Tanzania surpasses Kenya as the region’s top investment destination; Report
Tanzania overtakes Kenya on the best investment destination for investors eyeing the region in the next two years
Tanzania overtakes Kenya on the best investment destination for investors eyeing the region in the next two years.
In a poll of 150 C-suite executives and senior executives in the region, advisory firm KPMG found that 14% of respondents would think about investing in Kenya.
This places Kenya in fourth place among preferred capital destinations, behind South Africa (which received 50% of the votes), Nigeria (30%), and Tanzania (15%).
In the next two years, investors are likely to increase their spending in sub-Saharan Africa, with nations that act as regional investment hubs—such as South Africa, Nigeria, and Kenya—expected to gain the most from this encouraging trend.
According to the survey results, they anticipate that the majority of foreign investment will flow toward the mining, oil and gas, consumer goods, fintech, and industrial sectors.
The respondent group was divided equally between domestic investors (based in SSA) and international investors, comprising a 70 percent to 30 percent mix of strategic and financial investors respectively.
Analysis by KPMG shows that the SSA region reported mergers and acquisitions worth $19.2 billion (Sh2.87 trillion) last year, from a reported 297 deals.
Raila sets condition for signing final bipartisan report
Daring armed gunman ambushes two police officers
Ruto tells off critics over new university funding model
“God has answered my prayers on maize flour prices”; President Ruto
Azimio bipartisan team threaten to frustrate dialogue retreat in Nakuru
Shock as a 60-year-old church leader commits suicide inside school’s toilet
“Just under three-quarters of respondents (74 percent) say they are considering an acquisition or investment in SSA in the next two years, including 71 percent of international buyers who report this. Additionally, 77 percent of all respondents are considering injecting more capital into existing acquisitions, indicating a commitment to expanding their presence in this part of the world,” said KPMG in the survey.
The executives were surveyed based on their experience in deal-making in SSA over the last four years.
The findings have come against the background of capital flight from the region due to high returns on offer in developed markets.
Weakening currencies, including, have also made investors wary of committing capital in the region, due to exchange losses when repatriating dividends.
Shortages of hard currency have also made it more difficult to move returns out of the continent.
The solution, according to KPMG, is for investors to adopt a longer investment horizon when committing to regional acquisitions, with a willingness to reinvest dividends and profits when the cyclical forex shortages strike.
Also read,
BBC reporter resigns over Gaza-Israel conflict amid criticism of Western media
Outrage as mentally ill woman raped, brutally murdered in Kisumu
No El Nino, Kenya MET Department downscales alert to ‘significant’ rains
FOUR arrested while attempting to bomb Israel embassy in Cyprus
Israel, Palestine war to worsen fuel prices in Kenya; DP Gachagua
Varsity student fatally stabbed to death by lover next to police station
Follow us
