East African bloc 'holds huge potential' for Thai investment
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The East African Community (EAC) has urged Thai enterprises to invest in the region as there is great demand for consumption and strong economic expansion.
After a recent visit by a Thai team to explore the African market, Surasak Riangkrul, deputy director-general of the Commerce Ministry’s Foreign Trade Department, said it foresaw bright opportunity for Thai investors in many countries, particularly Kenya, Tanzania and Uganda.
Currently, the EAC comprises those three countries plus Burundi and Rwanda.
Surasak said governments in those countries had clear policies to promote foreign investment and wanted Thais to invest in many sectors.
Potential investment areas for Thais include farm goods and food processing, garments, jewellery and ornament manufacturing, and infrastructure development.
Other areas with potential for exports are consumer goods, electrical appliances, electronic goods, construction materials, and automobiles and parts.
“The EAC countries have great potential to become an offshore manufacturing base for Thailand as well as a new market for exports. The community has reduced tariffs among member states to zero. Thai investors can enjoy those privileges if they invest in any of the countries in the group,” Surasak said.
He pointed out that the continent had many advantages, including rich natural resources, high demand for consumer goods, and low wages, which should encourage Thailand to seek opportunities there.
The market size is also expected to increase, with the current combined population of 133 million almost doubling to 250 million in the future as Congo and Sudan are expected to join the economic bloc soon.
The EAC aims to widen and deepen cooperation among the partner states and other regional economic communities in, among others, the political, economic and social fields for their mutual benefit.
Thailand’s trade value with the three major markets was worth Bt7.65 billion in the first 10 months of this year, an increase of 23.67 per cent compared with the same period last year. Major export products are sugar, plastic, cars and parts, while major import goods are chemical products, fabrics, jewellery, silver and gold.
