Finance Ministers, Central Bank Governors and Chief Executive Officers of leading companies in East Africa met in Arusha, Tanzania to discuss how countries in the region can cushion their economies against the negative effects of the global financial crisis.
 The one-day meeting organized by the East African Business Council (EABC) was convened to identify problems, discuss solutions and make recommendations on how East African economies can best deal the ailing private sector.
“We want to seek local solutions to this crisis,” Charles Mbogori, the Executive Director of EABC, said. “Part of the recommendations will be presented at EAC Summit, and EAC Council of Ministers.”
EABC, the 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, convened the meeting in the light of the current global financial crisis.
The financial crisis currently affecting world major economies has rapidly evolved into a global credit crisis resulting in a number of bank failures and declines in various stock indexes, and commodities worldwide.
The crisis that begun with failures of large financial institutions in the United States has pushed the world’s major economies into a recession, and presents a significant risk to East African economies, which depend on developed economies for aid and trade.
Experts predict that East African economies will be hit as earnings from major exports such as tea, coffee, cut flowers, and cotton fall as consumers in export markets reduce spending.
Tourism earnings and remittances from people in the Diaspora have already begun to decline as companies cut jobs to reduce expenses.
In addition, the crisis has affected local currencies as investors transfer vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc.
“The meeting will give us an opportunity to meet as East Africans and discuss the problems affecting us and also seek solutions to the problems,” Mbogori said.
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.
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