INDUSTRY SPOTLIGHT
SPOTLIGHT ON EAST AFRICAN MANUFACTURING Unpacking manufacturing as a staple for economic prosperity and stability across the entire East African Community (EAC) Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin
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ast Africa’s manufacturing sector is an area ripe for investment opportunities. The sector represents a key component in securing both stability and economic prosperity across the continent, as a major driver of socio-economic progress. In 2015, it was reported that there were 251,774 firms in manufacturing across East Africa, with an overwhelming majority comprised of small companies employing less than 500 staff each. Today, that number amounts to some 12.5 million manufacturing workers in East Africa, representing 8.5 percent of the workforce. The East African Community (EAC) extends to
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Uganda, Rwanda, Kenya, South Sudan, Tanzania, Burundi, and most recently, the Democratic Republic of Congo (DRC). Within these states, Kenya stands as an industrial leader, mainly as a result of the country’s significant private sector activity in the realm of consumer goods. The country has come a long way since the 1980s, when manufacturing accounted for 10 percent of Kenya’s GDP. Kenya’s developed transport infrastructure is also a boon to this development, which has hampered progress in other EAC countries. Indeed, with four of the EAC member states land-locked, whilst two are coastal, different logistical challenges prevail in connecting the region.
