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
Finance regrets lack of support to innovators
Finance minister Maria Kiwanuka has regretted that young innovators have been left to fend for themselves many times lacking the opportunity to interface with venture capitalists and possible financiers for their brilliant ideas....
Museveni to launch Soroti Fruit Processing Factory
President Yoweri Museveni will today launch the proposed fruit-processing factory in the Eastern region, which Government expects to boost employment figures and also create a viable market for the fruits, especially mangoes and oranges of Teso farmers....
Uganda
Uganda oil industry has entered the most crucial and most lucrative phase, energy ministry officials have said....
Kenya
It was a symbol for Kenya's growing well-heeled middle class: a vast supermarket crammed with flat screen televisions, imported wines and chilled cabinets of cheese and meats....
Aviation: Fastjet secures Entebbe, Dar route
FastJet completes the first of many flights between Dar es Salaam and Entebbe, reducing a trip of 12 hours to just over an hour on top of boosting tourism, business and ties between Uganda and TZ....
Private Sector to implement child-friendly business principles
The Ugandan business community has signed up to the implementation of international principles to respect children’s rights, eliminate child labour, provide young workers, and ensure safety of children....
Should bride price be made optional?
Yes
No
Can't Say
follow us
subscribe to our news letter