Govt for improved global environmental policy

The Minister of State for Investment and Empowerment, Prime Minister�s Office, Eng Christopher Chiza

 The government has said that strengthening the global policy on environment, including both the International Investment Agreements (IIA) and the international tax regimes must be a priority for the growth and expansion of investment to Tanzania and Africa at large.

 

In his remarks at the launch of the World Investment Report 2015 in Dar es Salaam recently, the Minister of State for Investment and Empowerment, Prime Minister’s Office, Eng Christopher Chiza said the international and development community should, and can, eventually build a common framework for global investment cooperation for the benefit of all.

 

“I commend this report to all those interested in steering private investment towards a more sustainable future,” he said in a speech read on his behalf by the Permanent Secretary, Prime Minister’s Office, Dr Florens Turuka.

 

The report shows that global FDI inflows declined in 2014 by 16 per cent to about USD 1.2 trillion largely because of the fragility of the global economy, policy uncertainty for investors and elevated geopolitical risks.

 

The report also shows that inward FDI flows to developing economies reached the  highest level at USD 681 billion with a 2 per cent rise.

 

Developing economies now account for 55 per cent of global FDI inflows. Among the top 10 FDI recipients in the world, 5 countries belong to developing economies group.

 

According to the report, FDI inflows to Africa remained flat at USD 54 billion while an interesting development was taking place at the sectoral level.

 

Although, the services share in Africa FDI was still lower than the developing country average, services now account for about half of the total FDI stock in the region, which was more than twice the share of manufacturing FDI.

 

According to the report, the growth of 0.5 per cent in inflows helped Tanzania maintain its position as the leading destination for FDI in East Africa last year.

 

 Natural gas discoveries account for the largest chunk of the FDI, according to the 2015 World Investment Report.

 

The country was attracting massive investment in form of natural gas exploration, with latest data indicating that at least 55 trillion cubic feet have been found by various multi-nationals.

 

Tanzania out-performed its regional peers to attract FDI totaling USD 2.142 billion in 2014, up from USD 2.131 billion in 2013.

 

Uganda, which has economically viable oil reserves, registered USD 1.147 billion in FDI last year while Kenya, which was the largest economy in East Africa, received USD 989 million in FDI.