NIGERIA
Kenya-UK Trade and Investment Forum has upbeat mood
Officials at a recent forum in London explained how Kenya is one of Africa ' s economic stars, and is attracting investment through its open and stable economy. However, security issues and a creaking infrastructure are still a cause for concern.
While many of Africa’ s key economies face falling growth and economic volatility, east Africa’ s economic heartland and primary investment destination, Kenya, appears to be bucking the trend. The country’ s growth in recent years is reflected by dramatic increases in inbound FDI. According to the World Bank, inward FDI to the country climbed from $ 163m in 2012 to $ 1.5bn in 2015, a 920 % increase despite terrorist attacks carried out by militant group Al Shabaab in that time.
According to greenfield investment monitor fDi Markets, Kenya received its highest inflow of greenfield FDI in 2015, through 96 projects. This was a 55 % increase from 2014, which saw the highest rate of investment since fDi Markets began monitoring investment in 2003. Thus, Kenya contributed to 12 % of Africa’ s inward FDI projects in 2015, making it the second most attractive location for FDI in Africa, second only to long-time powerhouse South Africa.
According to the IMF, Kenya’ s GDP grew by 5.9 % in 2015, which was followed with a further 6 % growth in the first quarter of 2016. A 6.1 % growth is forecast for 2017. The World Bank and the Kenyan central bank are projecting similar figures. Thus, Kenya’ s performance and prospects continue to outpace most African counties – the IMF’ s average GDP growth forecast for sub-Saharan Africa is a lowly 3 %.
ACCORDING TO THE IMF, KENYA’ S GDP GREW BY 5.9 % IN 2015, WHICH WAS FOLLOWED WITH A FURTHER 6 % GROWTH IN THE FIRST QUARTER OF 2016.
Additionally, EY’ s Africa Attractiveness Index named Kenya and east Africa as a foremost growth region within the continent, and ranked it the fourth most attractive country for investment and business in Africa.
Forum enthusiasm
The Kenya-UK Trade and Investment Forum, hosted in London by consultancy Developing Markets Associates in September, was coloured both by understandable optimism and occasional notes of caution from various private sector audience members. Driving the enthusiasm were Kenyan and UK government panellists, who were there to showcase Kenya to British businesses.
As the officials emphasised, Kenya and the UK enjoy a historic, healthy and lucrative relationship, reflected by their balance of trade and
54 Business Times Africa | 2016