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Uganda Ranks Third in Africa for Investment Opportunities

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uganda ranks third in africa for investment opportunities
uganda ranks third in africa for investment opportunities
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Uganda has been recognized as a favorable destination for investment, ranking highest within the East African Community (EAC) and third in the entire African continent, according to the 2023 Africa Risk-Reward Index by Oxford Economics.

This achievement can be attributed to Uganda’s robust economic growth, its youthful and expanding population, and its abundant natural resources, as highlighted in the report. Additionally, Uganda has made significant improvements in its business environment, enhancing its appeal to potential investors.

Among its East African peers, Uganda’s ranking is notable, with Kenya securing the seventh position, Tanzania the eighth, and Rwanda the eleventh.

The top five African nations with the most promising investment potential, as per the index, are Ethiopia, Côte d’Ivoire, Uganda, Nigeria, and Senegal.

The Africa Risk-Reward Index, now in its eighth edition, evaluates 54 African countries, taking into account factors such as economic growth, political stability, infrastructure, and the overall business climate.

Uganda Investment Authority (UIA) head Robert Mukiza emphasized that the country’s commitment to security and its strategic location in the heart of Africa with access to various markets contribute to its attractiveness to investors.

The report also discusses the potential for African countries to leverage their collective position amid global geopolitical shifts. While external actors may have less focus on African security crises, this presents an opportunity for African-led interventions in regional security matters.

Regarding financing, the index suggests that Africa stands to benefit in the long term from geopolitical fragmentation. African financial institutions are stepping up to fill funding gaps and promote financial inclusion. The ongoing implementation of the Africa Continental Free Trade Agreement (AfCFTA) is expected to enhance regional financial connectivity and foster investment opportunities.

However, the report notes that global foreign direct investment to Africa declined in 2022 due to the COVID-19 pandemic and the Russia-Ukraine conflict. African countries are increasingly embracing digital banking, with the fintech sector attracting significant investment.