Investing in East Africa

East Africa comprises of 5 states namely Uganda,Kenya, Tanzania ,Rwanda and Burundi. There quite various economic indicators that show the region as an investment opportunity .

Why East Africa ?

With a total population of approximately 125 million people of GDP ( PPP )per capita $1200 shows a positive market . The increased trend of the middle class further more ensures an average consumption confidence. The emerging of the East African Economy has greatly brought a solid common market. KPMG www.eastafrica.kpmg.com an international accredited company reports that though Financial crisis has affected global economnies, surprisingly East african nations have mantained reasonable regional economic stability as seen below

( Uganda Kenya and Tanzania average economic indicators )

GDP at Market price $ 61,383 Million

Inflation rate 9.9 %

Budget deficit as % of GDP ( current price ) 8 .0 %

Trade deficit as % of GDP ( current price ) 16.7 %

The Access to the Sovereign Bonds rating by Fitch Rating show Uganda and Kenya on B and B+ respectively which is quite a right economic prosperity path as it shows growth of the financial sector. Uganda registered a GDP growth rate of 7.1 % 2008/9 despite the financial recession.

On the other hand, there are continued improvement in the infrastructures ( roads and health sectors ) , favourable tax rates and rebates which all have a positive investment multiplier effect.

What to invest in ?

With a favorable climate, there is great potentials in the agricultural sectors ( Fishing and fish farming, horticulture, food production , animal husbandry etc ).

The region is endowered with natural mineral resources and antiquities. Kenya and Tanzania have a predominent wild life resource and at the moment Uganda has undeveloped oil to the tune of 2 billion barrels and wells in pipeline.

These all indicate a ground for investment opportunities. ICT is a lucrative investment opportunities in the region, these in general includes mobile and landline communication , radios ,media ( Radio, Tv ) and internet .Film and Music production has a great market not only in the region but also the whole African continent. Ventures in real estate ,Vocational technology ( skills education ) and Medicare production are worth investing in.

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