This archive report was first published on 7 July 2020.
Published on July 7, 2020, the World Investment Report 2020 by the United Nations Conference on Trade and Development (Unctad) paints a grim picture of foreign direct investments (FDIs) in East Africa.
FDIs in the region declined by 9% to $7.8 billion in 2019, down from $9 billion in 2018. The report highlights the impact of the Covid-19 pandemic on global economies, which is expected to lead to a sharp decline in FDIs this year.
East Africa's mixed fortunes in 2019 saw Uganda post a 20% increase in inflows to $1.3 billion, driven by the development of oil fields and an international pipeline. In contrast, Kenya's inflows dropped by 18% to $1.3 billion, despite new projects in information technology and healthcare.
Tanzania's inflows remained largely unchanged at $1.1 billion, while Ethiopia, the region's biggest FDI recipient, recorded a decline in 2019 after attracting inflows worth $2.5 billion, down from $3.3 billion in 2018.
Unctad director of investment and enterprise, James Zhan, noted that several services industries, including aviation, hospitality, tourism, and leisure, are hit hard by the pandemic. He warned that this trend is likely to persist for some time in the future.
