Uganda and Tanzania attract highest FDI in EACPublish Date: Jan 03, 2014
Uganda and Tanzania attract highest FDI in EAC
  • mail
  • img
Uganda is looking to start producing oil and is expected to attract more investments. FILE PHOTO/Enock Kakande

By Billy Rwothungeyo

Buoyed by vast energy resources, Uganda and Tanzania attracted the most foreign direct investment in 2012 in the East African region, according to the State of East Africa 2013 report.

“East Africa attracted foreign direct investment (FDI) inflows of $3.9b in 2012, a $1.8b increase from $2.6b in 2011. With a combined total inflow of $3.4 billion, the two main energy rich countries of Uganda and Tanzania received 90% of the investment inflows into the region,” the report said.

Rwanda recorded an increase of $54 million in FDI, while Kenya’s shrank by $76 million during the period and Burundi continued to receive modest investment inflows.

Though the report says that the focus on the extractives sector has the possibility of overshadowing other investments into East Africa, investments in healthcare, financial services and the production of cement were recorded in 2012.

The health sector seems to be attracting Indian investment in medical facilities such as the recently announced $40 million project in Rwanda by the Madras Institute of Orthopedics and Traumatology, according to the report.

The $69 million acquisition of Cimerwa (Rwanda) by Pretoria Portland Cement (South Africa) was the second largest merger and acquisition made in a developing country in 2012.

Earlier this month, Deloitte released its African Construction Trends Report 2013 that shared similar insights.

It said that the recent discoveries of oil and gas in East Africa are attracting foreign investments that are boosting infrastructural developments in the East African region.

The quests for better transport infrastructure, reliable energy are also driving this growth, according to the report.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Economic giants China and US talk trade
The US and China discussed trade and business concerns Thursday as the world''s two biggest economies held wide-ranging annual talks....
UNAFFE asks govt to revise taxes on farm inputs
The president of the Uganda National Farmers Federation (UNAFFE) Charles Ogang has requested government to revise taxes on agricultural inputs....
Women encouraged to join agribusiness
Local organisations involved in boosting job creation efforts are considering pushing for the increased the number of women in the agribusiness sphere, a move directed at mitigating the countries levels of unemployment....
Court blocks manufacture of Comfoam mattresses over counterfeit
Court blocks manufacture of Comfoam mattresses over counterfeit. Industrialists are hoping that efforts by the courts, regulators and stringent laws will help curb the rampant counterfeiting that is hurting their sales....
UAE Exchange offers Western Union services in Uganda
UAE Exchange, the leading global remittance and foreign exchange brand joins hands with Western Union, the leading instant money transfer service to add more convenience to its customers....
Government moves to curb fake agro-inputs
Government has set up a department in the agriculture ministry as one of the measures to counter the rampant sale of fake seeds and agro-inputs in the market....
Who do you think will win the world cup?
follow us
subscribe to our news letter