Kenya has been ranked as one of the seven top investment destinations to watch in emerging markets by Fortune Magazine, ahead of continental giants Nigeria and South Africa, in what is likely to boost the country’s efforts at wooing foreign direct investments, considered key to accelerating economic growth.
In a report, the magazine also rates the country highest in terms of sound regulatory framework in Sub-Saharan Africa, which has been attracting foreign investors.
“Few countries offer greater promise than Kenya,” the magazine said of the ranking. “Africa’s other large economies, Nigeria and South Africa, face more than their share of political and economic turmoil these days, but Kenya appears headed in the other direction.”
Commenting on the standing, the Cabinet Secretary for Industrialisation and Enterprise Development Adan Mohamed said there is growing confidence by global investors in the country.
“The reducing cost of doing business and stable macro-economic environment continues to make a clear signal that Kenya is ready to do business with the world,” he said, adding that the government has been working on an ambitious programme to address challenges on the ease of doing business, and has set up a delivery team to make the country a world class investment destination.
The programme is spearheaded by the ministry of Industrialisation under the Business Climate Reform Agenda, which seeks to address challenges on the ease of doing business in the country.
The ranking takes note of the Jubilee government’s investment in infrastructure development, the power sector and the improving macro-economic stability, with its dominance in both parliaments cited as one key reason the country is likely to continue on its upward economic trend.
One-stop shop
“The Jubilee government has strengthened the state’s security policies following recent terrorist attacks…and the decision by the International Criminal Court to withdraw charges against President Uhuru Kenyatta brings a new measure of stability,” the report notes.
The news also comes as the country is also setting up a one-stop shop where investors can obtain business permits to prop up Kenya’s position as a favourite regional investment destination.
At the same time, the Magazine has warned investors of a potential economic slowdown in Russia, China, Brazil and South Africa, once considered some of the best investment stops.
The world’s second largest economy, China is said to have grown in 2014 at the slowest pace of 7.4 per cent in nearly a 25 years, while Brazil is on the brink of recession, occasioned by runaway public graft.
The other countries ranked alongside Kenya include India, Malaysia, Indonesia, Mexico, Poland and Colombia.
