Regional industrialists step up fight against illicit trade

Manufacturers will be looking to find concrete mechanisms to fight illicit trade and substandard products at the forthcoming East African manufacturing business summit scheduled for next month in Kampala-Uganda.

Sunday, August 02, 2015
Cimerwa workers monitor a cement production line. Manufacturers in the EAC say lack of key skilled personel is costing them millions in imported labour. (Timothy Kisambira)

Manufacturers will be looking to find concrete mechanisms to fight illicit trade and substandard products at the forthcoming East African manufacturing business summit scheduled for next month in Kampala-Uganda.

"The meeting will discuss ways on how to fight illicit trade, including smuggling and counterfeting, to support the regional manufacturing sector,” Anne Rwigara, the secretary general Rwanda Association of Manufacturers (RAM, told The New Times.

She added that other issues to be discussed include how to bridge the skills gap in the region, as well as harmonisation of standards, policies, and access to credit.

"The summit will also seek to address existing gaps in skills and policy which affect the growth of the sector across the region,” Rwigara noted.

The summit is the first of its kind to be held in the region and is expected to attract over 400 top industrialists from across the EAC.

Manufacturers are expected to continue their advocacy for a more business-friendly environment in the region.

Lawrence Oketcho, the head of policy and advocacy at the Uganda Manufacturers Association, said the summit will also discuss the implementation of the regional industrial policy and standardisation.

Though EAC is one of the fastest-growing regions globally, the bloc is still heavily reliant on importation, which has continued to widen the trade deficit among member states.

However, local producers are optimistic that the summit will help provide innovative solutions to challenges thay face, and hence help reduce the cost of production.

They also believe it will be a step towards addressing the technical challenges affecting industries, saying this could help them find ways on how to build the capacity of sector players.

Denis Karera, the chairman of East African Business Council (EABC), said the summit is an opportunity for industrialists to engage policy-makers on issues affecting the sector.

Manufacturers recently formed a regional body to lobby for a more supportive business environment, among others.

Robert Bayigamba, the Rwanda Manufacturers Association chief, said local industrialists will use the summit to market Rwandan products.

Betty Maina, the chief executive of the Kenya Association of Manufacturers, said industrialists need to find ways of working together to remain competitive.

She added that they should also be innovative in their production processes, and product marketing to stay competitive.

Skills gap

A recent study by Research Moguls Rwanda indicated that manufacturers are spending heavily on looking for the right expertise.

Ivan Murenzi, the lead research officer at the firm, said over 50 per cent of industrialists polled said lack of skills is one of the major constraints pulling back the sector.

"They are also finding it hard finding the right skills within and outside the region,” he added.

Therefore, the issue of lack of technical knowhow required to take the EAC bloc industrial sector to the next level could take centre stage at the summit.

business@newtimes.co.rw