Uganda has been named among the first ten most attractive investment destination in Africa.
According to the Ernst and Young Attractiveness Program Report for May 2017, Uganda, despite the current economic squeeze that the country is facing is still among the best countries in terms of attractiveness to foreign investments.
Falling behind, Morocco, Kenya, South Africa, Ghana Tanzania, ranked in that order starting with the first, Uganda came before, Cote d’Ivoire, Mauritius, Senegal, Botswana.
Introduced in 2016, the Africa Attractiveness Index (AAI) measures the relative investment attractiveness of 46 African economies based on a balanced set of shorter and longer-term focused metrics.
Commenting on this ranking, the Executive Director Uganda Investments Authority Jolly Kaguhangire, said that this was a small achievement for the authority.
She attributed the improvement on good investment polices, conducive atmosphere and the ease of doing business in Uganda.
“Despite our challenges which we are working on currently, Uganda is still an attractive place to invest in because the government policies are favorable and we are working on challenges like electricity and corruption plus infrastructure development. We are hoping to improve our position and became among the best three,” Kaguhangire said.
According to the same report, there was a 6.9% increase in FDI projects in Africa from 2015; South Africa maintained its position as the continent’s leader from an FDI projects perspective.
There was a strong pick-up in FDI activity in the consumer products and retail (CPR) sector, where projects more than doubled from 19 in 2015 to 41 in 2016.
Over the past year, foreign investors tended to gravitate toward the larger, more diverse economies in Africa.
These include South Africa in the south, Morocco and Egypt in the north, Nigeria in the west and Kenya in the east.