Kenya will hold consultations with key development partners on Thursday 3rd October to discuss the implementation of its new Holistic Productive Capacities Development Programme designed by UN Trade and Development (UNCTAD).
This effort aims to reshape the country’s economic future.
According to a statement by UNCTAD, the Prime Cabinet Secretary Musalia Mudavadi will lead other cabinet secretaries and senior government officials in discussions with donors, UN representatives, the private sector and other stakeholders to open a fresh chapter in Kenya’s pursuit of long-term, sustainable economic growth.
“This programme marks a transformative moment for Kenya’s economic future,” said Paul Akiwumi, UN Trade and Development’s director for Africa, least developed countries and special programmes. “It’s about building strong economic foundations and empowering people, businesses and institutions to innovate, compete and thrive.”
New development paradigm
The need for a new development paradigm is more urgent than ever, as past and present commodity-driven growth models have failed to deliver inclusive growth and sustainable development in many countries, including Kenya.
Industrialization and economic transformation remain elusive and vulnerability to shocks persistent, limiting poverty reduction and job creation.
Kenya has achieved above-average growth rates in Africa, which exceeded 5pc for the 15 years preceding the COVID-19 pandemic, enabling the country to reach an estimated GDP per capita of $2,082 in 2021.
Despite this progress, the country faces daunting economic challenges, with two thirds of the population living on less than $3.20 per day.
UNCTAD says, the upcoming consultations will focus on addressing the challenges through a new development paradigm of building productive capacities, which include essential inputs such as skilled labour, energy, transport and ICT, to position the country as a competitive and innovation-driven economy.
Kenya’s Vision 2030 hinges on bridging the country’s productive capacities gap a crucial factor in transforming its economy from one reliant on low-productivity sectors to a diversified and high-value economy.
UN Trade and Development’s assessments underline the urgency of bolstering productive capacities, without which Kenya’s ambition for economic transformation and greater job creation risks being stifled.
Holistic Productive Capacities Development Programme: A bold vision
The 10-year programme set to commence in 2025 is aimed at bolstering economic diversification, industrialization, infrastructure enhancement and private sector empowerment, among other areas.
The upcoming consultations seek to secure $20 million in funding over the next decade to support this transformative programme, which will focus on five key pillars: Economic diversification and value addition, nfrastructure and environmental sustainability and ICT for digital transformation.
These as well as private sector growth and skills development and policy coordination.
The consultations will bring together Kenyan institutions and international development partners to chart the path forward.
They will examine how to harness Kenya’s comparative advantages in agriculture, manufacturing and technology, while aligning with the African Continental Free Trade Area to boost regional and global trade.
Private sector at the centre
Private sector development is at the heart of the programme, which seeks to empower micro, small and medium-sized enterprises, enhance business environments and attract domestic and foreign investment.
As Kenya continues its rapid infrastructure development, particularly in transport, logistics and energy, the programme aims to turn the country into a regional hub for manufacturing and value-added processing.
A collaborative effort
UN Trade and Development’s long-standing expertise in using trade, investment, finance and technology as vehicles for sustainable development will be critical to the success of the programme, which will integrate key stakeholders from various sectors, ensuring a broad-based and inclusive approach.
A high-level steering committee and a technical taskforce will oversee the implementation of the programme, ensuring seamless coordination and execution.
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