DIAZ: Admission Of DRC To EAC A Big Plus To The Region

 

By Tony Owori For Citizen Digital

The East Africa Community (EAC) has a new member in Democratic Republic of Congo (DRC) following its recent admission to the bloc.

According to Bidco Group and EABC Director Chris Diaz, the move to have DRC as a member state will open up trade opportunities to DRC and other countries in the bloc.

In a deep interview with Citizen Digital, Diaz unpacks what it means to DRC and member states.

What does the entry of DRC into EAC bring to the table?

The entry of DRC to EAC presents a great platform for trade, growth across the region and globally.

Exports are over 10 billion dollars annually, including diamonds, copper, cobalt, gold, Zinc, coffee and agro products including wood etc.

DRC has good natural raw materials and minerals that might be good for manufacturers in the region. Exporting raw materials will be cost effective in the EA Region. Investments in the region will increase good services and people resources to develop new industries, entrepreneurship and much needed employment.

How will DRC entry help in trade growth in the region?

Their entry into the bloc will help in eliminating barriers to trade for instance taxes and encourage conglomerate regional companies to expand and invest in new business.

It will be easy to export goods to the DRC and also import goods through the infrastructure, roads, railways, ports, airports etc in the region increasing cross border trade and regional integration.

The challenge will be reduction of poor quality counterfeit goods.

Meat and chicken products can be imported from neighbouring nations. Petro refined products and sulphur are imported in large quantities and a lot of clothes, electronics come from China and other nations plus Special assembling economic zones.

Over USD 300 million meat products were reported as imported per annum and demand is growing including dairy products and most FMCG products.

Does DRC feel threatened by already existing members?

Not in any way and perhaps it will be more benefitting from new banks investing enhancing financial solutions for large and small business to grow.

Opportunities for the region will trigger a wider market, give better priced products for the citizens while allowing more raw materials for industrial growth and DRC will gain by importing what they might need for business expansion, give more healthy product consumption and food security.

What are the business opportunities available to the other member states in this intergration?

It will be easier to open new business in DRC and likewise from DRC. Member states will find it easy to expand their business interests in a new added market with no trade restrictions.

I feel agri-business and manufacturing including new healthcare and manufacturing will increase product innovation competitiveness, better pricing and distribution models and intra-Africa trade will earn foreign exchange.

Employment will be the biggest gain plus banking solutions for business growth will allow SME growth in the region.

What’s your take on travel across the region, will business be cheap, quicker and simpler?

The intergration will allow Congolese citizens to travel freely to the other countries and trade will become much quicker, simpler and cheaper and training of resources plus development of a stronger private sector and better governance in business.

The greatest support will be inter-governmental online seamless custom unions, regional tracking of cargo online, and increased technology and internet penetration in the region.

Intra-EAC tourism will grow, and most countries will see more EA visitors for shopping visits, holiday to Coast resorts while tourism investments in DRC will increase new partnership ventures with international hotel and travel industry brands.

How will DRC gain by joining the regional bloc?

Joining the bloc gives DR Congo better and easy access to facilities such as ports, roads, trade portals, private sector business across East Africa.

Import taxes for goods accepted as being made in DR Congo will be removed or greatly reduced when entering the other countries, while transporting goods will become much cheaper.

Common tariffs and policies will enhance trade and employment from investments and culture exchange plus social advantages.

I would like everyone to enjoy talking Kiswahili with partners across the EAC regime markets. The exchange of culture, food, design, fabric, music and sports will be enhanced.

I just pray the grey parrots and wild animal poaching/trading will stop totally.

Will the DRC admission to EAC be a burden considering the already big regional GDP?

With expanded market comes expanded revenue streams and so the admission of DRC to EAC bloc will be rather a blessing than a burden and integrate with the African Continental agreement and create one of the strongest business and trade - Regional Economic community.

With the conflicts in Eastern Congo, how will EAC ensure there is peace so as not to affect trade in the region?

Trade between the EAC and DRC may actually reduce conflict in the eastern part of DRC as it would reduce smuggling as a result of greater cooperation. It will also present member states an opportunity to address the conflicts thus finding a solution.

We need peace and security, as DRC imports maize, milk, soaps, detergent, cooking oil etc... from other nations and EAC countries need a stable safe region

The other benefit is for investments in regional plantations, backward integration and value addition business models and new growth of factories in DRC too.

Products and services will be more affordable and give choice and innovative, competitive pricing and greater distribution to the citizens.

The over 100 million population will be a big market for FMCG and commodity, electronic products etc

Keeping in mind that, the World bank provides funds in excess of 250 million US dollars in 2021 to increase mining transparency and regulations. A lot of international support is required in DRC for economic and security integration, and development in the region.

Talk about process of transporting good across the region, will it be faster or easier?

The process of transporting goods across borders should become much simpler - currently authorities at the border points may operate different systems but with time, things will be harmonised thus making it even much easy and managed by online effective systems.

The air transport of passengers and cargo will greatly benefit and the aviation infrastructure will receive more grants and financial support to increase world class facilities.

The road network and market access may take time to grow and electricity and solar projects will increase energy availability, and moreso, regional integration will attract investment and increase education and healthcare services.

There will be international and regional investor partnerships that will progress the economies of the EAC members.

What are some of the mechanism that must be put in place to ensure trade between members and DRC improves?

Authorities should put regulations that favour all member states and make trade smooth and remove non-tariff barriers. Open skies to be allowed fully in the aviation industry.

Manufacturers to be given incentive and low costs of power and easy entry for start up, and new subsidiaries to set up smoothly.

Education institutions and cross nations especially of technology training, skills transfer, while security, peace and a positive environment will drive private sector investors to bring in new industrial growth.

Special economic zones and incentives will accelerate and stimulate economic development regionally to improve balance of trade for all members.

My view is positive, as the opportunities are many for all EAC members and coming at the right time given tough business times as the Russia-Ukraine war has increased costs and disrupted trade and supply chains.

Sunflower, Palm oil plantations, Soya, Canola, wheat, barley, green produce, among other products and well-managed agri-business business, will benefit Africa as a whole.