New vision for development in East Africa will build crisis resilience

Facing resurgent conflict, fuel inflation and food shortages, the heads of state of the East African Community (EAC) rallied around a new vision of regional development at their latest summit in Tanzania in late July. Leaders agreed on the importance of unlocking the vast economic potential of its Common Market, stretchinf from the Indian Ocean to the Atlantic following the Democratic Republic of the Congo (DRC)’s recent accession to the bloc, by ramping up intraregional trade and foreign investment.

This revolutionised Common Market will complement the EAC’s traditional growth model, based on the extraction and export of its raw materials, with a diversified regional economy driven by strong homegrown industries. This more autonomous economy, founded on thriving transport, agriculture and renewable energy sectors, will help build the region’s resilience to external shocks while creating local jobs and fuelling East Africa’s green transition.

Tapping into the DRC’s potential

With its 90-million strong population and rapidly-growing economy, the DRC is an ideal place to start creating the EAC economy of the future – a potential which its neighbours have already recognised. Over 25 Kenyan firms – from banking and solar energy to construction – have recently launched new operations in the EAC’s youngest member or committed to invest up to $1.6 billion as part of a trade mission organised by the Congolese and Kenyan governments.

This Kenyan wave of investment reflects investors’ renewed confidence in the DRC cultivated by reforms under the government of President Félix Tshisekedi, which have prompted the World Bank to accelerate its investment programme. Despite unrest in the DRC’s east instigated by the M23 rebel group—allegedly backed by Rwanda—the majority of the DRC’s territory remains stable. President Tshisekedi has taken a leading role in quelling the M23 insurgency, most recently through hosting a heads of state summit of the Economic Community of Central African States (ECCAS) and meeting Rwandan President Paul Kagame for peace talks.

The DRC can make an even greater contribution to the EAC’s prosperity with adequate investment into infrastructure development, particularly power and transport connections. The World Bank’s $500 million Transport and Connectivity Support Project to develop sustainable transport links within the DRC is a promising start, but the EAC will need to generate funding to build the cross-border links with the DRC which could be the foundation for the growth of the region’s industries, as well as its long-term adaption to climate change and reduced reliance on critical imports.

A tech-driven sustainable agricultural sector

Paired with improved regional transport connectivity, a boom in agricultural production would help protect the region from food shortages and inflation triggered by the war in Ukraine and climate change-linked drought. During his term as Chair of the African Union last year, President Tshisekedi identified the “great potential…of digital technologies and services for farmers,” highlighting how innovative farming initiatives funded by the African Development Bank had already helped nearly 20 million farmers across Africa boost crop yields by 60%.

With its fertile land and large, youthful workforce, the EAC region is particularly well placed to lead a tech-driven agricultural revolution. For example, an estimated 70% of Uganda’s working population is employed in agriculture, but the sector’s potential has been held back by a lack of innovation. Recognising these missed opportunities, Earth Observing System Data Analytics (EOSDA), a global AI satellite imagery company, has engaged with Ugandan farmers to explain the benefits of precision farming, which uses advanced digital technologies, including drones, ground sensors and satellites, to optimise crop and soil management, allowing farmers to boost yields while reducing water and fertilizer use.

Ambitious levels of investment through the Africa Adaptation Acceleration Programme (AAAP) will be essential in widely deploying precision farming technology in Uganda’s agricultural sector. This investment would not only help farmers secure regional food security over the long-term, but also fuel a thriving sector with new jobs accessible to the entire EAC Common Market and bolster the climate resilience of the region by shortening supply chains and reducing resource consumption.

Increasing renewable energy production

As with the food crisis, the war in Ukraine has exacerbated a global energy crisis that has revealed a problematic overreliance on imports of critical resources. In realising its new vision for development, the EAC should therefore prioritise investment in renewable energy, particularly considering that the region has one of the lowest electrification rates worldwide.

Geothermal power has emerged as a potential key driver of East Africa’s green transition and future energy security. Kenya is a global leader in geothermal energy generation, and already meets nearly half of its energy demand with this innovative source. The Kenyan Government has taken proactive measures to create an appealing investment climate and displayed leadership that could help spread geothermal energy across the region.

EAC neighbours Rwanda and Tanzania have also discovered geothermal resources under the Rift Valley that runs across the region, and both have turned to Kenya’s state-owned Geothermal Development Company for technical support in developing their industries. While this technology is more expensive than solar and wind and involves a degree of financial risk in the initial exploration stages, it is a more reliable source of energy and highly scalable. With the right level of investment, there is clear potential for the development of a dynamic geothermal industry that meets the EAC’s energy needs while generating socioeconomic and environmental benefits across the Common Market.

While East Africa is facing significant challenges, it benefits from strong regional leadership, vast human potential and natural resources that can be mobilised to build more diversified and resilient economies. The EAC heads of state have taken an important first step in agreeing a shared vision for the future development of the region, but the time to act has come. Realising this vision will require significant time, effort and resources, yet the long-term benefits it will deliver will be worthwhile.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes