Kenya among top investment hubs in Africa
Ernst and Young (EY) Global chairman and CEO Mark Weinberger (right) and the East Africa CEO Gitahi Gachahi during a past media briefing. Business fraud and bribery in Kenya’s private sector has been on the rise in the last two years, a survey by audit firm Ernst and Young shows. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- The EY survey states that projects attracting foreign direct investments (FDI) in Kenya are: Sh2 trillion Lamu Port South Sudan Ethiopia Transport Corridor (LAPSSET) and East Africa Community (EAC) integration that offers investors the second largest single market in Africa
- Further, Kenya is among countries that has benefitted from investments made by 14 companies considered the continent’s growth leaders over the past seven years
Kenya is among the most attractive investment destinations in Sub Saharan Africa.
According to Ernst and Young 2014 Africa attractiveness survey, Kenya ranks third after Nigeria and South Africa as the most attractive in the region.
The three are said to attract 40 per cent of the total foreign direct investments in the region.
“EAC regional integration, latest infrastructural developments and oil discoveries in Kenya are the key attractive points,” said Ernst and Young global chairman Mark Weinberger during a press briefing at Serena Hotel on Friday, while unveiling the survey.
He noted that despite Kenya’s rank, investors not yet established in the country are less aware of opportunities available, other than those in South Africa.
The EY survey states that projects attracting foreign direct investments (FDI) in Kenya are: Sh2 trillion Lamu Port South Sudan Ethiopia Transport Corridor (LAPSSET) and East Africa Community (EAC) integration that offers investors the second largest single market in Africa.
The market has over 100 million consumers.
KENYA'S ATTRACTIVENESS
Further, Kenya is among countries that has benefitted from investments made by 14 companies considered the continent’s growth leaders over the past seven years.
“The firms have invested over 200 FDI projects in seven years, creating 33,000 jobs with a combined value of Sh1.8 trillion.”
Coca-Cola, DHL Express, BAT, Nestle, IBM and GE are among the companies with their headquarters in Nairobi.
The survey states that Kenya’s attractiveness has grown by about 24 per cent annually since 2007 to date, with Nairobi as the key urban centre improving the figure.
“Nairobi and Lagos are ranked third and fourth most attractive cities, respectively, after Johannesburg,” says the survey.
To attract more investments, Mr Ajen Sita, chief executive officer of EY Africa, said Kenya needs to put more focus on infrastructure, consumer base, local labour cost and productivity and a skilled workforce respectively.
Mr Gitahi Gachahi, chief executive officer EY East Africa, said investment confidence in the region had driven up intra-Africa investment momentum from 8 per cent in 2007 to 23 per cent in 2013.
