DRC in East African Community is a golden opportunity for growth

President Uhuru Kenyatta is received by President Felix Tshisekedi of the Democratic Republic of Congo on arrival at N'djili International Airport in Kinshasa last year. [PSCU, Standard]

The Democratic Republic of Congo has officially joined the East African Community (EAC), becoming the seventh and largest member State to the regional trading bloc.

In 2020, Kenya exported Sh14.2 billion worth of goods to the DRC, a five per cent increase from Sh13.4 billion the previous year. This was higher than exports to South Africa and Ethiopia combined and underlined the enormous potential for trade between the two nations.

DRC’s entry will remove barriers to trade within the region, growing exports in the medium-term, thus creating millions of jobs.

For this to happen, however, policymakers and the private sector in Kenya and the wider EAC need to have a comprehensive and cohesive trade strategy for engaging with Kinshasa?.

Other trade pacts signed in the past have fallen short of delivering what they promised and DRC’s participation in the fastest growing regional trade bloc should not suffer the same fate.

In recent years, the EAC has been bogged down by infighting and an increase in non-tariff barriers as member states adopt protectionist policies in the face of economic headwinds such as Covid-19.

The EAC anticipates that the DRC’s inclusion could expand the regional GDP by as much as 15 per cent, an ambitious target that will require significant investments in the country’s manufacturing, agricultural and trade sectors.

Kenyan manufacturers and agro-processors face significant hurdles, particularly those practising small scale, which has kept the cost of doing business high and prohibitive for growth or new entrants.

While a lot of work has gone into building rail and road infrastructure, this is not enough and there is a need to enhance capacity and service delivery to allow them participate in the export market.

At the same time micro, medium and small enterprises (MSMEs) should not be left behind. Following the Covid-19 pandemic, Kenyan entrepreneurs struggling to rebuild their businesses are finding it hard to diversify and find new markets for their goods.

The DRC market is a massive opportunity and there is enough market for both large and small exporters that seek to grow their businesses into the region.

Consumers too will benefit from buying goods made in DRC, a resource-rich nation.

The government and the various private sector associations that routinely lobby for more trade opportunities should ensure Kenya gains from the expanded EAC while also creating opportunities for partnerships with their DRC and other regional counterparts.