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Entrepreneurs have been asked to seek partnerships and actively pursue available opportunities if they want to thrive in their operations in East Africa. With increasing levels of uncertainties in the region, companies are struggling with pressures of geopolitical tension, a global economic slump, climate change and the impacts of the pandemic.

Peter Ngahu, Regional Senior Partner, Eastern Africa at PwC, warned that if unaddressed these challenges pose a huge risk and could have the adverse effect of slowing down the optimistic economic growth projections for the region.

“Fortunately, businesses in the region are fast embracing collaboration within and beyond their industries,” Ngahu who is also the President of the Board of the American Chamber of Commerce Kenya (AmCham) said.

According to PwC East Africa’s CEO Survey 2024, cross-industry collaborations is among the top avenues that businesses in the region are turning to, for continuous reinvention that is necessary to tackle emerging challenges and attain successful transformation.

This is in addition to deploying technology and pursuing climate-friendly investments.

According to Ngahu history has repeatedly proven, all over the world, that impactful strides are made when businesses come together and that there is strength and intrinsic value in the business community convening, coalescing, collaborating, and conversing on pertinent issues affecting trade and investment.

Investment climate

“Collectively advocating for a business-friendly investment climate increases their voice and is more likely to trigger action as opposed to lone attempts. Such collaborative initiatives also have the potential to unlock opportunities for individual enterprises,” he stated.

The recently held fourth edition of the AmCham Business Summit is one such vital platform that has repeatedly demonstrated value for the business community in East Africa and the US.  Over the years, the annual summit has created great trade and investment opportunities, bringing together businesses and governments from across the region together with their counterparts from the US to foster mutual economic growth and prosperity.

According to Ngahu, the summit has over the time facilitated business-to-government engagements, serving as a conduit for constructive dialogue and partnership between the private and public sectors and delivering tangible impact through collective efforts.

“This is translating into real progress in improving Kenya’s business climate,” he said.

Some of the measures effected since last year, the PwC boss noted include the elimination of VAT on exported services, elimination of domestic equity requirement for ICT companies, removal of tax on stock-based compensation for employees of startups, commitment to adhere to the OECD two-pillar solution to Digital Service Tax when it is finalised.

This is besides steps to revitalize Special Economic Zones to maximize competitiveness. These have significantly boosted trade and investment and opened up the country for additional foreign direct investment, spanning various sectors.