The 1st Manufacturing Business Summit held at Speke Resort, Munyonyo in Kampala, Uganda

Written on 12 January 2016. Posted in Press Release

The Kampala Resolutions on Manufacturing

1. The 1st Manufacturing Business Summit was held in Kampala, Uganda at Speke Resort, Munyonyo on 1-2 September 2015. The Business Summit was officially opened by Rt Hon. Dr Ruhakana Rugunda, the Prime Minister of the Republic of Uganda.
2. The Summit was attended by H.E. Dr Mukhisa Kituyi, UNCTAD Secretary-General; Amb. Richard Sezibera, EAC Secretary-General; Hon. Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives, Uganda; Hon. Adan Mohamed, Cabinet Secretary for Industrialisation and Enterprise Development, Kenya; Hon. Tabu Abdallah Manirakiza, Minister for Finance, Burundi; Hon. Adam Kighoma Ali Malima, Assistant Minister for Finance, United Republic of Tanzania, Dr Joseph Mungarulire, representing the Minister for Trade and Industry, Rwanda; Mr Dennis Karera, East Africa Business Council (EABC) Chairman; and, Amos Nzeyi, UMA Chairman. The Summit was also attended by representatives from development partners and regional economic communities including: United Nations Industrial Development Organization, African Development Bank, Commonwealth Business Council, United Nations Economic Commission for Africa, African Minerals Development Centre, World Bank, TradeMark East Africa, Deutsche Gesellschaft für Internationale Zusammenarbeit, Physikalisch-Technische Bundesanstalt, Common Market for Eastern and Southern Africa, and South African Development Community.
3. The 1st Manufacturing Business Summit was jointly organised by East African Community Secretariat and EABC, and hosted by the Government of Uganda. The forum ushered in a new dawn in the history of manufacturing in East Africa region as it brought together for the first time all shareholders in manufacturing under one roof to discuss the question of manufacturing and its role in deepening the integration.
4. The forum made the following resolutions on this date of 2nd September 2015:
   1. To effectively utilise the available resources within the region for structural transformation of the manufacturing sector in key value chains, a regional special purpose vehicle that facilitates joint investment in capital intensive and flagship projects should be established (lessons can be drawn from Maputo Development Corridor, or Air-bus Project in the European Union). The framework should outline each countries comparative and competitive strengths in resources and inputs, and how EAC countries can collaborate and develop such strategic industries to avoid harmful competition and trade frictions.
   2. Public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology-based business start-ups. To this end, the governments of East Africa Partner States and the private sector are called upon to prioritise in their procurement, the sourcing of locally manufactured products including agro-food, furniture, motor-vehicles, parts, apparel and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy East Africa, Build East Africa scheme.
   3. For the purposes of resolution No. 2, the EAC should formulate a regional Local Content policy, which clearly defines ‘local’ on a regional context to ensure that preferential treatment accorded to nationals are extended to all suppliers within the East Africa region.
   4. The EAC to formulate a regional policy for motor vehicles, textiles & apparel, and leather & footwear to create a coherent policy regime for the development of these sectors, which are crucial for employment creation, poverty reduction and advancement in technological capability.
   5. Acquiring appropriate skills suited to the needs of industry remains a major challenge contributing to youth unemployment. EAC in collaboration with EABC to a formulate a regional skill development and partnership programme targeting mainstreaming of apprenticeship, internship and graduate on-job training in school, technical and vocational education and training, and university curriculum.
   6. Energy (power) is a vital input into manufacturing constituting between 20-50 percent of the cost of production. The East Africa Partner States are called upon to take measures to reduce the cost of power to through: reforms in the energy / power sector to reduce power loss, permitting industries to generate their own power and supply excess to the national grid, and introducing energy efficiency and conservation measures in industries. To this end, EAC and EABC should organise a regional conference on “Competitive Energy Supply for sustainable Growth of Manufacturing in East Africa” to facilitate a consultative dialogue with all relevant stakeholders on measures to be adopted to enhance energy access and reduce power tariff for the manufacturing sector.
   7. The emerging industrialising countries such as Brazil, Russia, India, China and South Africa (BRICS) present EAC with immense opportunities for trade and industrial co-operation. The EAC should formulate a regional strategy for engagement with BRICS, with a view to leveraging and attracting Chinese investors, and positioning the region as ideal location for investors who have relocated from China due to rising labour costs.
   8. The EAC to enact a Community Law on anti-counterfeits and illicit trade and put in place an effective enforcement mechanism in order to deter imports, production, sales, and distribution of counterfeit and illicit goods in the East Africa market.
   9. The 2nd Manufacturing Business Summit to be held in September 2017, in Nairobi, Kenya at a date to be communicated. The EAC and EABC calls upon development partners and EAC Partner States to support convening of the 2nd Manufacturing Business Summit.

ADOPTED THIS DAY OF 2ND SEPTEMBER 2015 AT SPEKE RESORT, MUNYONYO IN KAMPALA, UGANDA