Mumbai, November 27, 2017 (GPN) : Export-Import Bank of India (Exim Bank)’s study on “Indian Investments in East Africa: Recent Trends and Prospects” was released at the hands of His Excellency Yoweri Kaguta Museveni, President of the Republic of Uganda, in the presence of (L to R) David Rasquinha, Managing Director, Export-Import Bank of India, Hon. Eng. Muloni, Minister of Energy and Mineral Development, Republic of Uganda, Hon. Matia Kasaija, Minister of Finance and Economic Planning, Republic of Uganda, Rita Teotia, Commerce Secretary, Government of India and Sanjay Kirloskar, Chairman, CII Africa Committee and Chairman & Managing Director, Kirloskar Brothers Ltd. during the CII-EXIM BANK Regional Conclave on India and East Africa, under the theme “Partners in Development”, held at Kampala, Uganda on November 20, 2017.
The East African Region is the fastest growing region within Africa with a growth rate of 5.3 per cent surpassing the average growth rate of Africa (2.2 per cent) in 2016. The East African region has the largest number of Regional Economic Communities (RECs) and inter-governmental regional bodies. The East African Community (EAC), one of the most vibrant RECs in the East Africa Region, comprises Burundi, Kenya, Rwanda, South Sudan, the United Republic of Tanzania and Uganda. This region offers a market access to a population of over 145.5 million and has a combined GDP of US$ 147.5 billion. The EAC partner states qualify for duty-free access to the United States market under the African Growth and Opportunity Act (AGOA) as well as EU’s “Everything But Arms” initiative, under which all products from LDCs except arms and ammunitions have preferential access to the EU market. This Study focuses on the recent trends and prospects for Indian investments in the EAC member countries, given their respective strategic importance.
The EAC region is considered as the fastest reforming region in terms of business regulations. The EAC economies have proved to have resilience towards adverse external conditions due to their non-oil dependence and increasingly diversified economies. According to fDi Markets analysis, within the EAC, Uganda has received the highest Foreign Direct Investment (FDI) during 2007 to 2016 followed by Kenya, Tanzania, Rwanda, South Sudan and Burundi.
Cumulatively, during April 1996 to March 2017, the Indian direct investments in East African Community countries (Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda) in joint ventures (JVs) and wholly owned subsidiaries (WOS), in terms of equity, loan and guarantees issued amounted to US$ 316.6 million, accounting for 0.5 per cent of India’s overseas investments in Africa. During 2016-17, Indian direct investments to these countries stood at US$ 12.9 million. Kenya received highest outward investment in the region accounting for 60.5 per cent of Indian Direct Investment to the region, followed by Uganda (25.6 per cent) and Rwanda (12.4 per cent).
East African Community countries offer wide range of investment opportunities for foreign investors in key sectors. In line with the priority sectors for each of the EAC countries, potential focus sectors which Indian investors may explore for investment would include agriculture and agro-processing, alternative or renewable energy, manufacturing, infrastructure, information and communication technology (ICT), and tourism, among others.