UN Report: FDI Inflows to East Africa Increase

{{Member states of EAC bloc, have recorded a surge in Foreign Direct Investiments FDIs according to latest data released by the New United Nations Conference on Trade and Development (UNCTAD) 2013 report.}}

Data shows EAC states received a combined $ 3.9 billion in FDIs in 2012 representing a 48.71% rise from the $ 2.6 billion registered in 2011.

Rwanda’s FDIs rose by a whooping 50.94% to $ 160 million in 2012 from $ 106 million.

For Burundi, which lagged the five East African countries, attracted $ 1 million, representing a 66.67% fall from $ 3 million in 2011.

Uganda is in the lead in FDIs which jumped by 92.51% to $ 1.721 billion from $ 894 million in 2011. The report attributes the surge in FDIs in EAC states to the recent Oil discovery in Uganda and vast gas reserves in Tanzania.

According to the data, Tanzania attracted $ 1.706 billion in 2012, a 38.81% increase from the previous year’s $ 1.229 billion.

However, Kenya’s FDIs dropped by 27.04% to $ 259 million from $ 355 million. This lag in Kenya, analysts blamed it on political tensions and delays in removing cumbersome licensing procedures.

FDI to Uganda and Tanzania was seven times larger than what Kenya received in 2012.

{contact author: patrick@igihe.com}