The 2008 Business Climate Index (BCI) report shows that the business environment in East Africa has worsened from what it was last year.

The communication issued to Daily Monitor from the East African Business Council (EABC) Secretariat in Arusha Tanzania said; “The overall Business Climate Index across the East African region in 2008 declined to 44 down from 51 points in 2007”.

The 2008 report found out that Ugandans are the most positive business leaders with an index of 55, followed by Kenyans and Rwandans (45), Tanzanians (42) and trailing behind are Burundi’s business leaders with an index of 32.
The majority of business leaders single out access to affordable and reliable telecommunications as the primary importance in business, access to water and security are in second and third place respectively.

Transport and energy are also important business factors which are currently underperforming across the region.
The Executive Director of East African Business Council, Charles Mbogori, said: “The private sector in East Africa has the capacity to grow and become globally competitive. But this cannot happen without transformation of the current business environment.” “EABC is committed to addressing the issue of investment and business climate through constant monitoring and reporting.”

Started in 2005, the BCI tracks the status of identified Non-Tariff Barriers (NTBs) in the region, assessing the business climate/confidence in the region, and documenting the expectations of the business community regarding business climate in the future. “As the EAC progresses to the 4th and final round of tariff reduction in 2009, it is imperative that NTBs are eliminated in as far as possible to ensure that as we progress to a fully fledged Customs Union by 2010, the benefits of the implementation are fully realised by the business community,” Mr Mbogori said.   

The EABC will today, February 9, release results of the 2008 BCI survey at Imperial Royale Hotel, Kampala. The event will begin with key note addresses from the State Minister for Trade, Wildlife, and Antiquities Eng. Nelson Gagawala Wambuzi, EABC Executive Committee Member Mr Simon M.S Kagugube and a presentation from Steadman Group, the firm that carried out the study on behalf of EABC.

There will also be remarks from Acting Permanent Secretary of the Ministry of Tourism, Trade and Industry Oreno Atipo, Mr. Kassim Omar, the Vice President of Uganda National Chamber of Commerce and Industry, and Mr Mbogori.

EABC is an apex body of business associations in Kenya, Uganda, Tanzania, Rwanda, and Burundi with the aim of promoting private sector’s regional and global competitiveness in trade and investment.