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.
The increasing interest by the investors setting up their operational base here indicates the significance that this region plays in African development. The mid positioning between the north and the south of Africa making this the based place to reach the African market. A quick survey of Nairobi city (the Kenyan capital) will reveal several multinationals that have taken advantage of this geographic positioning.
Infrastructural development is also impressive. The governments have invested heavily to develop road network, modern railway and increase the capacity of the major airports. There is an ongoing drilling of Mombasa port (coastal city in Kenya) to increase the port capacity to handle bigger ships.
The integration of the countries within the region to form East African Community is at advanced stage. The last phases of the plan intend to have the member states operate with the single currency and a single passport. This will greatly boost trade within these countries in addition to making them tourist destination of choice.
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 does not auger well with this development plan. It leads to increased poverty levels, joblessness and other social evils. High rate of HIV infection in this region worsen the situation as they are part of the threats to economic growth in the region.
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.
The increasing interest by the investors setting up their operational base here indicates the significance that this region plays in African development. The mid positioning between the north and the south of Africa making this the based place to reach the African market. A quick survey of Nairobi city (the Kenyan capital) will reveal several multinationals that have taken advantage of this geographic positioning.
Infrastructural development is also impressive. The governments have invested heavily to develop road network, modern railway and increase the capacity of the major airports. There is an ongoing drilling of Mombasa port (coastal city in Kenya) to increase the port capacity to handle bigger ships.
The integration of the countries within the region to form East African Community is at advanced stage. The last phases of the plan intend to have the member states operate with the single currency and a single passport. This will greatly boost trade within these countries in addition to making them tourist destination of choice.
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 does not auger well with this development plan. It leads to increased poverty levels, joblessness and other social evils. High rate of HIV infection in this region worsen the situation as they are part of the threats to economic growth in the region.
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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