Business
Uganda in top 10 FDI recipients in Africa
Publish Date: Jun 01, 2014
Uganda in top 10 FDI recipients in Africa
Uganda is a new entrant in the Ernst and Young top 10 Foreign Direct Investment (FDI) recipients in Africa in 2013
  • mail
  • img
newvision

By Samuel Sanya

Uganda is a new entrant in the Ernst and Young top 10 Foreign Direct Investment (FDI) recipients in Africa in 2013, an indication of the country’s strong position in attracting investment.


In 2013, both West and East Africa surpassed North Africa for the first time according to the report titled “EY’s attractiveness survey Africa 2014; Executing growth.”

The report noted that Uganda has had solid economic growth and a rapidly expanding population as some of its appealing factors. According to the report top sources of foreign direct income into Uganda in 2013 were Kenya, the UK and India.

“One multinational that has recently increased its presence in the country is SAB Miller, which opened its second brewery in Uganda in 2013. Oil fields and the agricultural sector in Uganda are also attracting significant investor attention,” the report notes.

The report noted that in 2013, the number of new FDI projects in Africa declined for the second consecutive year, by 3.1% leading to lower job creation resulting from FDI projects largely due to political uncertainty in North Africa.

Despite the lower number of projects, the monetary value of capital investment into Africa grew by a healthy 12.9%, with a higher average project size of $70.1m (sh175b) in 2013, from $60.1m (sh150b) the year before.

FDI projects into Kenya increased by more than 40%. In 2013, Kenya attracted the second-highest number of FDI projects, only second to South Africa. Increasingly, investors have been targeting Kenya as a springboard to growing East African consumer markets.

Kenya’s economy benefitted from the recent discovery of oil, the country’s large, skilled and youthful population and the building of a $14.5b (sh36 trillion) information technology hub, called Konza Technology City, outside Nairobi to target the growing number of software developers. Tanzania was tipped for recently discovering gas reserves which are propelling investor interest.

RELATED ARTICLES

Include all people in economic growth-World Bank

Uganda economic growth seen gaining steam next year

China hails Uganda on economic growth

IMF tips Uganda on economic growth benefits sharing
 

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 digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Fresh row hits $8bn railway deal
Fresh controversy is stalking the over $8b Standard Gauge Railway deal, with the company that lost the deal seeking audience with the President....
BATU ends tobacco leaf business
British American Tobacco Uganda (BATU) will discontinue its leaf growing and export business after 86 years with a new player set to enter the market at the end of the year....
Police close illegal micro finance; over sh20m in savings lost
Police in Njeru Town Council has closed an illegal micro finance bank over defrauding unsuspecting members of the public over sh20m...
More oil resources found in Albert region
The Petroleum Exploration and Production Department has said that the oil resource confirmed is now 6.5 billion barrels from the fields studied....
Chinese firm CHEC given $8bn railway deal
The Government has finally given away the giant and lucrative deal to upgrade and expand Uganda’s railway network to standard gauge to a Chinese firm....
Tourism industry goes professional
IN a bid to make Uganda a preferred destination for tourists, the Ministry of Tourism is in advanced stages of professionalizing the chain of service...
Do you think banning the sale of single cigarette sticks will help regulate tobacco production?
yes
No
Can't Say
follow us
subscribe to our news letter