US pledges support to East Africa private sector

Arusha. The United States has pledged to support private sector growth in East Africa and has invested more than $40 million in the blue economy in Zanzibar.

The commitment was made by the American ambassador to Tanzania, Mr Michael A. Battle, during his visit to the East African Business Council (EABC) head office in Arusha on Thursday.

“We are focused on promoting the growth of the private sector and sustainable economic development in the East African Community (EAC) region,” he said.

According to him, some $40 million has been injected by US investors for the development of various segments of the blue economy in the Isles.

These are fisheries, aquaculture, maritime transport, coastal marine and maritime transport, tourism, energy, and other marine ecosystem services.

Mr Battle, who is also accredited to the EAC, paid a visit to the EABC offices to explore areas of partnership aimed at strengthening East Africa-USA trade and investment ties.

EABC executive director John Bosco Kalisa told the US envoy that the bloc was open for business. “There is political goodwill from the EAC Heads of State to improve the trade and investment climate in the region,” he pointed out.

He said the admission of DR Congo has expanded the bloc’s market to $305.3 billion and a total population of 283.7 million.

 The EAC has conducted a verification mission to assess Somalia’s readiness to join the community as the eighth member.

Mr Kalisa further stated that the regional business body was committed to promoting trade for peace programmes in the region “to ease doing business”.

Also highlighted during the visit was USAID’s Feed the Future project through TradeMark Africa and the Corporate Council of Africa.

 Other issues that came up for discussion were the US-East Africa Trade and Investment Forum and the forthcoming US-Africa Business Summit 2023, to be held in Botswana.

“The EAC treaty is people-centred and market-driven, and EABC is at the forefront of championing advocacy for the full implementation of the Common Market and Customs Union protocols,” Mr Kalisa said.

However, he emphasised that the acceleration of the Common Market was crucial for the achievement of the Monetary Union and its attendant single currency economy.

Other areas discussed during the visit included strengthening partnerships with US alumni and AmCham, tax harmonisation, women, youth, and small and medium enterprises (SMEs) in trade.

The US ambassador was also informed of the 14th African Union Private Sector Forum 2023 in Nairobi and the East African Business and Investment Summit slated for Kampala, Uganda, later this year.

Later, Mr Kalisa hosted Uganda’s High Commissioner to Tanzania and the EAC’s Fred Mwesigye expressed his commitment to promote trade ties between Tanzania and Uganda through closer collaboration with the EABC.

Other areas discussed during the visit included the African Continental Free Trade Area and improving productive capacities based on countries’ comparative advantages.

The two also deliberated on areas of partnership to strengthen economic diplomacy, empower SMEs, youth and women in trade, and prepare for the Africa Waste is Wealth Conference in Nairobi later this year.

“Economic diplomacy is central to boosting intra-EAC trade and creating shared prosperity and jobs for East Africans,” the EABC boss explained.

He elaborated that the regional business body championed public-private dialogues with ministers and trade facilitation agencies at the borders “to unlock barriers to trade, especially non-tariff barriers”.