Africa is now emerging as the investment destination of choice with several multinationals trying to position their branches in different countries within the region. This is largely attributed to increasing population that forms a ready market in addition to provision of cheap labor. East African development is at a much faster pace than other regions as witnessed by several findings by economic and other financial institutions like the World Bank through their periodic reports.
The countries that make East African community include Rwanda, Kenya, Tanzania, Uganda and Burundi although there are other countries that also lie at the horn of Africa. Rwanda has continuously featured as the fastest developing country within the community although Kenya remains the economic giant among the member states.
The recent discovery of large oil reserves in Kenya and Uganda has contributed immensely to this faster rate of economic growth. Other than oil, these countries are also rich in many other minerals that are exported such as copper from Uganda, Diamond from Tanzania, titanium and soda ash from Kenya among others.
It is the increase interest in these countries by the foreign investors that actually portrays the real picture of high economic growth rate. After emerging from a turbulent election in 2007, Kenyan economy has picked up attracting several multinational firms that are setting up their regional headquarters in Nairobi (Capital City of Kenya) with the focus of serving the entire Eastern and Central African Market.
The real development in the region is best witness from the huge infrastructural projects that are being implemented. All the five member states currently have several contractors working on their roads to ensure that they meet the international standards. The expansion of the Mombasa port to accommodate larger ship is also part of these initiatives.
Ambitious project of consolidating all East African member communities under one umbrella is at advanced stage. The completion of this process will see both political and economic integration of these countries with a single passport for the whole region and a single currency. This will foster trade and attract both tourists and investors to the region.
The major challenge facing East African development has to do with threat of terrorism and insecurity in general. The countries shares border with Somalia which has remained a conflict zone for decades and in home to Alshabaab- one of the largest terrorist organization in the world today. In addition to occasional terrorist attacks, there is high rate of firearm smuggling through the porous borders of these countries resulting to major insecurity challenges.
Very high population growth rate on the other hand increases joblessness leading to increased social evils. With high HIV infection rates and poverty level in most of these countries, the general economic development process is taking place in a pace that is below its potential.
One of the major assets that remain untapped lies in the area of agriculture. Backed with good climate and several lakes and rivers, the region lies in fertile land that will be able to produce enough food to sustain the population and leave enough for export hence solving unemployment problems and fostering East African development plan.
The countries that make East African community include Rwanda, Kenya, Tanzania, Uganda and Burundi although there are other countries that also lie at the horn of Africa. Rwanda has continuously featured as the fastest developing country within the community although Kenya remains the economic giant among the member states.
The recent discovery of large oil reserves in Kenya and Uganda has contributed immensely to this faster rate of economic growth. Other than oil, these countries are also rich in many other minerals that are exported such as copper from Uganda, Diamond from Tanzania, titanium and soda ash from Kenya among others.
It is the increase interest in these countries by the foreign investors that actually portrays the real picture of high economic growth rate. After emerging from a turbulent election in 2007, Kenyan economy has picked up attracting several multinational firms that are setting up their regional headquarters in Nairobi (Capital City of Kenya) with the focus of serving the entire Eastern and Central African Market.
The real development in the region is best witness from the huge infrastructural projects that are being implemented. All the five member states currently have several contractors working on their roads to ensure that they meet the international standards. The expansion of the Mombasa port to accommodate larger ship is also part of these initiatives.
Ambitious project of consolidating all East African member communities under one umbrella is at advanced stage. The completion of this process will see both political and economic integration of these countries with a single passport for the whole region and a single currency. This will foster trade and attract both tourists and investors to the region.
The major challenge facing East African development has to do with threat of terrorism and insecurity in general. The countries shares border with Somalia which has remained a conflict zone for decades and in home to Alshabaab- one of the largest terrorist organization in the world today. In addition to occasional terrorist attacks, there is high rate of firearm smuggling through the porous borders of these countries resulting to major insecurity challenges.
Very high population growth rate on the other hand increases joblessness leading to increased social evils. With high HIV infection rates and poverty level in most of these countries, the general economic development process is taking place in a pace that is below its potential.
One of the major assets that remain untapped lies in the area of agriculture. Backed with good climate and several lakes and rivers, the region lies in fertile land that will be able to produce enough food to sustain the population and leave enough for export hence solving unemployment problems and fostering East African development plan.
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