Planned Interventions to achieve Industrialisation Objectives

Posted in Industrialization & SME Development

The EAC Industrialisation Policy outlines measures and strategic interventions necessary for achievement of industrialisation objectives and targets in the region as follows:

Diversifying the manufacturing base and raising local value-added content of manufactured exports.

Interventions include:

1. Mapping of priority regional value chains (agro-processing, mineral processing, pharmaceuticals, iron & steel, energy & bio-fuels, petrochemicals & gas processing) and preparing investment and value addition action plans;
2. Creating / establishing a framework for public-private sector partnership for co-ordinated development of the strategic regional industries;
3. Setting up a regional enterprises (industry) promotion and award scheme to stimulate investment into priority strategic regional value chains; and
4. Setting up a centre for the development of strategic regional industries / enterprises to administer the scheme and also undertake comprehensive and innovative investment campaigns.

Strengthening national and regional institutional capabilities for industrial policy design and management

Interventions include:

1. Enhancing the technical and management competencies of national and regional institutions to design, implement and monitor industrialisation policies and related regulations effectively;
2. Conducting awareness seminars among various stakeholders including national and regional parliamentarians, NGOs, private sector leadership, policy technocrats, to ensure regional industrial development agenda is accorded priority in resource allocation;
3. Creating regional and national industrial development coordination mechanisms to facilitate synergy building between industrial development and other sectoral initiatives. At regional level, a Sectoral Council on Industrialisation will serve as the platform for setting the regional agenda for industrial development. At national level, national industrial development councils will be created to facilitate coordination of industrial development; and
4. Setting up national and regional industrial observatories for monitoring global industrial development trends and bench-marking competitiveness drivers of industrialisation relative to industrialising countries.

Strengthening Research & Development (R&D), Technology and Innovation capabilities

Interventions include:

1. Aligning science, technology and innovation infrastructure to meet the needs of industrial development in the region. This will entail a reviewing of regional innovation systems and creating instruments / incentives to enhance triple helix collaboration between universities, industry and governments;
2. Facilitation of networking among research institutions, academia and industry for best practice sharing, and building partnership for collaborative R&D, technology and innovation initiatives;
3. Supporting the establishment of Regional Centres of Excellence in Technology Transfer and Innovation;
4. Strengthening intellectual property rights (IPR) regimes as well as IPR protection infrastructure and capabilities in the region;
5. Establishing a regional industrial innovation grant and award scheme as a means to catalyse innovation efforts and support collaborative Science, Technology and Innovation initiatives; and
6. Organising regional technology conferences and exhibition to showcase latest trends in science, technology for industrial development.

Expanding trade in manufactured products through:

(i) increasing intra-regional manufacturing exports relative to total manufactured imports to at least 25% by 2032 and

(ii) increasing the share of manufactured exports relative to total merchandise exports to at least 60%

Interventions include:

1. Creating a competitive production and business environment to enhance competitiveness position of the manufactured exports. Export promotion infrastructure such as special economic zones will be developed along major economic corridors to facilitate integrated production and cross-border linkages, and attract critical mass of investment in manufacturing;
2. Developing quality assurance, product certification and traceability schemes for manufactured products to meet regional and international market requirements;
3. Fast-tracking progress in elimination of Non-Tariff Barriers and Technical Barriers to Trade that affect trade in manufactures across the borders;
4. Creating awareness on export requirements and aligning rules of origin to enhance intra-industry trade in manufactures;
5. Developing strategy to support the enhancement of packaging and branding of manufactured products within the Region;
6. Supporting the development of regional brands for manufactured products; and
7. Setup a regional export award scheme to encourage export expansion of manufactured products.

Transforming Micro Small and Medium Enterprises (MSMEs) into viable and sustainable business entities capable of contributing at least 50% of manufacturing GDP.

Interventions include:

1. Formulating a regional SME policy and charter to support coordinated development of the sector and minimise regulatory burden on the small businesses;
2. Creating an SME business portal where SMEs can show case their products and services, and also access a variety of market information such as technology services, government contracts and market opportunities;
3. Formation / strengthening of regional association of SMEs and network of intermediary organisations to facilitate sharing of best practices in SME policy promotion tools;
4. Setting up a regional web-page containing a directory of SMEs and database on various business support programmes available at regional and national level;
5. Promoting development of SME clusters and regional entrepreneurship programmes covering business plans preparation, proper maintenance and reporting of accounting and financial information, etc.;
6. Developing regional credit rating and credit information reference and referral systems for SMEs (capacity building programme for the financial institutions and SME credit providers); and
7. Developing a regional programme for the upgrading of SMEs to enable the sector take advantage of common market opportunities and integrate into regional and global value chains.