S. African bank ranks Tanzania among 10 dynamic FDI performers in Africa

 

President Jakaya Kikwete receives a special award from Chief Justice, Mohamed Chande Othman during a fare well ceremony which organised by Tanzania Courts and lawyers to the president. PHOTO | STATE HOUSE

By The guardian reporter

A report released on Monday by a South African-based investment bank has named Tanzania as one of the top 10 African countries with "dynamic" performance in attracting foreign direct investment.

 

South Africa tops the list followed by Nigeria, Ghana, Morocco, Tunisia, Egypt, Ethiopia, Algeria, Rwanda and Tanzania comes eighth, according to the report by Rand Merchant Bank.

 

The survey was conducted based on factors for most business investment decisions -- market size or Gross Domestic Product (GDP), economic growth (GDP growth forecasts over the next five years), and an operating environment index.

 

Of the top 10 countries in Africa, four are in North Africa, two in West Africa, three in East Africa and one in Southern Africa.

 

"Rwanda and Ethiopia are the most unexpected countries in the top 10, but both deserve their elevated status. Rwanda's rating reflects the excellent reforms of the past decade and Ethiopia's reflects its sheer size and phenomenal growth rates," the report said.

 

Rwanda has demonstrated consistent strong performance in the World Bank Doing Business Rankings in recent years with progress said to have been made across all the key indicators.

 

The 2015 World Bank Doing Business Report ranked Rwanda 46th out of 189 countries globally that were promoting conducive environment for business.

 

The country which aims to become a middle income nation by 2020, has established joint business ties with countries like Kenya, Uganda, Turkey and India with investment seen into various sectors like manufacturing, tourism, telecommunication, energy, education and agriculture.

 

As for Tanzania, she aims to become a middle income economy by 2025 and has also devised strategies like Mkukuta and Mkurabita to see that it attains the target.

 

The country has boosted investment opportunities by introducing a new investment law.

 

The new investment law, launched in Kigali last month, replaced one enacted in 2005, seeks to bring USD1.12bn foreign direct investments (FDI) by the end of the year.

 

Figures from Rwanda Development Board (RDB) put the country's actual FDI at USD257m in 2013 and USD521m in 2014.