Kenya marks 44% increase in foreign investment
Kenya reported a 44% increase in foreign direct investment (FDI) projects in 2017, according to Consultancy EY.
The EY Attractiveness Program Africa 2018 report shows that Kenya has become the third most attractive African nation for foreign investment, jumping three places above its ranking for last year. South Africa is still the top destination for outside investment and Morocco is the second while Ethiopia saw the most drastic increase to become the fifth most active country in Africa for FDI projects.
Kenya attracting more foreign investment
According to the report, the increase in foreign investment largely revolves around Kenya’s success in establishing itself as a technology hub. Despite instability issues in 2017, surrounding the country’s tentative presidential election – and any dent this caused to investor confidence – the country still marked a significant increase in investment.
Last year’s prolonged election process has been attributed to Kenya’s weak economic growth throughout 2017. The country’s economy grew 4.9 percent compared to 5.9 percent in 2016 – the first time economic growth has dropped below 5 percent since 2012, which was also an election year.
Economic slowdown is becoming a problem for much of East Africa and public debt is steadily increasing. For Kenya and Ethiopia, significant increases in foreign investment come as welcome news as the two countries work to achieve sustainable growth,
Featured image: “Nairobi and Zebras” flickr photo by Rod Waddington https://flickr.com/photos/rod_waddington/32199691775 shared under a Creative Commons (BY-SA) license