Kenya’s Growth Markets: The Ins and Outs

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Kenya’s economy continues to flourish, in light of recent credible economic forecasts from reputable international organisations, such as the IMF and the World Bank. Furthermore, this favourable economic outlook is additionally buttressed by an array of noteworthy investment projects on the ground.

Amongst these notable investments, pertinence is being given to hefty infrastructural projects, a key macroeconomic strategy that is being touted as supporting the country’s continued robust economic growth.

Accordingly, the latest projections (Q2, 2019), indicate that growth is projected to reach 97 billion USD, which represents a 5.8% GDP growth figure for 2019.

Growth Markets

These varied auspicious economic developments present a slew of lucrative FDI business opportunities for a number of private-sector stakeholders. Of essence, companies that operate within the following industries are particularly at an advantageous position, herein: Renewable Energy, Agribusiness, Health Care, FinTech, Information & Communications Technology (ICT), Manufacturing, Infrastructure and Building & Construction.

In the following, more elaborate depictions of the various lucrative business opportunities within each industry are illuminated.

Renewable Energy

Kenya’s Energy sector is amongst the most vibrant in Africa and thus, energy demand, and in particular renewable energy – presents opportunities for varied lucrative business opportunities, therein.

Such progressive opportunities include earmarked commercial production of an assortment of biomass and biogas products and expertise that comprise:

  • Biomass – Co-generation using sugarcane bagasse and other agricultural residues.
  • Biogas – Potential to produce over 130 MW of power, availability of municipal coffee and sisal waste, and potential to generate slaughter wastes.

Agribusiness

Agricultural productivity levels are considered to account for one of the highest – within the EAC (East African Community) region. In terms of exports, the sector accounts for 70% of output, therein.

As per employment levels, the sector employs an estimated 85% of the rural workforce. Currently, the sector attracts approximately 20% of FDI within the region – a development that further enhances its commercial attractiveness.

Lucrative business opportunities in this sector, within the Kenyan market, include:

  • Agro-processing – commercial irrigation, grains milling and marketing (maize and wheat), sugar, dairy, fruits (mangoes, pineapples and oranges), poultry, pigs and oil crops (sunflower, sesame, canola and groundnuts).
  • Light manufacturing – construction materials, agricultural machinery and equipment, plastic and packaging industry, leather industry, pharmaceuticals and animal feeds.

Health Care

A number of favourable reforms in the health care sector are on course. In this regard, the sector is poised to experience substantial growth. For instance, its currently valued at $ 2.2 billion and its contribution to the country’s GDP is pegged at – 3%.

Lucrative business opportunities in this sector include:

  • Health Equipment – manufacturing of medical devices.
  • Health Products – provision of expertise in the life sciences and pharmaceuticals.
  • Health Technologies – provision of expertise in ICT solutions.
  • Health Care Financing – provision of an array of investment funds.

FinTech

The financial sector is becoming increasingly sophisticated and diversified, whereby it represents the third largest within the Sub-Saharan African (SSA) region.

Lucrative business opportunities in this sector include:

  • ICT Enabled Financial Services – service providers with the expertise of developing compatible ICT enabled services.
  • Risk Management – provision of expertise in cybersecurity.

Information & Communications Technology (ICT)

The country’s Information & Communications Technology (ICT) sector is considered to be the most advanced in East & Central Africa. Moreover, Kenya is recognised as one of the most vibrant innovation hubs in Sub-Saharan Africa (SSA).

Lucrative business opportunities in this sector include:

  • Capacity Building and Development – service providers with the expertise in upgrading ICT networks, increasing Internet affordability, the improvement of infrastructure within institutions of learning and to train qualified ICT professionals.
  • Retail – provision of e-commerce technologies.
  • Education – provision of varied digital tools and solutions.
  • Agriculture – provision of varied agri-tech digital tools and solutions.

Manufacturing

The manufacturing sector plays a key role in economic development through its overall significant contribution to the country’s GDP, exports and job creation.

Lucrative business opportunities in this sector include:

  • Direct and joint venture investments in the iron and steel industries.
  • Manufacture of fertiliser and agro-processing.
  • Manufacture of garments.
  • Manufacture of plastics, paper, chemicals and pharmaceuticals.
  • Manufacture of machinery and machine tools.
  • Assembly of automotive components and electronics.
  • Manufacture of metal and engineering products.

Infrastructure

The infrastructure sector is continuing with its vibrant developments, coupled with supportive macroeconomic policies.

  • Lucrative business opportunities in this sector include:
  • Construction material and equipment – provision of high-quality equipment and materials.

Building & Construction

The building & construction sector is well developed and possesses an array of quality engineering and architectural design services.

Lucrative business opportunities in this sector include:

  • Low-cost Housing – provision of varied expertise in the building of durable low-cost housing estates.
  • Commercial Property Development – provision of varied expertise in the development of commercial properties.

Bringing it all together

As hitherto conveyed, Kenya’s continued robust economic growth presents a slew of lucrative FDI business opportunities for a number of private-sector stakeholders. These progressive developments are both backed by credible data from reputable international organisations, such as the IMF and the World Bank, in conjunction with an array of concrete and noteworthy investment projects on the ground.

Of essence, companies that operate within the following industries are particularly at an advantageous position, herein: Renewable Energy, Agribusiness, Health Care, FinTech, Information & Communications Technology (ICT), Manufacturing, Infrastructure and Building & Construction.

Suffice to say, with a projected 5.8% GDP growth figure for 2019, which is simultaneously supported by increasingly favourable macroeconomic policies, Kenya presents a destination of choice for high-growth FDI investing.

Source: ASV.

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