WATCH: German companies losing confidence in East Africa
JOHANNESBURG – A survey by the delegation of German industry and commerce for East Africa shows the business expectations of German companies over the next 12 months has declined, with Tanzania having the lowest score of 25 percent, driven by risks including trade barriers, preference for local companies, legal uncertainties, skills shortage and low demand, the Daily Monitor reported.
This could have a significant effect on foreign direct investments, with risk-adverse German companies shying away from the region.
Rwanda stands out in the autumn 2019 World Business Outlook survey with a score of 69 percent although skills shortages and low demand for goods is negatively impacting foreign companies there.
Kenya scores 62 percent, with Germany companies however concerned over the country’s economic framework conditions and low demand, while Uganda has a score of 43 per cent with financing being the major risk.
Ethiopia was given a 75 percent score despite risks like economic framework conditions, financing, trade barriers and preference for local companies.
- African News Agency (ANA)