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- Jul 19, 2013
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Kenya overtakes
SA as biggest
investor in
African
countries
KCB banking hall in Rwanda. Kenyan banks and
retail businesses have in the past decade
ventured into the rest of Africa, including in
volatile South Sudan. PHOTO | FILE
By BRIAN NGUGI, bnjoroge@ke.nationmedia.com
Posted Thursday, July 28 2016 at 18:57
IN SUMMARY
Kenya invested in 36 projects last year in other
parts of the continent against South Africa’s 33.
Kenya’s global ranking as a source of foreign
direct investment (FDI) to the African continent
also improved strongly to the seventh position in
2015 from 13th in 2014.
South Africa however beat Kenya in terms of the
worth of the projects as it had Sh200 billion
compared to Kenya’s Sh100 billion.
Kenya overtook South Africa to become the
biggest investor in other African countries in
terms of the number of projects in 2015.
Kenya invested in 36 projects last year in other
parts of the continent against South Africa’s 33, a
new study by financial consulting firm Ernst &
Young shows.
It noted that most of Kenya’s intra-Africa
investments went into countries within the East
African Community (EAC).
The study said Kenya’s global ranking as a
source of foreign direct investment (FDI) to the
African continent also improved strongly to the
seventh position in 2015 from 13th in 2014.
“Activity was largely concentrated in services,
with financial and business services together
accounting for nearly 78 per cent of FDI projects
originating from Kenya,” said the report released
Monday.
“Many Kenyan companies are playing the role
initially adopted by South Africa’s corporate
sector, who were the first to venture outside their
home markets,” it adds.
South Africa however beat Kenya in terms of the
worth of the projects as it had Sh200 billion
compared to Kenya’s Sh100 billion.
In the past decade, Kenyan banks and retail
businesses, for example, have ventured into the
region including in the volatile South Sudan and
Somalia.
“East Africa is the primary destination for Kenyan
investors, in line with overall sub-regional
integration plans,” said the study.
It further shows that Africa attracted FDI from a
diverse and growing group of investors.
In 2015, the US retained its position as the
largest investor in the continent, despite a four-
per cent fall in FDI projects. Historical investors,
including the UK, France, the UAE and India,
expressed renewed interest in Africa.
Other notable investors in Africa were Italy and
Luxembourg, which became among the largest 15
investors in 2015. Overall, intra-African FDI
projects rose 2.8 per cent in 2015, with capital
investment up 6.2 per cent.
In terms of inward FDI in 2015, the study shows
that Kenya, touted as East Africa’s anchor
economy, posted a resurgence with projects
standing at 95 compared to 62 the previous year,
an increase of 53.2 per cent.
At the same time South Africa had more inward
FDI projects numbering 130 in 2015 compared to
120 projects in 2014 , an 8.3-per cent increase.
“Kenya and East Africa is shining bright and even
brighter in the comparison with its peers. Kenya is
very much the leader in this region and because
of a good component of diversification, is
maintaining a strong rate of GDP expansion,” Rich
Management CEO Aly Khan Satchu said of the
report’s findings.
SA as biggest
investor in
African
countries
KCB banking hall in Rwanda. Kenyan banks and
retail businesses have in the past decade
ventured into the rest of Africa, including in
volatile South Sudan. PHOTO | FILE
By BRIAN NGUGI, bnjoroge@ke.nationmedia.com
Posted Thursday, July 28 2016 at 18:57
IN SUMMARY
Kenya invested in 36 projects last year in other
parts of the continent against South Africa’s 33.
Kenya’s global ranking as a source of foreign
direct investment (FDI) to the African continent
also improved strongly to the seventh position in
2015 from 13th in 2014.
South Africa however beat Kenya in terms of the
worth of the projects as it had Sh200 billion
compared to Kenya’s Sh100 billion.
Kenya overtook South Africa to become the
biggest investor in other African countries in
terms of the number of projects in 2015.
Kenya invested in 36 projects last year in other
parts of the continent against South Africa’s 33, a
new study by financial consulting firm Ernst &
Young shows.
It noted that most of Kenya’s intra-Africa
investments went into countries within the East
African Community (EAC).
The study said Kenya’s global ranking as a
source of foreign direct investment (FDI) to the
African continent also improved strongly to the
seventh position in 2015 from 13th in 2014.
“Activity was largely concentrated in services,
with financial and business services together
accounting for nearly 78 per cent of FDI projects
originating from Kenya,” said the report released
Monday.
“Many Kenyan companies are playing the role
initially adopted by South Africa’s corporate
sector, who were the first to venture outside their
home markets,” it adds.
South Africa however beat Kenya in terms of the
worth of the projects as it had Sh200 billion
compared to Kenya’s Sh100 billion.
In the past decade, Kenyan banks and retail
businesses, for example, have ventured into the
region including in the volatile South Sudan and
Somalia.
“East Africa is the primary destination for Kenyan
investors, in line with overall sub-regional
integration plans,” said the study.
It further shows that Africa attracted FDI from a
diverse and growing group of investors.
In 2015, the US retained its position as the
largest investor in the continent, despite a four-
per cent fall in FDI projects. Historical investors,
including the UK, France, the UAE and India,
expressed renewed interest in Africa.
Other notable investors in Africa were Italy and
Luxembourg, which became among the largest 15
investors in 2015. Overall, intra-African FDI
projects rose 2.8 per cent in 2015, with capital
investment up 6.2 per cent.
In terms of inward FDI in 2015, the study shows
that Kenya, touted as East Africa’s anchor
economy, posted a resurgence with projects
standing at 95 compared to 62 the previous year,
an increase of 53.2 per cent.
At the same time South Africa had more inward
FDI projects numbering 130 in 2015 compared to
120 projects in 2014 , an 8.3-per cent increase.
“Kenya and East Africa is shining bright and even
brighter in the comparison with its peers. Kenya is
very much the leader in this region and because
of a good component of diversification, is
maintaining a strong rate of GDP expansion,” Rich
Management CEO Aly Khan Satchu said of the
report’s findings.
