More East Africans are investing in Uganda than other EAC member states 

More East Africans have in the five years to December 2023 invested in Uganda than any other East Africa Community (EAC) member state, according to the EAC Trade and Investment Report.

The report, which measures intra-EAC investments among seven EAC member states including Burundi, DR Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda, indicates that in the five years to December 2023, East Africa grossed $2.71b (Shs9.92 trillion) from 345 intra-regional projects, of which, Uganda attracted more than 38 percent to achieve an investment value of $1.04b (Shs3.8 trillion) from 67 projects. 

Kenyan companies and individuals invested more in Uganda than any other country in the region, investing $606.22m worth of capital in 50 projects. It was followed by Tanzania and Rwanda with investments worth $164.33m and $44m, respectively. 

The report further indicates that in the five years, intra-EAC investments resulted in 194,858 jobs in Uganda, of which the majority were created in 2019 and 2022. Last year, the country, however, experienced a 67 percent contraction in created jobs from 52,834 to 17,212.

The report, however, doesn’t explain the reasons for the reduction.

Uganda’s performance highlights the country’s positive growth prospects, with the IMF projecting that the country’s gross domestic product will increase to above 6 percent next year.

The growth also highlights Uganda’s pro-business policies that allow foreigners to own property, establish businesses, make investments, and establish greenfield investments, among others.

Yesterday, Mr Ramathan Ggoobi, the Ministry of Finance permanent secretary, said Uganda has been deliberate on investment promotion with attractive incentives, adding that the country also enjoys market proximity to DR Congo, South Sudan, and Kenya.

“We have comparatively cheaper [and trainable] labour. We also have the least foreign exchange risk. In the past five years, the shilling has depreciated by only 0.33 percent, the lowest in the region. Investors want consistency and predictability,” he said, noting that the country also enjoys an abundant supply of low-cost raw materials.

South Sudan follows Uganda as the second largest destination of intra-EAC investments with the country, which has been engulfed by various episodes of civil strife, attracting 41 projects worth $552.4m. 

However, all the projects were achieved between 2019 and 2020 and no project was registered in the three years to December 2023. 

Tanzania attracted 109 projects worth $507.72m, while Burundi and Rwanda attracted projects worth $237.08m and $159.14m, respectively.

Kenya attracted the least value of investments from within East Africa, achieving $112.72m worth of investments from 47 projects. No data was provided for DR Congo. 

The report indicates that the highest number of projects were in wholesale, retail, tourism, manufacturing, finance, insurance, real estate, and business services. Mining and quarrying also remain key investment areas within the region.

Mr Morrison Rwakakamba, the Agency for Transformation chief executive officer and former Uganda Investment Authority chairman, said Uganda continues to invest in core enablers for investment, ranging from security, infrastructure, and monetizing the economy, which positions the country as a key investment destination. 

Size of capital investment between 2019 and 2023  

Share of foreign direct investment 

The report further indicates that Uganda, in the five years to December 2023, attracted the largest share of foreign direct investment of $8.95b due to an increase in oil-related investments. 

South Sudan followed with $6.99b, followed by DR Congo ($6.37b) and Tanzania with $5.91b, respectively. 

Burundi and Rwanda attracted foreign direct investments worth $4.96b and $4.68b,  respectively while Kenya attracted the least amount of $3.17b in the five years. 

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