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By Carole Kariuki,
The official induction of the Democratic Republic of Congo (DRC) into the East African Community is a watershed moment for regional business owners and investors as it marks the formal rollout of a platform that will stimulate business growth, cooperation and unlimited investment opportunities.
As an investor and believer in business growth, I was proud to witness the occasion when East African heads of state formally welcome the DRC into the EAC family last Friday. I was happy because the final stage of what has been a long wait to welcome a family member was completely successfully and in the right manner.
As a fast-expanding regional market with DRC as an official member, EAC now boasts of increased diversity that will no doubt supplement increasingly profound trade with external partners and stakeholders for economic and business prosperity. With the opportunities DRC brings on board, intra-regional trade will steadily rise as businesses expand and set up supply chains across the region.
DRC is a promising market for Kenyan businesses. Over the past few years, businessmen and women looking to spread their wings to DRC have had setbacks due to the economic policies in place for non-EAC members. This significantly changes with the induction of DRC into the EAC bloc.
Equity Group has been at the forefront of ensuring the integration of DRC into the EAC bloc opens the maximum possible avenues to investment and business growth. Last year, the group partnered with the DRC government to organize a trade mission to various cities across the DRC with over 200 business local business owners getting chance to visit the Central African nation. This gave them a rare chance to conduct pilot studies on the level of opportunities available in DRC and how they can maximize on the opportunities.
Kenya-DRC trade relations are also onto a new level with local companies now showing an increased willingness to explore the DRC market. Today, Equity is the Second Largest Bank in DRC and continues expanding through strategic investment and partnerships. The expansion has supplemented existing channels to access of financial services by businesses.
At this writing, more than 26 companies had made investment commitments to DRC and have made special requests to the DRC government for support in conducting feasibility studies. The companies operate in fields ranging from manufacturing, mining, hospitality, and health; all of which have great promise in the DRC.
The ongoing Covid pandemic has made it difficult for firms to burst out of their shells and grow sustainably. The effects and disruptions in global market economies have spilled over to the region constraining business growth. The snowball effect of this has installed ceilings on economic and Gross Domestic Product Growth rates for EAC member states. Earlier projections showed a would-be negative growth for most members and, while subsequent readjustments have brought about general hope, sustainable economic recovery and growth of member states is still haunted by ghosts from a future we know so little about and a past we couldn’t fully control.
Growth of the EAC for a sustainable future will require increased aggression from business owners to tap into the available opportunities in the region. The promise of intraregional trade between member states will provide a base for EAC members to compete with advanced economies in industries including Agriculture, trade, tourism/hospitality, and manufacturing.
The World Bank estimates place the growth rate of East African countries at 3.3%. This is low, even by our standards. Investments and efforts around growth of our economies will help spur improved economic rebounding from shocks such as the Covid pandemic.
In Kenya, and in many African countries, the private sector, which is largely run by young people, is a key contributor to increased employment rates and GDP. Making it easier for the sector to thrive will assure EAC member states of sustainable economic prosperity in the coming years. As KEPSA, we are working hand in hand with corporates such as KCB, eMobilis, Moringa School Equity Bank Foundation, Equity Group Foundation and the Ministries of Education and ICT to implement the Young Africa Works Initiative in Kenya to support the government’s economic priorities and the digital economy which is key to modern economic prosperity
Beyond economic sustainability through businesses owned by the youth, rising to occupy the service provision gap and making it easier for populations to uniformly access business products and services across the region is key. Businesses should now focus on deepening ties within the region and with the rest of the world.
The promise for the entire region is there and has been made even more apparent with the coming of DRC. The horde of opportunities was unlocked when DRC was formally welcomed to the EAC bloc. Businesses now have a golden opportunity to open their wings and get set out on a regional conquest mission.
Carole Kariuki is the CEO of Kenya Private Sector Alliance. This article was first published by Business Daily, on 21st April 2022.
