Kenya Beats India, China as Major Investor in East Africa

{{It has emerged that Kenya has toppled the Asian powerhouses India and China in terms of investment in the region.}}

According to TradeMark East Africa, the publishers — in collaboration with the World Bank — of the Doing Business Report, Kenya dominates in financial, retail and agro-processing sectors.

“Investments from China and India are picking up quite significantly, but the bulk of the investment in East Africa is still from the United States and Europe,” TradeMark Chief Executive Frank Matsaert noted.

The integration of East African countries saw the launch of a common market in July 2010, opening up trade between the five member states.

Kenya Commercial Bank (KCB), Equity Bank and Cooperative Banks have expanded operations across the region, while retail chains Nakumatt and Uchumi are scouting for more opportunities.

Uchumi has a presence in Uganda and Tanzania, while Nakumatt has stores in Uganda, Tanzania and Rwanda.

Matsaert also underscored the huge investment potential in the innovation and services industry within the East African Community.

The region is a top destination for dealmakers who are being drawn in by the improved business environment and discovery of commercially viable oil and gas deposits in Uganda, Kenya and Tanzania.

Further, business confidence and consumer demand saw inflows from private equity (PE) funds into the region double from 2011 to hit US$475 million.

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