Kenya GDP Expanding by 6 Percent, Says UK Accounting Body
Kenya’s economy is expected to grow by 6 percent between 2017 and 2020, according to a leading UK accounting body.
The Institute of Chartered Accountants in England and Wales (ICAEW) pinpoints Kenya’s “diversified economy” as a driving force for economic development in its report, Economic Insight: Africa Q1 2016.
African economies on the up
The report says African economies will expand by an average of 4 percent over the next five years, but warns that manufacturing and dependence on commodity exports remain as genuine barriers to development in African nations.
However, the same report claims a lack of such commodity dependence in Kenya will be a key advantage for the country.
“In the East Africa region Kenya’s economy should be able to expand by around 6 per cent during the 2017 to 2020 period. Thanks to its relatively diversified economy and comparatively low commodity dependence bonding well with the country’s economic growth outlook,” the report says.
A shift towards manufacturing
ICAEW Middle East, Africa and South Asia Regional Director Michael Armstrong reinforces the need for African nations to improve their manufacturing sectors. He says countries across the continent need to develop “a hospitable environment for companies in the manufacturing and services sectors to drive growth, as the old models of growth driven by exports of raw materials are out-dated.”
Overreliance on the fragile exports – most recently oil – not only hinder development within countries, but also increase uncertainty in the minds of investors. Fundamental to growth across the continent will be African nations proving they can create more diverse and reliable economies, the report says.