Stakeholders from the distribution sector in the East African Community (EAC) region convened in Kenya to address the challenges confronting the industry. The conference, organized under the EU-EAC CORE programme, aims to develop a strategic action plan to overcome barriers to growth and development. Participants include representatives from wholesale trade services, retailers, franchising sectors, public and private organizations, business associations, distribution firms, and e-commerce platforms.
The forum marks the inaugural EAC Peer-to-Peer Learning Conference, focusing on regulatory frameworks and growth strategies.
A diagnostic study reviewed at the conference revealed that restrictive investment laws are hampering the entry and operations of wholesale and retail firms across EAC partner states. Major challenges identified include burdensome administrative requirements, weak links with local suppliers, high investor exit rates in the retail sector, and insufficient industry skills.
The peer-to-peer learning approach aims to facilitate knowledge exchange between countries with successful reforms and foreign entities with advanced distribution practices, emphasizing inventory management, skill enhancement, and integration with local suppliers.
In her keynote address, Ms. Elizabeth Miguda, Deputy Director and Head of Regional Trade at Kenya’s State Department of Trade, highlighted the significant opportunities for entering new markets within the EAC through the liberalization of the distribution sub-sector. She stressed the importance of efficiency and competition in the distribution system to lower prices and reduce price distortions.
Ms. Miguda also addressed ongoing sector challenges, such as fragmented regulatory obligations, lack of business and management skills among entrepreneurs, and insufficient digital skills to keep pace with online distribution channels.
Representing the EAC Secretary General, Ms. Veronica Nduva, Ms. Marie Angelique Umulisa, Principal Trade Officer and Head of International Trade at the EAC Secretariat, underscored the importance of distribution services, which account for approximately 20 per cent of global services trade and contribute significantly to GDP in the EAC region.
Ms. Umulisa emphasized that the conference is a crucial platform for knowledge exchange and collaboration, aiming to enhance operational efficiency, create economies of scale, and offer consumers better pricing, quality, and a broader range of options. The conference, concluding tomorrow, will continue to facilitate knowledge exchange among countries and entities with advanced distribution practices.