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 membership of the East African Community include Tanzania, Rwanda, Burundi, Uganda and Kenya all of which are located at the horn of Africa. With ever improving governance level largely attributed to the improving political and democratic space, the region is at forefront in continental development.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many 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 most visible evidence of the faster rate of East African development can be seen from the infrastructural improvement in the region. The Kenyan port city of Mombasa which remains the main sea entry point to the region has seen the expansion of the ports. This is meant to accommodate more ships of larger capacity which aims to meet the demand created by the regional market.
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.
Other social challenges that are slowing down this economic development include high rate of population growth that results to a situation where many youths are jobless. The effect is that there is an increase in rural urban immigration that translates to expansion of slam settlement. This accompanied with many social evils and the threat of HIV results to a less productive population.
Agricultural potential of the region is so immense and remains one of the areas that can be fully utilized in order to experience faster East African development. Considering a lot of opportunities like fresh water lakes, several rivers and fertile soils, the region has yet to create a name in the world of agriculture and this should be the focus of investors.
The membership of the East African Community include Tanzania, Rwanda, Burundi, Uganda and Kenya all of which are located at the horn of Africa. With ever improving governance level largely attributed to the improving political and democratic space, the region is at forefront in continental development.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many 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 most visible evidence of the faster rate of East African development can be seen from the infrastructural improvement in the region. The Kenyan port city of Mombasa which remains the main sea entry point to the region has seen the expansion of the ports. This is meant to accommodate more ships of larger capacity which aims to meet the demand created by the regional market.
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.
Other social challenges that are slowing down this economic development include high rate of population growth that results to a situation where many youths are jobless. The effect is that there is an increase in rural urban immigration that translates to expansion of slam settlement. This accompanied with many social evils and the threat of HIV results to a less productive population.
Agricultural potential of the region is so immense and remains one of the areas that can be fully utilized in order to experience faster East African development. Considering a lot of opportunities like fresh water lakes, several rivers and fertile soils, the region has yet to create a name in the world of agriculture and this should be the focus of investors.
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