Why Kenya? A Blueprint for Innovative Companies
By Rolex Owino
Kenya presents an array of viable business opportunities for Innovative Companies. The country adopts a market-based economy that represents the largest and most advanced economy in East and Central Africa. This noteworthy development is further highlighted by the country’s GDP standing, which accounts for more than 50% of the regions total. Current estimates project the country’s GDP to increase to 5.6% in 2018 – and 6.2% in 2019, respectively.
Associated benefits for innovative companies that both operate and are considering to establish their business activities, within the Kenyan marketplace include: (1) A variety of tax treaties and investment promotion and protection agreements, (2) Political and macroeconomic stability, (3) Progressive regulatory reforms, (4) Access to a large pool of highly educated and skilled work force, (5) Strategic location to the larger East African Community (EAC) and adjacent regional markets, (6) A highly developed social and physical infrastructure, (7) A fully liberalised economy, (8) Preferential market access to neighbouring and adjacent markets, and (9) A well-established and robust private sector. Correspondingly, the associated challenges for innovative companies that both operate and are considering to establish their business activities, within the Kenyan marketplace include: (1) Occasional mild political instability, and (2) Corruption impediments.
Overall, it is apparent that the associated benefits of doing business in Kenya respectively override the associated challenges, therein. Hence, Kenya’s Business Markets, in spite of their varied challenges – have continuously been touted as representing some of the most promising growth markets in Africa.
The following highly productive industries provide viable business opportunities for Innovative Companies: Agribusiness, Renewable Energy, Health Care, FinTech, Information & Communications Technology (ICT), Education, Manufacturing, Infrastructure and Building & Construction. Correspondingly, the following ideal entry mode strategies will ensure the long-term success of Innovative Companies that both operate and are considering to establish their business activities, within the Kenyan marketplace: (1) Exporting, (2) Joint Venturing, (3) Franchising (4) Mergers & Acquisitions, and (5) Strategic Alliancing.
Author(s) & Contributor(s): ASV, Client Relations
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