THE KAMPALA RESOLUTIONS ON MANUFACTURING

1. The 1st Manufacturing Business Summit was held in Kampala Uganda at Speke Resort, Munyonyo on 1-2 September 2015. The Business summit was officially opened by Rt. Hon, Dr. Ruhakana Rugunda, the Prime Minister of the Republic Uganda.

2. The Summit was attended by H.E Dr. Mukhisa Kituyi, UNCTAD Secretary General, Amb. Richard Sezibera, EAC Secretary General, Hon. Amelia Kyambadde, the Minister for Trade, Industry and Cooperatives, Hon. Adan Mohamed, Cabinet Secretary for Industrialization and Enterprise Development, Kenya, Hon. Tabu Abdallah MANIRAKIZA, Minister for Finance Republic of Burundi, Hon. Adam Kighoma Ali MALIMA Deputy Minister for Finance, United Republic of Tanzania, Dr. Joseph Mungarulire, representing the Minister for Trade and Industry, Republic of Rwanda, Mr. Denis Karera, EABC Chairman, Amos Nzeyi, UMA Chairman . The Summit was also attended by Representatives from development partners and regional economic communities (RECs) including: UNIDO, AfDB, CBC, UNECA, AMDC, World Bank, TMEA, GIZ, PTB, COMESA, NEPAD and SADC.

3. The 1st Manufacturing Business Summit was jointly organized by East Africa Community Secretariat and East African Business Council and hosted by the Government of Uganda. The forum ushered in a new dawn in the history of manufacturing in East Africa region as it brought together for the first time all shareholders in manufacturing under one roof to discuss the question of manufacturing and its role in deepening the integration and fostering economic growth in EAC.

4. The forum made the following resolutions on this date of 2nd September 2015:

1. To effectively utilize the available resources within the region for structural transformation of the manufacturing sector in key value chains, a regional special purpose vehicle (SPVs) that facilitate joint investment in capital intensive and flagship projects should be established (lessons can be drawn from Maputo Development Corridor, or Air-bus Project in EU). The framework should outline each country’s comparative and competitive strength in resources and inputs, and how EAC countries can collaborate and develop such strategic industries to avoid harmful competition.

2. Public and private procurement is key to creating necessary demand for locally manufactured products as well as promoting technology based business start-ups. To this end, the government of East Africa Partner States and the private sector are called upon to prioritize in their procurement, the sourcing of locally manufactured products including in agro-food, furniture, motor-vehicles, parts, apparels and footwear. The EAC Secretariat in collaboration with EABC should prepare a regional promotional strategy for the implementation of Buy-East Africa-Build- East Africa scheme (BEABEA).

3. For the purposes of resolution No. 2, the EAC should formulate a regional Local Content policy which clearly defines ‘local’ in a regional content to ensure that preferential treatments accorded to nationals are extended to all suppliers within in East Africa region.

4. The EAC to formulate a regional policy for motor vehicles , textiles & apparels, leather & footwear to create a coherent policy regime for the development of these sectors which are crucial for employment creation, poverty reduction and advancement in technological capability.

5. EAC in collaboration with EABC to formulate a regional skill development and partnership programme targeting mainstreaming of apprenticeship, internship and graduate on-job training in school, TVET and university syllabuses/curriculum.

6. Energy (power) is a vital input into manufacturing constituting between 20-50 percent of the cost of production. The East Africa Partner States are called upon to take measures to reduce the cost of power to through: reforms in the energy/power sector to reduce power lose, permitting industries to generate their own power and supply excess to the national greed, and introducing energy efficiency and conservation measures in industries. To this end, EAC and EABC should organize a regional conference on “Competitive Energy Supply for sustainable Growth of Manufacturing in East Africa”.

7. The EAC should formulate a regional strategy for engagement with China in a view to leveraging and attracting Chinese investors, and re-location of manufacturing into the region taking advantage of the rising labour costs in China.

8. The EAC to enact a law and put in place an effective enforcement mechanism that will deter import, production, sales, and distribution of counterfeit and illicit goods.

9. The Summit decided that Manufacturing Business Summit is to be held annually and the date and venue will be communicated in good time. The EAC and EABC calls upon Development Partners and EAC Partner States to support convening of the 2nd Manufacturing Summit.

ADOPTED THIS DAY OF 2ND SEPTEMBER 2015, AT SPEKE RESORT, MUNYONYO, KAMPALA UGANDA