By Leonard Kamugisha Akida,
KAMPALA
A report by Oxford Economics has ranked Uganda as East African Community (EAC’s) most rewarding economy to invest in.
The Africa Risk-Reward Index for 2023, report examines the profits and pitfalls of polarization in each African country, African-led security interventions, and how African countries are financing for the future.
By accessing these three factors, the research can deduce the countries with the highest risk-to-rewards ratio when it comes to conduciveness for establishing foreign businesses.
“The reward scores incorporate medium-term economic growth forecasts, economic size, economic structure, and demographics. The economic growth outlook has the biggest weight in the reward score, as investment opportunities multiply where economic growth is strong,” read a report in parts.
The report further ranked Uganda as the 3rd best rewarding economy to invest in Africa.
Methodology
According to Oxford Economics, the risk scores for each country stem from the Economic and Political Risk Evaluator (EPRE), a joint subscription platform of Control Risks Oxford Economics Africa.
Control Risks and Oxford Economics analysts rate a series of political and economic risk factors on a scale from 1 to 10, with 10 representing the highest level of risk.
List of top 10 most rewarding economy to invest in Africa , according to the Oxford Economics, the Africa Risk-Rewarding Index, 2023.
Each political and economic rating is assigned a default weight based on its significance in the country context and its potential impact on business.
The individual political and economic risk variables are then combined, multiplying the rating by weighting into the overall risk rating of a country.
Uganda’s outstanding performance is accordingly courtesy of Uganda Investment Authority (UIA) and her leadership steered by Executive Director Robert Mukiza and the authority’s board chair Morrison Rwakakamba.
These have been working tremendously well to ensure that Uganda is economically growing and become an attractive investment location.
