NAIROBI - East African companies have been encouraged to shift their focus from competing against each other to complementing each other especially in the area of specialisation and division of labour to better take advantage of the Africa Growth Opportunities Act (AGOA) initiative.

Executive Director of East African Business Council (EABC), Charles Mbogori says the region’s private sector is yet to fully benefit from trade with United States under the AGOA almost ten years after the US Congress passed the Act due to some of these challenges.

"Each country should concentrate on the area that gives them the most comparative advantage and regional competitive advantage,” Mbogori said. "Industries that produce at smaller quantities can be merged into regional industries that can meet the demands of big external market.

”Mbogori spoke recently at the East African Community Preparatory Meeting for the 8th Sub-Saharan AGOA Forum, he explained that East African businesses have traditionally focused on Europe and Asian markets and are still not well informed of US market, its nature, and its business environment.

He cited an example of East African Breweries that has been able to merge country subsidiaries to create a company that can meet the growing demand in the region.

"Establishing collaborative partnerships with competitors, supporting industries or producers of complementary goods increases capital, market share and spreads the risk and encourages sustainability of a larger market,” Mbogori said.

He explained that the development and improvement of ports and other infrastructure is better handled at regional level and should be developed at regional level rather than country specific.

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