EAST AFRICAN FIRMS TOLD TO BE EXPORT-ORIENTED

 SMALL and medium enterprises (SMEs) in East Africa have been requested to be export-oriented so as to boost their competitiveness.

Governments should also establish mechanisms that will access them with affordable capital from the banks and other financial institutions.

"Besides being export-oriented, they should offer alternatives to imported goods", insisted Peter Mathuki, the secretary general of the East African Community (EAC). 

He made the appeal during the on-going 21st micro, small and medium enterprises trade fair in Mwanza which has seen a record exhibitors from around the region.

Dr. Mathuki said given their small capital, banks and allied loan agencies should offer financial incentives to sustain their operations. 

These, he said should include suspension of loan repayments, fee waivers, relief loans and expedited loan approvals.

Micro, small and medium enterprises account for 90 percent of businesses in EA, 80 percent of businesses and 20 percent of Gross Domestic Product (GDP).

The 10-day exhibition which started on December 2nd at Mwanza's Rock City grounds, attracted about 1,300 small enterprises, artisans and innovators from around the region.

The minister for Industries and Trade Kitila Mkumbo who graced the official opening on Sunday said the fair was one of the integration projects. 

"The EAC countries have agreed to develop policies that will facilitate cross border businesses. The fair is one of the components", he said.

He appreciated that some partner states have already started to put in place mechanisms that will access affordable capital to the small enterprises.

The first exhibition for EAC entrepreneurs, artisans and innovators took place on November 30th, 1999, the day the EAC Treaty was signed by the regional leaders. 

Thereafter, the Heads of State then directed that the fair should be held annually on rotational basis so as to enhance the desired economic integration.

Ms Jenista Mhagama, the minister of State responsible for Labour, Youth, Employment and Persons with Disability emphasized the need for skills development.

"Skills development is a cure for unemployment, especially for the youth", she said, expressing her appreciation for some technologies on display.

She, however, challenged the EAC partner states to remove unnecessary a host of barriers at their borders to enable the SMEs to consolidate and expand their markets.