The Industrialisation Ministry’s grand plan to scale up
manufacturing and value-addition to inspire growth makes good reading at
this time of economic hardship.
At the core of the
growth agenda is promoting the processing of raw materials, especially
agricultural products, to give them value and prime them for the
international market.
It also involves enhanced
infrastructure development and offering incentives to small-scale
enterprises to enhance their productivity.
Ultimately,
it is envisaged that the strategies will create some 400,000 jobs in
the next decade, upscale the country’s manufacturing, create wealth, and
place Kenya in good stead to compete with industrialised nations.
POOR IMPLEMENTATION
On paper, the thinking looks impressive. However, in reality, it sounds like other past pronouncements that created high expectations but never moved beyond that.
On paper, the thinking looks impressive. However, in reality, it sounds like other past pronouncements that created high expectations but never moved beyond that.
Although there is no shortage of
lofty proposals on economic growth, industrialisation and social
development, implementation is poor.
Part of the
problem is a non-conducive environment for doing business which is
characterised by poor infrastructure, a rigid and restrictive legal
regime, resource wastage, corruption, and poor governance. Added to this
is high taxation.
IMPLEMENTATION STRATEGY
Appreciably, efforts have been made in recent years to create a conducive business environment through improved transport systems, energy supply, and a favourable legal regime.
Appreciably, efforts have been made in recent years to create a conducive business environment through improved transport systems, energy supply, and a favourable legal regime.
However, a lot still needs to be done to reach the threshold for economic take-off.
While
we commend the ministry for the initiative, we caution that unless
backed by a sound implementation strategy, the whole plan may end up
coming a cropper.
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