Business
Uganda in top 10 FDI recipients in AfricaPublish Date: Jun 01, 2014
Uganda in top 10 FDI recipients in Africa
  • mail
  • img
Uganda is a new entrant in the Ernst and Young top 10 Foreign Direct Investment (FDI) recipients in Africa in 2013
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
Ugandan sugar blocked entry into Kenya
Despite a recent deal allowing exportation of sugar from Uganda to Kenya, some Ugandan trucks are still blocked from entering East Africa’s biggest economy....
Bid documents for Kampala - Malaba standard gauge railway ready
Bid documents for the construction of the 238km Malaba - Kampala Standard Gauge Railway (Phase 1) have been approved by the contracts committee of the ministry of works....
Motorcycle owners appeal to URA over quack dealers
OWNERS and operators of motorcycles have appealed to Uganda Revenue Authority (URA) to protect them from unscrupulous dealers who are fleecing them...
Parliament told to speed up law on animal feeds
THE lack of a law that regulates and guides animal feed manufacturers is threatening the livestock sector in Uganda, according to a study conducted by the ministry of agriculture...
Lack of mentorship killing businesses
ABSENCE of mentoring programmes for businesses is the reason why many have failed to break even...
Shell says Q2 net profits triple to $5.307bn
Anglo-Dutch oil giant Royal Dutch Shell said Thursday that net profits more than tripled in the second quarter, boosted by asset sales and higher oil prices....
Is Uganda prepared to effectively tackle an Ebola Outbreak?
Yes
No
Can't Say
follow us
subscribe to our news letter