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Gold to boost FDIs to Tanzania, survey establishes
By Polycarp Machira
The Citizen Reporter
Dar es Salaam. Tanzania's gold reserves will continue to be a magnet for investors in the medium term, placing the country among those with high prospects for attracting more foreign direct investment (FDIs) over the next five years, a new report reveals.According to Ernst & Young 2011 African Attractiveness Survey released this month, higher FDI prospects for the country emanate from the rising price of gold, which has increased by 75 per cent over the last three years.
Except for Burundi, all members of the East African Community (EAC) are in the survey's list of 17 African economies likely to offer appealing FDI opportunities in the next five years. Apart from Kenya, Uganda and Rwanda, Ernst & Young also earmarks other promising FDI destinations in Africa Zambia, Tunisia, South Africa, Senegal, and Nigeria. The list also includes Mozambique, Morocco, Mauritius, Ghana, Ethiopia, Egypt, DRCongo and Angola.
"Driven by the rising price of gold that has increased 75 per cent over the last three years, Tanzania's gold reserves will continue to attract investor interest over the medium term," the survey notes. It also says that although the risks in investing in Africa may appear high, the risks involved are manageable, and the rewards appealing.
The report notes that Tanzania's relatively well-educated labour force, coupled with political stability and the government's sound macroeconomic management of the economy, will add to the country's attractiveness. However, it cautions that the relatively small domestic market, poor infrastructure network and high levels of bureaucracy are a barrier to further investment in the non-mineral sector of the economy.
Read more »
By Polycarp Machira
The Citizen Reporter
Dar es Salaam. Tanzania's gold reserves will continue to be a magnet for investors in the medium term, placing the country among those with high prospects for attracting more foreign direct investment (FDIs) over the next five years, a new report reveals.According to Ernst & Young 2011 African Attractiveness Survey released this month, higher FDI prospects for the country emanate from the rising price of gold, which has increased by 75 per cent over the last three years.
"Driven by the rising price of gold that has increased 75 per cent over the last three years, Tanzania's gold reserves will continue to attract investor interest over the medium term," the survey notes. It also says that although the risks in investing in Africa may appear high, the risks involved are manageable, and the rewards appealing.
The report notes that Tanzania's relatively well-educated labour force, coupled with political stability and the government's sound macroeconomic management of the economy, will add to the country's attractiveness. However, it cautions that the relatively small domestic market, poor infrastructure network and high levels of bureaucracy are a barrier to further investment in the non-mineral sector of the economy.
Read more »
