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UGANDA, TANZANIA TOP EA IN ATTRACTING FOREIGN FUNDS



Tanzania and Uganda have widened their lead over Kenya in the race for foreign direct investments (FDI) in the East Africa region, as lengthy licensing procedures and sluggish commercial dispute settlement turn multinationals away from Nairobi.

New data released by the United Nations conference on Trade and Development (Unctad) shows Uganda topped the region in the attracting FDI last year, followed closely by Tanzania, on the back of increased investments in the oil and gas sector. FDI to each of the two countries was seven times larger than what Kenya received in 2012, a lag analysts blamed on heightened political tensions and delays in removing cumbersome licensing procedures.
In Uganda, most funds went into the oil, gas and mining sectors.
“Recent natural resource discoveries contributed to the increase in FDI inflows to East Africa. This includes investments in gas reserves in Tanzania and oil fields in Uganda”, said Unctad in the World Investment Report 2013.