Let’s find ways to make rural areas economic hubs

By , August 13, 2024

Part of the reason China has become a successful economy that has improved the quality of life of its citizens more than tenfold over the last 30 years has to do with the deliberate policy interventions that its government has made to transform rural areas into economic hubs.

Cities like Shenzhen, Shanghai, Hangzhou and Guangzhou are today renowned for specific economic activities that have transformed their respective regions from poor, rural backwaters ravaged by poverty to commercial centres that are redefining global commerce. For instance, Shenzhen is China’s epicentre of innovation. It is home to such global brands as Huawei, which started off as a mobile phone company but has now transitioned into a major player in the global energy and communication company, thanks to innovations such as its solar-powered batteries and investments in 5G technology and data centres. A different story can be told for each of the above regions which are now fostering both collaboration and competition at home and abroad.

Over time, the transformation of these regions has also changed the narrative about China, which is now a leading global player that countries like Kenya would do well to learn from if we are to achieve Vision 2030 goals and make it a middle-income country with a high quality of life for its citizens within the next seven years.

Success stories such as those about China must compel us, as citizens, to think about how, at an individual level, we can empower ourselves to redefine rural areas so that we cannot only feed ourselves at the subsistence level but also transform these areas into hubs that create wealth for investors and jobs for everyone else.

This need was brought home very forcefully for me during a recent visit to the Tafaria Castle and Centre for the Arts, an investment that has not only transformed the local economy but continues to attract visitors from Nairobi and beyond. Yet, only a few years back, this area was a desolate land that could hardly yield much from the poor soils. Indeed, it was not associated with any notable contribution to the national economy or culture. Today, by contrast, more than 40 per cent of the visitors to Tafaria are schoolchildren, thanks to the collaboration between the centre and the National Museums of Kenya, which has taken the bold step to devolve its services.

For far too long, we have been wringing our hands in the hope that the government will do the heavy lifting for us. As a result, many of us have failed to take even small steps to address the gaps we have identified in our respective markets or areas of specialisation, waiting instead for the day someone else will come and do what we know ought or needs to be done.

To move forward, Kenya as a country needs synergy between the creativity of its citizens and the policies adopted by its governments, both national and devolved. Even as citizens take the bold step to empower themselves and invest in ideas that can transform their rural areas, it is imperative that policymakers plug in, zone the country the way China has done, and offer interventions that will spur local investment, production and job creation.

Again, we do not have to reinvent the wheel in this regard. Russia has offered a template for countries seeking to invest in import substitution, which is what Kenya badly needs. When Western conglomerates left Russia after it invaded Ukraine, it challenged its citizens to set up companies that would provide similar goods and services. The net effect of this policy has been that the day the conglomerates decide to return to Russia, they will find that their cheese has moved.

So, what can we learn from China and Tafaria? That we have what it takes to transform our economies. What we need badly is to challenge local investors to take the leap of faith, and policymakers to put in place the right environment for local investment and for us to create value chains that will feed off the emerging investments.

— The writer is the Editor-in-Chief of The Nairobi Law Monthly and Nairobi Business Monthly-

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