HOME > Local Reports
EAC TOLD TO FOLLOW CHINA'S ROLE MODEL
2014-10-21 19:43

    East African community member states have been advised to learn from china’s role of government in partnering the private sector and its provision of business support services such as infrastructure.

    Tonia Kandiero, Resident Representative of African Development Bank in Tanzania, told the African that the importance of provision of such services through the arrangement of special Economic Zone (SEZs),was one such support as well as importance of developing technology and skills ,

    “China offers a turnkey approach to its engagement with East Africa, not only does China come with financing, but it also come with equipment, technology and skills. This is an approach that African can learn from”, said Kandiero recently.

    She pointed out that East Africa should demand China transfer skills and Technology to the region instead of allowing it to simply export raw materials.

    Since both china and East Africa had in the same economic badlands in 1970s and 1980s, China’s rapid economic transformation holds special lessons for those countries.

    Also the most profound is that China’s economic performance is nothing short of a miracle. It shows what a people with confidence, determination and vision can achieve.

    East African especially leaders need only to look at China to realize that their economic dreams will come true only when they start mobilizing their own local potential and resources.

    EA governments also needed to do more to put in place the infrastructure, including power and transport……that can support a domestic manufacturing industry.

    China's economy was developed under conditions that would bring tears to eyes of superior western do- gooders , but the result is there for all to see.

    Expert told this paper that another lesson EA can learn is that national economic development always come through the effort and determination of the citizens ,but Africa is tormented with countless western do- gooders ,all purporting to be on some development mission.

    They underscore the need for EA countries to find solutions to its problem of low intra-region trade through long- term planning and greater cooperation on programs that will boost connectivity. Infrastructure required lifting economic growth such as transport and power investments would need to be developed.

    However, AfDB head ,said increasing of wages in China create an opportunity for East African countries because as wages labour costs rises in China which is already happening and as China moves toward more sophisticated industries , it is expected that it will lose its competitiveness in labour intensive sectors.

    It is a result estimated that China will shed close to $85 million (over Tsh136 billions) jobs to other developing nations over the next few years, Kandiero clarified

    According to her this is an opportunity, which African countries in general and East African countries in general and East African Countries in Particular should take full advantage of.

    East Africans should therefore proactively position itself to take advantage of this industrial migration by courting such industrial re- location and investment from China.

    The banker said in North Africa for example, there is evidence of an expansion in China’s investment from a focus on extractive sector to electronics, automotive and textiles.

    In 2008, Hisense opened its fifth production plant in Egypt producing 100,000 LCD TVs every year, with its Egyptian partner, Sun TV. Key drivers of this shift include the rising purchasing power in the African region, coupled with rising wages and tough competition on the Chinese domestic market.

Suggset To Friend:   
Print