In its 2016 Foreign Direct Investment (FDI) intelligence Report, the Financial Times ranked Kenya as the 4th African country with the highest FDI attracting up to $1 Billion. The same report ranks Kenya second in Africa after South Africa on the number FDI projects. In comparative terms of Capital Investment, Kenya beat the bigger economic powerhouses of Africa like Nigeria, Egypt, Algeria, Morocco & Angola which by far have larger GDPs than Kenya.
Kenya’s performance of the number of projects was extremely outstanding flooring all other African economies except South Africa, a strong indicator of its growing dominance. The number of FDI projects into Africa increased by 6%. Kenya’s increased by 47% almost 8 times above the continents average. Kenya’s stellar performance in the 2016 FDi report is a reaffirmation of the country’s steady economic growth. It’s a vote of confidence among key FDI players worldwide.
Vote of Confidence
As an important vote of confidence in the Kenyan economy, the Overseas Private Investment Corporation (OPIC), the United States government’s development finance institution, has opened its first- East Africa office in Nairobi. This is the third office OPIC has opened in Africa. OPIC has opened two other offices in Africa in Abidjan, Coted’Ivoire and Johanesburg, South Africa.
Kenya’s first vote of confidence came from China-Africa Development Fund (CADF), the largest Chinese fund capital operating on the continent, which opened its offices in Nairobi to cover the entire East African region.Nairobi has received very positive rankings by PwC and Ernst & Young in their reports on the FDI attractiveness in Africa.
Key Sectors: Renewable Energy, Infrastructure and Real Estate
The major sectors benefiting from the FDI in Kenya include renewable energy, infrastructure and real estate. Kenya is currently undertaking very ambitious renewable energy initiatives including wind, solar, and geothermal resources.
Looking up, & ahead- The Forecasts
According to the Trading Economics global macro models, the forecast for Kenya’s FDI performance for 2016-2020 is on an upward scale. It is expected that Kenya will continue its dominance and remain a strong priority FDI destination powerhouse in Africa.Read More
The forum gave interested companies a realistic and practical feel of the listing process. Interested firms had an opportunity to participate in a stage by stage, one on one, structured engagement with CMA, NSE, Nominated Advisors (NOMADS), and Transaction advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers.
The Authority in partnership with industry players held a “Business Incubator and Accelerator on the Listing Experience” in March 2017. This was targeted to present interested companies, with potential to list at the Nairobi Securities Exchange, with an opportunity to participate in a stage by stage, one on one, engagement with relevant intermediaries in the listing process to assist in demystifying the requirements and processes of going public and to allow successful candidates to chart their own listing roadmap.
Interested firms had an opportunity to participate in structured engagements with the CMA, NSE, Nominated advisors (NOMADS), Transaction advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers (one on one to allow for confidential B2B discussions) to discuss their readiness for listing. Areas of engagement on the listing process included: identifying business needs/strategy issues, developing business plans, considerations for the appointment advisors & other agents, mandating negotiation, required documentation, regulatory and other approvals, the process of issue placement and allotment, and fees and timelines. This incubator and accelerator experience is intended to give interested companies as realistic and a practical feel of the listing process as possible.
The Authority also invited a number of business incubators (organizations designed to accelerate the growth and success of entrepreneurial companies, through an array of business support resources and services that could include physical space, capital, coaching, common services, networking opportunities and training) to engage with firms that are not ready to list but have promising prospects that could be nurtured through incubation. This is geared to help develop a pipeline of successful businesses to be listed in the future.Read More