Kenya drops to 11th place among 31 top African investment destinations
![Kenya drops to 11th place among 31 top African investment destinations Kenya drops to 11th place among 31 top African investment destinations](https://citizentv.obs.af-south-1.myhuaweicloud.com/128488/conversions/Kenya-og_image.webp)
A general view shows the central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya/File Photo
Kenya has been ranked 11th out
of 31 top African investment destinations in a new index by the Rand Merchant
Bank (RMB).
RMB is among the continent’s top corporate
and investment lenders and is part of FirstRand Limited, one of Africa's largest financial institutions by market cap.
The 2024 Where to Invest in Africa report ranks
the 31 economies based on 20 metrics across four main pillars; economic
performance and potential; market accessibility and innovation; economic
stability and investment climate; as well as social and human development.
Kenya ranks behind Seychelles Mauritius,
Egypt, South Africa, Morocco, Ghana, Tunisia, Senegal, Nigeria and Algeria, in
that order.
This is a drop from the 10th position in
last year’s index.
It is followed closely by Tanzania, Ethiopia,
Botswana and Rwanda in the 12th to 15th positions
respectively.
With a 0.14 overall score, East Africa’s
economic powerhouse ranks eighth in the market accessibility and innovation
pillar, while for social and human development it is at position 10, economic
performance and potential 13. For economic stability and investment
climate, it is ranked 17th.
In the specific metrics, Kenya ranks well
in economic freedom, economic complexity, population size and GDP.
At the same time, it performs poorly in
urbanisation, political stability, forex stability and liquidity, corruption and
population growth.
Kenya is one of Africa’s most vibrant technology
and innovation hubs but has in recent months experienced deadly demonstrations against
the government’s tax hike proposals and concerns of corruption and mismanagement
of public resources.
“Investors will be watching Kenya’s
approach to its lowest metric score: political stability. Kenya’s ranking of 25
out of 31 countries reflects political and social tensions that flow from
inequality and corruption, as well as the security risks that come with ongoing
conflict in the region - including the country’s neighbours Sudan, Ethiopia and
Somalia,” the report says.
“Signs of improvement in political risk
will make the highly diversified economy with growing ICT and finance sectors
more attractive to investors.”
Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke
Comments
No comments yet.
Leave a Comment