A report by professional services firm Ernst & Young revealed that Kenya has become one of the top destinations for Foreign Direct Investments (FDIs) in East Africa as a result of its adoption of easier bureaucratic processes as well as business friendly approaches. and is second only to Ethiopia.
According to the report, Kenya attracted Foreign Direct Investments (FDIs) which amounted to $2 billion (207.6 billion Kenyan Shillings) making it the 2nd highest in East Africa.
Tanzania came in 3rd with its Foreign Direct Investments (FDIs) reaching $1 billion (103.8 billion Kenyan Shillings).
Ethiopia came out as the number 1 destination for Foreign Direct Investments (FDIs) with $7 billion (726.6 billion Kenyan Shillings).
The report by Ernst & Young also revealed that 710 projects were started in Africa and created 117,000 jobs while also attracting $75.5 billion (7.8 trillion Kenyan Shillings) in capital.
An estimate of 6000 jobs were created in Kenya from 64 projects, 3000 jobs were created in Tanzania from 19 projects and 16000 jobs were created in Ethiopia from 29 projects.
Kenya appeals to foreign investors because it is East Africa’s regional financial centre, thus making it a hub for many multinationals looking to do business in the region.
The East African nation’s technology and innovation sectors, are further raising its pull for Foreign Direct Investments (FDIs) and leading to strong growth rates which are consistent.
East Africa’s collective economy is worth $265 billion (27.5 trillion Kenyan Shillings), led by Kenya with $88 billion (9.1 trillion Kenyan Shillings), Ethiopia $79 billion (8.2 trillion Kenyan Shillings), Tanzania $58 billion (6 trillion Kenyan Shillings), Uganda $29 billion (3 trillion Kenyan Shillings), and Rwanda $10 billion (1 trillion Kenyan Shillings). Consistent yearly compound growth rates will see the East African region become more economically influential in the next 10 years.
The region grows at a 7% average with most countries growing above 5% per annum with Ethiopia, Rwanda and Uganda ranked among the top 10 fastest growing economies in the world. Rwanda with 8.6% and Ethiopia and Uganda with 7.7% each.
