potential in
the region given the abundant natural
resources including various minerals .
• Investment opportunities
Establishment of large scale mines
Processing of ores
Gold refineries
Gemstone cutting and polishingJewelry manufacturing

EAC “ONE MARKET ONEINVESTMENT DESTINATION”