By Business Insider Reporter
The East African Business Council (EABC) and the African Development Bank (AfDB) have launched a landmark project aimed at accelerating sustainable and inclusive industrialization in the East African Community (EAC), a move expected to boost manufacturing competitiveness, create jobs, and strengthen intra-regional trade.
The two-day hybrid launch, held in Arusha earlier this month, brought together policymakers, private sector leaders and development partners to kick off the initiative dubbed “Accelerating Sustainable and Inclusive Industrialisation in the East African Community (EAC)”.
The project targets three priority value chains – edible oils, textiles, and leather – with the aim of enhancing value addition, promoting regional trade harmonization, and attracting investment to expand the region’s manufacturing base.
Driving industrial transformation
In his opening remarks, Mr. Adrian Raphael Njau, acting Executive Director of EABC, hailed the AfDB’s support and said the partnership marks a critical step toward achieving the region’s industrial and economic transformation goals.
“This project will harmonise regional trade instruments, promote value addition in priority value chains, enhance export competitiveness and attract investment,” Mr. Njau said. “Ultimately, it will increase the manufacturing sector’s contribution to GDP and create much-needed job opportunities for youth.”
He added that the EABC remains committed to ensuring that the project delivers tangible results that contribute to economic growth, regional competitiveness, and shared prosperity.
AfDB: Supporting Africa’s industrial ambitions
Mr. Gerald Ajumbo, AfDB’s Trade Facilitation Officer, commended EABC’s leadership in conceptualising the initiative and reaffirmed the Bank’s commitment to promoting regional integration and industrial development across the continent.
“This launch marks an important step in aligning our efforts to accelerate industrial growth,” Mr. Ajumbo said. “The AfDB is proud to support initiatives that help African economies move up the value chain and reduce dependency on raw material exports.”
During the launch, AfDB officials conducted technical sessions to enhance EABC’s capacity in financial management, procurement compliance and project monitoring and evaluation – key to ensuring transparent and efficient implementation.
Regional context: Building industrial strength
East Africa remains one of Africa’s fastest-growing economic blocs, with manufacturing accounting for around 8–10 percent of GDP across EAC member states. However, the region continues to grapple with challenges such as limited value addition, high production costs, and fragmented regulatory frameworks that hinder cross-border industrial growth.
The new EABC-AfDB project directly addresses these challenges by promoting policy harmonization, cross-border industrial linkages, and regional investment in manufacturing value chains. It also aligns with the EAC Industrialisation Strategy (2021–2031), which prioritizes building competitive industries through innovation, sustainable production, and regional cooperation.
The initiative complements AfDB’s Ten-Year Strategy (2024–2033) and the Bank’s High 5 priorities, particularly the “Industrialise Africa” and “Integrate Africa” pillars, both of which aim to boost Africa’s industrial competitiveness and strengthen regional value chains by 2033.
Tanzania’s Role in regional industrialisation
As one of the EAC’s largest and most diversified economies, Tanzania stands to benefit significantly from the project. The country’s expanding manufacturing base in agro-processing, textiles, and leather aligns closely with the targeted value chains.
The government has in recent years intensified efforts to attract industrial investment through tax incentives, improved infrastructure, and industrial parks such as the Benjamin William Mkapa Special Economic Zone in Dar es Salaam and the Kibaha Industrial Park in Coast Region.
By fostering regional value chain integration, the EABC-AfDB partnership is expected to open new export opportunities for Tanzanian producers while promoting local sourcing and reducing import dependency.
Toward a Borderless, Industrialized East Africa
Established in 1997, the East African Business Council serves as the regional apex body representing private sector associations and corporates from all eight EAC partner states. Its vision of “a borderless East Africa for business and investment” continues to guide its advocacy for a unified regional market that attracts sustainable, private sector–driven growth.
The AfDB, on its part, has been one of Africa’s most consistent development partners, financing projects that promote regional integration, infrastructure, and industrialization. As the EABC and AfDB embark on this new partnership, stakeholders across the region hope it will serve as a model for inclusive industrial growth – one that creates jobs, empowers local enterprises, and drives East Africa closer to its goal of becoming a competitive manufacturing hub by 2033.
