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.