There is a need to intensify joint investment in East Africa

The on going East African Community Summit in Nairobi whose theme “Invest in EAC where challenges are opportunities”, has seen all the five member state Presidents in support of creating a more conducive environment for trade in the region.

Thursday, July 30, 2009

The on going East African Community Summit in Nairobi whose theme "Invest in EAC where challenges are opportunities”, has seen all the five member state Presidents in support of creating a more conducive environment for trade in the region.

As the global economic crisis has reduced the flow of foreign capital to East Africa, the private sector has become the only viable option to implementing the investment agenda.

The Daily Nation newspaper reported that the problem of counterfeit products in the market is hindering the regional economy. As the leaders noted, these counterfeits are hindering the growth of small and medium-sized enterprises.

I believe that the EA governments have failed in some aspects. By the time counterfeit medicine, fake batteries and other counterfeit products enter the market, the governments are very aware of it. It is not the customer’s fault for choosing to buy these cheap goods

I will give example with my own country, Kenya, again to illustrate my point. Lack of access to ‘official’ medicine force people to buy their drugs in shops, where substandard drugs are sold.

Despite the presence of the pre- verification of conformity programme under the Kenya Bureau of Standard, the country still witnesses production and importation of both substandard and counterfeit products.

The same case applies in Kenya where farmers have complained regularly about the fact that government allows importation of cheap Pakistan rice in the country yet they grow one of the best types of Basmati rice in Mwea, Eastern Kenya.

There is however hope in the fight against fake products in East Africa. The region is introducing a new law, expected to ready early next year, where landlords will have a right to give notice to tenants who will be using their premises to manufacture or sell counterfeit goods.

They will be required to do so after a complaint from a certain brand owner.

We all agree that there is the need to fight counterfeit products if we want to be self sufficient and boost our economy.

Well it true the leaders have agreed that it will be more attractive to market the region as a bloc but the question of how will balance be found while some countries are more economically advanced than others bothers me.

karuthum@gmail.com