By Fredrick Obura
US is calling on Kenya and other members of the East African Community to show commitment in reforms that will improve business climate in the region.
Visiting US Assistant Secretary of Commerce Michael C Camuñez said American companies were interested in investing in the region but might lose out due to wanting business climate.
Camuñez called for reforms in the procurement, strengthening of public private partnership, and good laws to protect intellectual property rights to attract quality investors from other countries.
Regional hub
The weak intellectual property rights, he said was undermining innovation, a key area of economic growth in the region. “East Africa region is not only attracting multinational companies but even small-sized companies now using Kenya as a hub,” he said.
“There is need to tighten reforms, this includes creating greater regulatory transparency and predictability in the area of government procurement,” he said. “American investors want improvement in critical infrastructure and logistics, and, importantly, continued attention to strengthen good governance indicators.”
Addressing the business community at the East African Public Private Partnership (PPP) in Nairobi, Camuñez underscored need for better public private partnership policies to lay ground for American investors. He said PPPs are critical in attracting US investment. PPPs will play an integral role in realising our mutual objectives and implementing the goals of the state and Vision 2030.
regulatory laws
“In this respect, the government, along with the governments from throughout the EAC, has an important role to play in creating the necessary business climate and regulatory ecosystem to attract the necessary investment that drives these investments.”
Kenya and the region are attracting multinational corporations looking at business opportunities.
America’s Geothermal Development Associates has partnered with the Kenya Electricity Company on the construction of a 2.5megawatt Geothermal Power plant in Eburru, near Nakuru
Last year, total trade between the United States and the five East African Community (EAC) member states was approximately $1.5 billion — a 34 per cent rise from 2010.
American exports to Kenya rose 23 per cent during that same time.
“These types of encouraging developments are precisely why the Obama Administration has placed such emphasis on American trade relations with Kenya and its neighbouring countries.”
