{UAH} Kenyans invest $46m in Uganda
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Kenyans invest $46m in Uganda
KAMPALA, Uganda - Actual investments to Uganda during the fourth quarter of 2014 grew by 8% to $46.8 million compared to $43m recorded in the third quarter, the Uganda Investment Authority status of Investment report shows.
"India remained the largest source of FDI projects accounting for 20% of the projects a planned value of investment amounting to $12.5 million in the fourth quarter.
"For the first time in 2013/14, Kenya rebounded emerging as the leading planned FDI source by value registering planned investment value of $46 million," Frank Sebbowa, the Uganda Investment Authority Executive Director said last week.
The status report indicates that an improvement in the finance, insurance, real estate and business services that registered a $17 million injection, the agriculture sector that had a capital investment of $10 million and manufacturing that recorded $9.1m capital led to the growth in investments overshooting the quarter before.
"It should be noted that the fourth quarter experienced an improvement in the investment conversion rate which grew to 15% compared with the 5% realization rate registered in the previous 3rdquarter.
"The positive performance resulted from continued improvement in the macroeconomic environment. It should be noted that there was improvement in actual investment in spite of an 11% decline in the number of licensed projects in the third quarter to 113 projects in the fourth quarter," Sebbowa said.
He said however, planned investment sunk by 69% in the fourth quarter to $310 million from approximately $1billion in the third quarter.
"This can be explained by the value of investments licensed during the period, among other factors," Sebbowa said.
He said less than 10% of the licensed projects had planned capital investment of over $10m.
Sebbowa said Ugandan projects were resilient recording $16.3 million in actual investments and creating 1,013 actual jobs during this quarter.
He said new FDI sources in this quarter included Belgium, Israel, Lebanon, Madagascar, Sri Lanka, Turkey and Thailand.
"On going promotional efforts in Europe specifically Netherlands are expected to spur investment in the next financial year," he said.
Sebbowa said the central region remained the top recipient of actual investments which stood at $28m. The central region also attracted majority jobs which stood at 1,765 in the fourth quarter.
The 4fourth quarter though had a 38% decline in planned jobs to 8,657 jobs from 13,856 jobs in the third quarter.
"In contrast, actual employment grew by 6.5% to 2,263 jobs in the fourth quarter, compared with the 2,124 jobs created in the 3rdquarter. The growth in jobs created was driven by projects in agriculture and manufacturing which jointly accounted for 59% of the jobs created in the 4th quarter," Sebbowa said.
In the first quarter of 2014/15, UIA anticipates to lincense more Ugandan owned projects due to the ongoing UIA promotional efforts in the Eastern region in addition to attracting the diaspora.
More projects licensed in the third and fourth quarters of last financial year 2013/14 are expected to commence operation since several projects were under implementation by end of June 2014 according to UIA.
By Paul Tentena, Sunday, August 17th, 2014
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