Tanzania to lead EAC bloc in job creation - ReportBy FELIX LAZARO in Dar es Salaam | Wednesday, May 9 2012 at 10:55
Tanzania is projected to lead in job creation in the next five years among member states of the East Africa Community, according to the latest report by an international consulting firm, Ernst & Young. The report shows that over the next five years the region will collectively create 56,300 jobs linked to capital inflow by foreign investors.
Of the jobs to be created in the next five years, Tanzania will account for the largest share of 49 per cent, which translates to 28,000 jobs, followed by Kenya, which will create 16,000 vacancies, according to the report.
The report states that increasing foreign direct investment (FDI) in the economic bloc would help reduce the problem of unemployment, as well as spur economic growth and improved livelihoods.
Uganda and Rwanda economies would pave the way for the creation of 11,000 and 1,300 jobs respectively.
The Ernst & Young’s ‘2012 Africa Attractiveness Survey Building Bridges’ shows that mining, oil and gas industries would continue to attract more FDIs and create jobs.
The discoveries of oil deposits in northern Kenya area around Lake Turkana by Tullow, the continuing good environment for doing business in Rwanda, and Uganda’s substantial mineral and oil resources would attract more capital.
The region’s other attractions include low level of bureaucracy, diversified economic services like communications, financial services and political stability in Tanzania.
“Tanzania is forecast to be one of the fastest growing economies in the world, as it has relative political stability,” reads part of the report.
FDI inflows have been climbing whereas between 2003 and 2011, Tanzania attracted $13.2 billion with the bulk going into resources.
“Although FDI flows into Kenya have been relatively low, much of the investment that is made has gone into labour-intensive industries such as the communications sector,” notes the report.
However, Kenya FDI inflows are forecast to average about $1.3billion over the next five years, the figure stands to increase with the discoveries of oil by Tullow Company.
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