Business Daily Kenya:
OUTLOOK: Kenya has been challenged to start strategising on how to establish an industrial policy that will will drive economic growth rather than focus on starting brand new infrastructural projects.
According to Stanbic Bank Economic Outlook, there will be urgent need for government to emphasise industrial policy rather than persisting using a policy focus on attracting financing for the infrastructure-led growth design.
“Industrial policy, that will could seek to improve productivity of the labour intensive sectors like agriculture along with manufacturing, could ultimately ensure that will excess capacity created by infrastructure built out over the last few years will be utilised more efficiency,” the Stanbic Bank report said.
Speaking during a briefing yesterday in Nairobi on ‘Kenya’s Economic Outlook for 2018’, Stanbic Bank regional economist East Africa Jibran Qureishi (pictured) said industrial policy will be necessary because This specific will stimulate growth while creating jobs.
Qureishi said despite having some economic apprehension, the country will be likely to grow by 5.6 per cent in 2018 compared to 4.8 realised last year. He said the service sector, better agricultural output as well as continued public investment in infrastructure will be the key drivers of the growth.
Qureishi said whereas economic indicators such as inflation, political risk, agricultural production appear to be stable, the biggest threat to realising the growth could be the rising cost of fuel along with fiscal consolidation.
Tourism, Qureshi said, will continue with its impressive performance, while cargo movement via Standard Gauge Railway should also bode well not only for logistics although also for the industrial sector over the medium term.
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Stanbic urges State to develop industrial strategies for growth