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Investors in research prefer Tanzania -UNDP report
2005-09-30 10:41:12
By Ludger Kasumuni
Encouraged by the huge portfolio of foreign direct investments (FDIs) into the country in the past 10 years, transnational corporations are eyeing Tanzania as an ideal destination for investment in research and development.
Speaking during the presentation of the World Investment Report in Dar es Salaam yesterday, acting executive director of Tanzania Investment Centre (TIC), Emmanuel ole Naiko, said Tanzania is rated third behind the US and China as a prime investment destination.
The report, prepared by the United Nations Development Programme (UNDP), says countries that lead in terms of FDI inflows to research and economic development are the United States, followed by Spain.
Ole Naiko, however, said that South Africa and Mauritius were the only other African countries that also attracts huge FDIs in research and economic development realms.
He said that among non-oil producing African countries, Tanzania is among the top three in terms of FDI inflows.
The report also cites other non-oil producing African countries as South Africa, which attracts US$585 million, Ethiopia US$545 million and Tanzania US$470 million per annum.
In terms of the trend, the World Investment Report ranks Tanzania as an economy with one of the highest FDI inflows because between 1995 and 2005 the FDIs had soared 15 times.
The report says that, while in 1995 Tanzania’s economy accounted for only US$30 million, the figures surged to over US$470 million per annum in 2004.
’’The World Investment Report has adjusted the FDI figures inflow into Tanzania, which show that, since 1999 Tanzania has made major improvements that have increased FDIs from US$30 million in 1995 to an average of US$450 million per annum between 2001 and 2004,’’ ole Naiko said.
He said that, since the transnational corporations are eyeing developing countries for investment in research and economic growth, this interest poses major challenges to Tanzania and other poor countries to invest in human-resource development.
’’This implies that countries with highly skilled labour will attract more FDIs in research and development,’’ole Naiko said.
Ole Naiko said that the volume of FDIs to Africa is, in general terms, still very small as it constitutes a total of US$18.1 billion per annum compared with US, which in 2004 alone raked in a whopping US$96 billion.
In terms of ranking, the report lists the other countries surpassed by the US – amounts in brackets – as UK (US$74 billion), China (US$60 billion) and Belgium (US$34 billion).
The others are China (US$34 billion), France (US$24 billion), Spain (US$18 billion) and Brazil (US$ 18 billion).
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