The East Africa Trade and Investment Hub
Boosting trade and investment with and within East Africa 
Monthly Newsletter
March 2015
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Making Investment Happen

Iterations of USAID-supported Trade Hubs have been around for awhile. The new USAID East Africa Trade and Investment Hub is the first to add Investment to the project name and to the forefront of its strategic approach. Curious about the "investors lens" that we use to drive our project objectives? You can read the East Africa Trade and Investment Hub's first year work plan, here. Warning, we include a lot of detail, i.e. it's a bit long. Here are a few of the investment highlights:  

 

The Hub looks to facilitate investment in the East African Community that drives economic growth and creates jobs. We do this by promoting U.S. Government agency resources (see "The Investor Toolbox" in the lower right hand corner of this  newsletter) and by partnering with both the U.S. and East African public and private sector to identify high-value opportunities and help close transactions.

  

Here are a few of our picks for East African investment:

  

1. Biotechnology - Biotechnology is critical for food security; its adoption in East Africa would help to significantly increase agricultural production, increase trade, and attract investment in technology research and development.

 

The Hub's Investment Director Kanini Mutooni discusses building the capacity of local talent and African innovation with the Vice President of IBM Research in Africa, Dr. Kamal Bhattacharya

2. ICT and Innovation - The ICT and innovation sector in East Africa

has undergone a significant transformation within the last five years, with improved fiber optics links and availability of mobile telephony and related services, notably mobile money.   

   

3. Agribusiness - Agribusiness and its related activities - food processing, harvest and distribution, marketing and the financing of inputs - accounts for more than 50% of the East African Community's GDP and over 70% of employment in the region. What to watch: Foreign Direct Investment in high-value crops and non-traditional products destined for the international market.       

 

Visit our website to learn more. www.eatradehub.org 

The Kenya National Chamber of Commerce and Industry's Busy Week of Enabling Trade

On March 18, 2015, the Chairman of the Kenya National Chamber of Commerce and Industry, Mr. Kiprono Kittony, traveled to Capitol Hill in Washington D.C. to meet with U.S. representatives. Trade between the U.S. and Kenya, and the larger East African Community, is on an upward trajectory.

 

On March 19, 2015, the Kenya National Chamber of Commerce and Industry welcomed British Foreign Secretary Rt Hon Philip Hammond MP to sign an MOU between the British Chamber of Commerce and the Kenyan National Chamber of Commerce and Industry.  

 

On March 21, 2015, Burundi VP H.E Prospere Bozombanza visits Kenya, telling the Kenya National Chamber of Commerce and Industry that Kenyan banks and supermarkets should come invest in Burundi.    

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The Kenya National Chamber of Commerce and Industry recently transformed from a parastatal to a private sector organization. Its goal is to create a business enabling environment in Kenya. The East Africa Trade and Investment Hub is partnering with the Kenya National Chamber of Commerce and Industry to deliver efficient and effective services to its membership in addition to facilitating new investment in the region.

 

 

Moving Forward with Sanitary and Phytosanitary Measures under the United States Government and East African Community Cooperation Agreement
The East Africa Trade and Investment Hub has agreed to provide sanitary phytosanitary expertise to the East African Community (EAC), its partner states, and relevant stakeholders. According to the Cooperation Agreement, the EAC has until August to develop a sanitary phytosanitary work plan and identify sanitary phytosanitary priorities.

Harmonized sanitary phytosanitary measures will improve the quality of East African Community agricultural products traded within the region and globally.

The United States and East African Community Cooperation Agreement seeks to implement critical customs reforms, harmonize standards, and undertake multilateral commitments that support greater EAC regional economic integration and strengthen its trade relationship with the United States and other global partners.
   

Read more about the Cooperation Agreement here
Why Trade Shows?
Click on the below infographic to find out.


In This Issue
Making Investment Happen
The Kenya National Chamber of Commerce and Industry's Busy Week of Enabling Trade
Moving Forward with Sanitary and Phytosanitary Measures under the United States Government and East African Community Cooperation Agreement
Why Trade Shows?
Did You Know This About the African Growth and Opportunity Act?
The Hub Promotes Africa in Asia - the Intertextile Trade Show, Shanghai
The Investor Toolbox
The East Africa Trade and Investment Hub supports two U.S. presidential initiatives
A partnership between the United States and sub-Saharan Africa to increase internal and regional trade within Africa, and expand trade and economic ties among Africa, the United States, and other global markets.
Feed the Future strives to increase agricultural production and the incomes of both men and women in rural areas who rely on agriculture for their livelihoods. Investments in inclusive agriculture-led growth encompass improving agricultural productivity, expanding markets and trade, and increasing the economic resilience of vulnerable rural communities.
Did You Know This About the African Growth and Opportunity Act?
"I had no idea that we could source fabrics in China, get them cut and sewn in Africa, and then send the finished garments duty-free to California where we are based. We used to sell to Nordstrom's and other large retailers, but the business has changed and consequently we have had to adapt. As a small business, we are excited to learn that there are factories in East Africa that can meet our needs. The duty savings is a bonus. We will be exploring opportunities in East Africa for sure."

Roger Keller, Owner/President
Nannette
Fillmore, CA
The Hub Promotes Africa in Asia - the Intertextile Trade Show, Shanghai

The East Africa Trade and Investment Hub's Trade Promotion and AGOA Director coordinated East African participation at the Intertextile apparel trade show, including:

  1. An Origin Africa booth that showcased a range of of East African exporters
  2. A booth staffed by representatives from the Kenya Export Processing Zones Authority that showcased Kenyan exporters
  3. A seminar, delivered by the Hub's Trade Promotion and AGOA Director, entitled African Growth and Opportunity Act (AGOA) and Africa as a Sourcing and Investment Destination
The Intertextile show is one of the largest trade fairs for fabrics in China. It afforded the Hub the chance to speak with major companies based in Asia about opportunities for sourcing and investing. Namely, that they could still be eligible for AGOA benefits if their textiles originate in Asia .
 
The Investor Toolbox 
The United States Government has many agencies  which work to facilitate trade and investment domestically and abroad.

This month's highlight - The Overseas Private Investment Corporation, OPIC

OPIC is the U.S. government agency responsible for supporting private-sector investment in developing countries. The agency conducts outreach activities such as the Expanding Horizons workshop.

 

Here are a few of the resources a U.S. business owner can discover at an Expanding Horizons workshop:

  • How expanding overseas can benefit your business at home.
  • U.S. government programs offering assistance to small and medium sized enterprises planning to go global.
  • Political risk insurance and how it can protect your business.
  • Accessing capital for your overseas project.
  • Current opportunities in the renewable energy and clean technology sector.
  • OPIC's special finance products for small businesses.

To learn more and view a schedule of upcoming Expanding Horizons workshops, click here


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