BY JAMES GASHUMBA
9th December 2012
Tanzania’s Prime Minister Mizengo Pinda has called on East African countries to create an enabling environment for the private sector to grow to help wean the sub-region off aid.
“Developing infrastructure, promoting ICT development, regional integration and combating of corruption should be put at the forefront of the EAC (East African Community) economies,” he said.
He was speaking during a panel discussion on the first day of the East Africa Economists summit in Kigali.
The two-day forum, organised by The Economist Conferences – part of The Economist Group – attracted international business leaders and policymakers to engage in frank and open debates on East Africa’s economic prospects.
The summit, held under the theme, “Infrastructure and Growth: Government and Business in Dialogue,” also discussed trade barriers, youth unemployment, opportunities in ICT, technology, mining, transport and agriculture.
Participants also discussed future trading prospects for East Africa in a globalised economy, examining chances of good performance in the coming years, most compelling opportunities for investors, and practical steps governments should take to ensure the region maximizes economic potential.
Stephane Paquier, President of Dow Chemicals Africa, observed that East Africa was the fastest growing region in the continent, elaborating that great potential exists in the EAC bloc which can be exploited for the benefit of East Africans. “We want to have a huge presence in EAC countries because we see a lot of potential in the region’s growth,” he said. Dow Chemicals connects chemistry and innovation with sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity, he said.
The Economist Conferences is a major provider of international forums for senior executives seeking new insights into strategic issues. The meetings include industry conferences, management events and government roundtables held around the world.
Earlier, Rwanda’s Finance Minister John Rwangombwa, had faulted development partners for freezing aid to Rwanda over insinuations of links to Congolese rebels. He qualified the decision as unilateral and based on a contested report, telling the audience that aid withdrawal does not only contradict the principle of fairness but it also goes against the spirit of donor-recipient relations.
“This is in complete violation of the principles of aid effectiveness and partnership between donors and the recipient countries,” the minister declared. He affirmed that aid cuts would slow down the realization of the country’s growth expectations, as $362 million in aid has been cut, with only $122 million received.
There is a remaining portion of $240 million, where $125 million is expected from the World Bank and $40 million from the African Development Bank, which the government is still hopeful will be released, he said.
Nearly half of Rwanda’s budget was usually funded by donors, with the aid freeze bringing about a reduction in Finance Ministry growth forecasts by 1 per cent, he added, not making reference to any independent forecasts.
SOURCE: GUARDIAN ON SUNDAY
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