Uganda, which ranked 115 (from 122 last year) of the 144 economies surveyed globally, was followed by Rwanda, whose economy improved from position 62 last year to 58, while Tanzania moved one position to rank 120 globally.

 

Although Burundi improved to position 136 this year from 139, it still ranked among the bottom five economies in the world.

 

Kenya, which slipped nine places to position 99, was said to have lost due to corruption and the sporadic insecurity that has kept away investors over the past three years.

 

Kampala, meanwhile, benefits from strong demographics as it enjoys a relatively youthful population.

 

The report says East Africa's economic improvement has been driven by an overall better infrastructure, macroeconomic environment, as well as advances in health, primary education, goods market, labour market efficiency and innovation. However, corruption, access to finance and political instability remain the most problematic issues affecting doing business in the region.

 

 

 

The report defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. A more competitive economy is one that is likely to sustain growth.

 

The highlights come at a time when an Institute of Chartered Accountants in England and Wales (ICAEW) report indicates that East Africa's inflows of foreign direct investment increased by 11 per cent in the third quarter of the year.

 

According to the ICAEW report, drawing on estimates prepared by the World Bank, the total level of external financial inflows into Africa increased from $40.4 billion in 2000 to $192 billion in 2013. This is largely attributed to FDI from China, with investment mainly going into primary resource sectors and infrastructure.

 

Kigali, for example, is helped by Rwanda's performance in the "Ease of Doing Business" metric, with the World Bank ranking it as a better place to set up a business than Italy.

 

"For Rwanda, the ranking is a result of extensive efforts by the government to continuously improve the business environment. As we move towards becoming a middle-income country, we will work even harder to develop a more sustainable and competitive economy that will benefit all Rwandans," said Francis Gatare, chief executive of the Rwanda Development Board.

 

Source : allafrica.com