Value of Investment in Africa Surges – Report

Bad blood is growing in the opposition Forum for Democratic Change [FDC] in Kabale district, buy medicine between the party Secretary General Sentaro Byamugisha and the vice chairperson Dr Pius Ruhemurana over the Kabale mayoral seat.

The misunderstanding between the two at the close of last week culminated in the closure of the party offices in Kabale town, salve paralyzing all activities there.

The closed offices are located at Humura House, dosage 1st floor along the Kabale – Katuna road.

Late last week, a group of party leaders who support Dr. Ruhemurana held a meeting and asked SG Byamugisha to step aside and allow them chose who should handle his responsibilities up to when the elections are over.

The decision was downrightly rejected by Byamugisha and his supporters who argued that the FDC constitution allows the office bearer to choose a person whom is capable of handling party business up when he is back in office.

He noted that the decision to close the office was illegal because he is the custodian of party property.

The confusion he says, erupted after he refused to acknowledge names of some purported party members handed to his office from the municipality by some aspirants. The names he says were coined for purposes creating ghost voters the coming elections.

He also says that he fell out with the current mayor Dr Ruhemurana after declaring intentions to unseat him in the party primaries.

Dr. Pius Ruhemurana the FDC vice chairperson says on the other hand that members unanimously resolved to close the office after Byamugisha failed to handover office, having declared himself an aspirant for mayor as required by the law.

He says that the resolution was reached during a meeting attended by District party chairperson Lydia Turyahumura, himself, the District and Municipal executives.

Lydia Turyahumura the Kabale district FDC chairperson says that the office is not closed. She however acknowledges the fact that different padlocks are at the office saying that the decision is to ensure that the management of the office is improved.

Some party members in the district have blamed the party chairperson for failing to settle the differences and leaning to the side of Dr Ruhemurana.

Dr. Ruhemurana has been the mayor for Kabale for the last 20 years, having occupied the seat since 1997.

Africa is now positioning itself as a major business opportunity for overseas investors, more about according to the Institute of Chartered Accountants in England and Wales (ICAEW)’s latest Economic Insight report.

Where aid was the traditional source of finance, medical the continent is now seeing a dramatic five fold increase in FDI, with Nairobi topping the list as the most attractive destination.

Launched on Wednesday, the Economic Insight: Africa Q3 2015 report commissioned by ICAEW and produced by the Centre for Economics and Business Research Ltd (Cebr), provides a snapshot of the region’s economic performance focusing specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola.

According to the report, and drawing on estimates prepared by the World Bank, the total level of external financial inflows into Africa has increased from $40.4 bn in 2000 to $192 bn in 2013.

This is largely attributed to the inward FDI from China with investment mainly going into primary resource sectors and infrastructure.

Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia, reveals that China has approached African economies in a very different way to Europe, focusing less on official aid and engaging more aggressively through foreign direct investment and trade.

“This has been a game changer for the development industry, forcing European countries to rethink their strategy of connecting with the continent,” he added.

Thanks to resource wealth, West Africa and Southern Africa are leading the way, attracting the majority of FDI; although East Africa is catching up.

While the latter region currently has the lowest level of African foreign development investment inflows at $6.8bn, its share grew at a rate of 11% between 2013 and 2014.

Despite this low level of investment overall, Nairobi still tops the list as Africa’s most attractive destination for FDI.

This is predominantly motivated by the fast-growing middle class that is setting the stage for a booming consumer market.

According to Danae Kyriakopoulou, ICAEW economic adviser and the report’s author, while economic development naturally varies across the continent, Africa’s regional outlook as a whole remains bright with a number of projects expected to bolster growth.

The report also shows that Kenya remains the star performer in East Africa with GDP growth close to 6.5% in the next three years

It further shows, GDP forecast at 7.2% in Tanzania in 2015, supported by loose fiscal policy in anticipation of the election year.

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