The State Minister of Finance for Investment and Privatization, Hon. Evelyn Anite is in Jubilation as Uganda after Uganda winning an award for 3rd time as the best investment destination in EAC region.
Minister Aniter expressed her happiness via her official X platform.
What You Need To Know:-
Determining the "best" investment destination in the East African Community (EAC) region depends on various factors such as economic stability, growth potential, infrastructure, market access, and investor-friendly policies. The EAC includes Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, Uganda, and Somalia (a recent addition). Based on available data and trends up to April 10, 2025, here’s an analysis of the top contenders:
Kenya often stands out as a leading investment destination in the EAC. It’s widely recognized as the region’s economic powerhouse, contributing nearly half of the EAC’s GDP. Kenya’s strategic location, with the Port of Mombasa serving as a gateway to East Africa, enhances its appeal. The country boasts a diversified economy with strong sectors like fintech (e.g., mobile payments like M-Pesa), agriculture, and renewable energy, where over 90% of its electricity comes from renewable sources, notably geothermal. Nairobi, its capital, is a major hub for multinational companies and tech startups, supported by a young, educated, English-speaking workforce. Recent reports, such as the 2024 Rand Merchant Bank’s “Where to Invest in Africa,” rank Kenya highly due to its stable economy and growing ICT sector, despite some political stability concerns.
Uganda has also emerged as a strong contender, with recent recognition as a top investment destination in the EAC. Posts on X from April 10, 2025, highlight Uganda being named the "Best Investment Destination in East Africa" for the third consecutive year at the AIM Congress, citing $3.3 billion in foreign direct investment (FDI) and pro-investment policies under President Museveni. Uganda’s strategic location at the heart of the EAC, combined with its access to a market of over 300 million people through the EAC and beyond via COMESA, makes it attractive. Key sectors include agriculture, tourism, and energy, with significant potential in oil and gas as exploration progresses. The government offers incentives like 10-year tax holidays for exporters and zero import duties on machinery, further boosting its appeal.
Rwanda is another notable destination, often praised for its rapid economic growth and business-friendly environment. It’s one of Africa’s fastest-growing economies, with GDP growth projected at 8.0% in 2024 by the African Economic Outlook 2023. Rwanda’s government has invested heavily in improving its business climate, ranking second in Africa for ease of doing business. Its focus on technology, tourism, and infrastructure, along with political stability, draws investors. The free visa policy with Kenya also enhances regional integration and tourism prospects.
Tanzania ranks well regionally too, thanks to government tax breaks, special economic zones, and investments in infrastructure like ports and energy. It offers a large consumer market and natural resources, including recent gas finds, making it appealing for energy and agriculture investments.
While all these countries have unique strengths, Kenya and Uganda currently appear to lead based on economic size, FDI inflows, and regional recognition. Kenya excels with its mature market and infrastructure, while Uganda shines with recent accolades and aggressive investment incentives. Rwanda’s growth trajectory and ease of business make it a close competitor. For a definitive choice, Kenya might edge out slightly due to its established economic dominance and broader sector diversity, but Uganda’s momentum and investor-friendly policies make it a rising star. Investors should weigh their specific goals—whether market size, growth potential, or sector focus—before deciding.
Story By: Hellen Neboshi.
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