EDITORIAL: EAC has potential to attract Direct Foreign Investments

The latest African Investment report published by the Financial Times and published in this newspaper, painted a grim picture of the East African region as far as Foreign Direct Investments (FDIs) are concerned. The report that our region just took a small piece of the investment pie should be put into perspective.First of all, the global economic meltdown hit hard many western countries –the main source of investments and they are still picking the pieces. FDIs have a major function; to strengthen the size of the economy by creating jobs, help bring in export revenues as well as increasing labour skills in some areas. FDIs should not be looked at in the form of short term benefits but what the country stands to benefit in the long run. If the country approaches a bank in China or India to construct a convention centre or a railway line, both countries are actually investing in our infrastructure. Another point that should be considered is that most of the new FDIs on our continent were in energy which this region is seriously looking into. As a regional bloc, the EAC with its population of over 150 million and focused leadership in most of the countries who are putting in place conducive policies for doing business, the potential for FDI’s is immense. The more the integration process takes root, the more attractive the EAC will continue to be.

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EDITORIAL: EAC has potential to attract Direct Foreign Investments