It seems that Kenya’s efforts in cross-border investments are paying off if the latest report by the Foreign Direct Investment (FDI’s) annual Standout Watchlist is anything to go by.
The report released in December 2023, showed that Kenya emerged as the third country globally. This effectively indicates that Kenya ranks 3rd globally. It is expected to carry the strongest investment momentum into 2024 with an index score of 87.44.
According to the report, Kenya outranked all European nations and was the leading African nation in the ranking, reinforcing how Kenya ranks 3rd globally among these nations. From the ranking, three African nations made it to the top ten list: Kenya (third), Namibia (fifth), and Morocco (eighth).
Further, the list was dominated by Asian countries, with six countries featuring in the top ten list. Cambodia topped the overall list with 96.11. The Philippines followed with 94.43.
The study assessed the foreign direct investment opportunities of the world’s top 50 FDI destinations. It used data from the International Monetary Fund (IMF) and FDI markets, highlighting how Kenya ranks globally.
The report factored in a country’s Gross Domestic Growth (GDP). It also considered the projected inflation rate in 2024. Additionally, growth in FDI projects in the past two years contributed to Kenya’s high ranking.
FDI, in this case, primarily involves direct investments in businesses of a country by foreigners.
According to the report, Kenya’s GDP is expected to grow by 5.3 percent, up from 5 percent in 2023, with inflation relatively high at 6.6 percent in 2024.
The rate dropped from 6.8 percent in November according to Central Bank of Kenya data. This shows a slight improvement in the ease of the high cost of living. Moreover, Kenya ranks 3rd globally in attracting substantial FDI flows.
Kenya was also praised for experiencing historically high direct investment flows since 2021.
One of the biggest FDI wins pinpointed in the report is the agreement between US-based pharmaceutical company Moderna and President William Ruto’s administration. This deal involves the company setting up a Ksh78 billion plant in Kenya. It will be the first of its kind in Africa.
“The country’s energy sector has also attracted very strong FDI interest. Dubai-based AMEA Power announced in September 2023 the intention to produce green hydrogen in Mombasa, with total investment estimated at Ksh359 billion ($2.29bn).” This further cements the fact that Kenya ranks 3rd globally in favorable investment positioning.
Source-https://www.kenyans.co.ke/
