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Ethiopia becomes East Africa’s largest FDI recipient

The EY Attractiveness Survey 2019 released this week, shows Ethiopia attracted foreign investment worth Shs26.8 trillion last year

Published

4 weeks ago

September 19, 2019

Nasir Agbalaya

Ethiopia becomes East Africa's largest FDI recipient

Ethiopia beat all other eastern African countries last year as the largest recipient of Foreign Direct Investment (FDI), according to a new report authored by financial consulting firm, Ernst & Young.

The EY Attractiveness Survey 2019 released this week, shows Ethiopia attracted foreign investment worth Shs26.8 trillion last year.

Kenya closely followed Shs7.68 trillion while Tanzania attracted foreign investments of Shs3.8 trillion in the same period.

The report did not document foreign direct investment figures for Rwanda and Uganda.

However, data from Bank of Uganda indicates that Uganda, in 2018, received about Shs2.9 trillion in foreign direct investment.

In Ethiopia, according to the EY report the Shs26.8 trillion foreign direct investment resulted in creations of 16,000 jobs from 29 projects while about 6,000 jobs were created in Kenya from 64 unnamed projects.

In Tanzania, 3,000 jobs were created from 19 projects.

Ethiopia is attracting higher foreign inflows compared to its regional peers thanks to an “efficient” business environment and the lure of a huge untapped domestic market.

“Ethiopia has affordable electricity supply and is served by an efficient airline,” says Francis Kamau, a tax partner at audit and consultancy EY East Africa.

“It also has a huge domestic market with guaranteed access to external markets through its well served Special Economic Zones.”

Kenya’s FDI attraction is helped by its status as the region’s financial centre, and a hub for many multinationals doing business in the region.

Two of Kenya’s largest blue-chip companies, KCB Group and Safaricom, have continued to eye establishment of operations in neighbouring Ethiopia where reformist Prime Minister Abiy Ahmed is opening up the economy, creating opportunity for foreign investors.

Related Topics:Economy Ethiopia Kenya Rwanda Tanzania Uganda

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Airport authorities seize 342 kilos of lion bones in Johannesburg

The contents of the crates, destined for Malaysia, were misdeclared

Published

2 weeks ago

October 4, 2019

Onis Egwu

SA Airport authorities seize 324 kilos lion bones

South African officials have seized 342 kilos of lion bones – prized in Asia for their supposed medicinal values and to make jewellery – at Johannesburg airport and arrested three people, the environment ministry said Thursday.

The contents of the crates, destined for Malaysia, were misdeclared, a statement said. “When the shipment was inspected, 12 boxes of lion bones wrapped in aluminium foil and weighing 342 kg were discovered,” it said.

Ministry spokesman Albi Modise said although the export of bones of lions bred in captivity was legal, a special permit was required to send them out.

He said all those arrested were foreigners – including two Zimbabweans. One suspect remains in custody. South Africa is home to more than 11,000 lions, of which 3,000 live in national parks where hunting is forbidden.

In September last year, Singapore Airlines – the only carrier transporting lion bones from South Africa to Asia – said it was ending the practice.

Business

Uganda has decided to print its currency at home

Published

1 year ago

October 2, 2018

News Central

Uganda recently signed a deal with a German firm to start printing its own security documents like bank notes, passports and cheques locally.

The signing of the deal between government and Veridos Identity Solutions Group was witnessed by President Museveni at State House Entebbe.

“Veridos Identity Solutions Group that was created with the aim of creating secure and pioneering identification and identity solutions, entered into a joint venture with the Uganda Printing and Publication Corporation (UPPC) on June 11, 2016 after winning the bid,” a statement read.

During the meeting, Mr Museveni noted that the new venture would save Uganda a lot of money that it has been spending on printing documents from abroad.

“There was hemorrhage of resources that was unjustified. Money was going out to print currency notes for a long time. About US$25 million was spent each year to create Ugandan currency,” he said.

Mr. Museveni, thanked the German company for its joint cooperation, and criticized government officials for taking too long to act on such crucial matters that affect the country adding that licensing bodies must not over price working licenses for investors because it cripples investment and discourages potential investors.

“These things of taking two years to deliberate on such matters must stop. Why did you spend two years discussing something that was so obvious?” he asked.