Africa is now emerging as the investment destination of choice with several multinationals trying to position their branches in different countries within the region. This is largely attributed to increasing population that forms a ready market in addition to provision of cheap labor. East African development is at a much faster pace than other regions as witnessed by several findings by economic and other financial institutions like the World Bank through their periodic reports.
The countries that make East African community include Rwanda, Kenya, Tanzania, Uganda and Burundi although there are other countries that also lie at the horn of Africa. Rwanda has continuously featured as the fastest developing country within the community although Kenya remains the economic giant among the member states.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many others.
It is the increase interest in these countries by the foreign investors that actually portrays the real picture of high economic growth rate. After emerging from a turbulent election in 2007, Kenyan economy has picked up attracting several multinational firms that are setting up their regional headquarters in Nairobi (Capital City of Kenya) with the focus of serving the entire Eastern and Central African Market.
The most visible evidence of the faster rate of East African development can be seen from the infrastructural improvement in the region. The Kenyan port city of Mombasa which remains the main sea entry point to the region has seen the expansion of the ports. This is meant to accommodate more ships of larger capacity which aims to meet the demand created by the regional market.
Ambitious project of consolidating all East African member communities under one umbrella is at advanced stage. The completion of this process will see both political and economic integration of these countries with a single passport for the whole region and a single currency. This will foster trade and attract both tourists and investors to the region.
East African development is however facing several threats that threaten to slow down the overall rate of growth. High insecurity for instance resulting from terrorist activities keeps investors away. Some neighboring countries like Somalia and Southern Sudan are still unstable in terms of governance, a situation that increases smuggling of illegal firearms through the porous borders increasing insecurity.
Other social challenges that are slowing down this economic development include high rate of population growth that results to a situation where many youths are jobless. The effect is that there is an increase in rural urban immigration that translates to expansion of slam settlement. This accompanied with many social evils and the threat of HIV results to a less productive population.
One of the major assets that remain untapped lies in the area of agriculture. Backed with good climate and several lakes and rivers, the region lies in fertile land that will be able to produce enough food to sustain the population and leave enough for export hence solving unemployment problems and fostering East African development plan.
The countries that make East African community include Rwanda, Kenya, Tanzania, Uganda and Burundi although there are other countries that also lie at the horn of Africa. Rwanda has continuously featured as the fastest developing country within the community although Kenya remains the economic giant among the member states.
The recent discovery of large oil reserves in Kenya and Uganda has completely changed the perception of major international investors who now see it as an alternative investment region. The situation is even made better by the presence of other specious minerals such as copper, diamond, titanium, soda ash among many others.
It is the increase interest in these countries by the foreign investors that actually portrays the real picture of high economic growth rate. After emerging from a turbulent election in 2007, Kenyan economy has picked up attracting several multinational firms that are setting up their regional headquarters in Nairobi (Capital City of Kenya) with the focus of serving the entire Eastern and Central African Market.
The most visible evidence of the faster rate of East African development can be seen from the infrastructural improvement in the region. The Kenyan port city of Mombasa which remains the main sea entry point to the region has seen the expansion of the ports. This is meant to accommodate more ships of larger capacity which aims to meet the demand created by the regional market.
Ambitious project of consolidating all East African member communities under one umbrella is at advanced stage. The completion of this process will see both political and economic integration of these countries with a single passport for the whole region and a single currency. This will foster trade and attract both tourists and investors to the region.
East African development is however facing several threats that threaten to slow down the overall rate of growth. High insecurity for instance resulting from terrorist activities keeps investors away. Some neighboring countries like Somalia and Southern Sudan are still unstable in terms of governance, a situation that increases smuggling of illegal firearms through the porous borders increasing insecurity.
Other social challenges that are slowing down this economic development include high rate of population growth that results to a situation where many youths are jobless. The effect is that there is an increase in rural urban immigration that translates to expansion of slam settlement. This accompanied with many social evils and the threat of HIV results to a less productive population.
One of the major assets that remain untapped lies in the area of agriculture. Backed with good climate and several lakes and rivers, the region lies in fertile land that will be able to produce enough food to sustain the population and leave enough for export hence solving unemployment problems and fostering East African development plan.
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