Despite the upheavals experienced on the economic trajectory of our republic, manufacturing has continuously emerged resilient against an array of both internal and external shocks which include the fluctuating shilling, rising energy cost, geopolitics among many others. What next, one might ask?
First, is to understand the role manufacturing plays in a country’s basket of success. Manufacturing is the cornerstone of economic development and plays a critical role in shaping the prosperity of nations.
This sector, encompassing a wide range of activities from production of goods to the application of technology, has far-reaching impacts on various facets of a country’s socio-economic landscape.
Therefore, a multi-stakeholder approach involving the government, private sector players and the citizenry is key in unlocking greater potential for this sector.
This can be achieved through formulation and enaction of sound policies, utilisation of the special export zones and export processing zones, friendly tax regimes that spur growth in the sector and adherence to the ESG framework that has since been adopted by many corporations.
Kenya’s fortune lies in its enormous clean or renewable energy potential with about a 90 percent capacity from geothermal, wind and solar.
Electricity lies at the heart of operations in the manufacturing sector and this if properly utilised will continually cement us as the economic powerhouse in the region.
Also, the government’s move to ensure value addition in the agriculture sector was an excellent undertaking as this has enhanced the revenue gain from exports.
Zero rating and tax exemption of goods produced or manufactured in the country have enabled the micro, small and mid-sized enterprises be the largest employer thus, a formidable player on the country’s balance sheet.
With the establishment of the African Continental Free Trade Area (AfCFTA) and the recent COMESA-EAC-SADC Tripartite Free Trade Area agreement, new opportunities emerge. The dream of realising a pan-African ambition is taking shape.
We should be ready to seize this opportunity to expanding across East Africa, COMESA and beyond. Through strategic expansion, partnerships, innovation and a strong commitment to sustainability we realise the contribution to the continent’s economic integration and growth.
The greatest asset has always been investing in people who cut across the stakeholder divide which involve the customers, employees and suppliers.
Despite, the numerous challenges facing the sector, ranging from navigating complex regulatory landscapes, enactment of unfavourable tax regimes and soaring energy costs, it is imperative that we continuously deliberate and chart a favourable and inclusive path to realising Vision 2030 and the government’s Bottom-Up Economic Transformative Agenda.
The writer is the Managing Director of Hacco Industries, a leading manufacturer in personal and home care products
