Once the region’s heads of state adopt the Industrialization Policy, importation of used clothes and shoes is to be outlawed in East Africa. The policy also seeks to restrict importation of used motor vehicles.
If the policy that seeks to transform the manufacturing sector is adopted during the Heads of State Summit in Arusha, Tanzania, on Wednesday, individual countries are expected to domesticate it before it takes effect.
The summit has prioritized industrialization on the agenda, with the five presidents expected to make a decision on the modalities for promotion of motor vehicle assembly in the region and reduction of the importation of used motor vehicles from outside the community. It also seeks to promote the textile and leather industries in the region and stopping importation of used clothes, shoes and other leather products from outside the region.
Betty Maina, Kenya’s Principal Secretary in the Ministry of EAC. says that “This means the region, like the other developing countries, is ready to transition itself into an industrial bloc through a higher level of production quality and manufacturing practices.”
This move is meant to benefit industry and increase access to locally manufactured products in the region hence creating employment opportunities at the same time.
On the importation of motor vehicles, the presidents will agree on the proposed new rules on age limit, valuation methodologies for used motor vehicles and standardized depreciation rates.
Kenya and Rwanda forbids importation of cars that are more than eight years old, while Tanzania has a maximum car age limit of 10 years and Uganda has no limits on car age.
The EAC Council of Ministers last year proposed a ban on second-hand clothes, bags and shoes to promote the region’s textile and leather industries.
The presidents then directed the council to study modalities for the promotion of motor vehicle assembly with a view of stopping or reducing the importation of used vehicles in East Africa.
Ms Maina said that the ban will be done in a gradual phase-out mechanism for a period of time that will be endorsed by the presidents as proposed by the EAC ministers.
The EAC industrialisation policy approved by the EAC Summit in November 2011 provides a regional framework aimed at growing and expanding the manufacturing and small and medium enterprise (SME) business so as to create employment and income for the benefit of the region.
The policy aims to transform the region into modern industrial economies through high value addition industries an increase in manufactured exports, thereby promoting employment and purchasing power, product diversification and increased linkages with other economic sectors.
It proposes the establishment of regional industries to drive industrial growth and stresses strong linkages between industries and key sectors of the economy such as agriculture, infrastructure and energy.
