This substantial investment not only elevated Uganda’s FDI reception but also contributed to the creation of 6,300 job opportunities in the country. Kenya remains attractive to investors Although Uganda received the highest amount of FDI, Kenya remained the most attractive destination for investors when measured by the quantity of investments. “Kenya is by far the largest destination in the region when measured by number of projects, while Uganda received the most capital via investment from France in the oil and gas sector,” read the report by Ernst & Young (EY). There were 63 projects undertaken in Kenya compared to nine projects in Uganda, which means that the projects in Uganda required massive capital investments. Kenya and Tanzania raked in $2 billion (KSh 313 billion) and $1.3 billion (KSh 203.4 billion), respectively, while Uganda got the largest share with $10.2 billion (KSh 1.5 trillion). Increase in FDI Kenya experienced a staggering 117% year-on-year increase in investment, leading to the creation of 7,819 jobs, predominantly in business services, technology, transportation, and warehousing sectors. Meanwhile, Tanzania’s FDI surged by 133%, reaching pre-COVID-19 levels and generating 4,566 jobs through 21 projects, with notable investments in various sectors, including cement production and renewable energy. Who were the investors? France emerged as a significant investor in Tanzania, particularly in the oil and gas sector, and Kenya stood as among the primary sources of regional investments in Tanzania. “State-owned Kenya Electricity Generating Company (KenGen) is looking at two geothermal drilling projects in Tanzania,” reads the report. According to the report titled Pivot to Growth, the nature of Africa’s FDI has changed over the last 20 years as the extractive industry, which once accounted for over 50% of the investments, is now at less than 10%. This shows that African economies are building resilience by diversifying into sectors that stimulate local production and job creation. Julius Bitok IFC invests in Kenya’s housing programme In other news related to FDIs, the International Finance Corporation (IFC), a member of the World Bank Group, officially sealed an equity investment deal amounting to $20.9 million (about KSh 3.2 billion) with IHS Kenya. The agreement, inked on December 15, 2023, at the IFC/World Bank Headquarters in Upperhill, Nairobi, signifies a strategic partnership between the IFC and IHS Kenya in building affordable housing units. “The IFC investment is an equity co-investment package by IFC of up to €19.3 million (approximately $20.9 million, or KSh 3.2 billion) to invest along with IHS Kenya Green Housing Partnership LLP and IHS Kenya Green Housing SCSp (the Fund) in the development and acquisition of approximately 5,000 newly developed, resource-efficient, green affordable housing properties in Kenya,” said the IFC in a statement.
by Elijah Ntongai