According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report released on June 26th, Uganda re-emerged the frontrunner recipient of Foreign Direct Investment (FDI) in the East African Community ahead of Tanzania which had beaten Uganda to this position since 2008.
This was revealed in a press release signed by the Executive Director of Uganda Investment Authority Eng. Dr. Frank Sebbowa.
In the EAC, flows to Uganda, Tanzania and Rwanda remained at high levels compared with Kenya and Burundi which recorded a drop.
The Foreign Direct Investment (FDI) flows to the region accelerated by 50 percent in 2012 to USD 4 billion compared with 3 billion in 2011.
Inflows to Uganda rose for the third year running by 92 percent hitting a record of USD 1.72 billion making Uganda the highest FDI recipient in 2012.
Tanzania lost its position as frontrunner Foreign Direct Investment recipient in 2012 accounting for 44 percent of total EAC FDI compared with Uganda’s 45 percent.
FDI flows to Tanzania grew by 39 percent reaching USD 1.71 billion compared with USD 1.23 billion in 2011.
Kenya maintained its position as the third FDI recipient in the region but the flows dropped by 26 percent to USD 259 million.
Rwanda recorded USD 160 million up from USD 106 million in 2011 while Burundi recorded USD 1 million a decline from USD 3 million in 2011.
The position performance of the EAC and Uganda in particular attributed to the relatively strong economic growth of about 5.1 percent in 2012 and rise in investments in the oil sector, manufacturing and services.