By Joshua Masinde
East African nations have maintained their attractiveness to foreign investments, taking the shine from Africa’s largest economies such as South Africa and Nigeria, which continue to falter economically.
Bolstered by increasing investments in infrastructure such as roads, rail, energy, ports and airports, the East African nations of Kenya, Tanzania, Uganda and Ethiopia have enjoyed growth rates of at least 5 per cent over the past decade. Findings in oil and gas have added an impetus to their growth prospects.
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A recent Working Paper by The Centre for Global Development (CGD), noted that the “general level of prices in Ethiopia is below the level in India and comparable to that of in Bangladesh.” With labour costs rising at a faster pace in countries such as China, large industrial firms are increasingly exploring opportunities for production outside their own territory or even Asia. This has made the East African nations a sweet spot for investment flows.
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