EAC Continues To Attract FDI

The East African Community (EAC) region continues to be a popular recipient of foreign direct investment (FDI) flows, according to the World Investment Report 2019.

The report, compiled by the United Nations Conference on Trade and Development (UNCTAD), points to increased FDI flows into EAC member states during 2018.

FDI into Tanzania have grown by 18 per cent to reach $1.1. billion, while Kenya has recorded growth of 27 per cent to $1.6 billion. Uganda saw the biggest percentage increase, however, at 67 per cent to reach $1.3 billion.

Meanwhile, FDI into Ethiopia has fallen 18 per cent. However, it still remains the biggest recipient in the region, attracting $3.3 billion.

According to the report FDI was targeted at various sectors, ranging from manufacturing to hospitality. Commodities continue to be a big pull on the African continent.

Speaking on the trend the Secretary General of UNCTAD Mukhisa Kituyi commented, “The African Continental Free Trade Area agreement will bolster regional co-operation. This, along with upbeat growth prospects, augurs well for FDI flows to the continent.”