Kenya, Ethiopia could overtake SA, Nigeria, Egypt in attracting FDI

[Nefertiti]

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http://www.newtimes.co.rw/section/read/219969/

Kenya, Ethiopia could overtake Africa's economic heavy weights in attracting investment, report says

By: XINHUA
PUBLISHED: September 15, 2017

A report released by a global risk consultancy, Control Risks, on Thursday shows that Kenya and Ethiopia might soon outshine Africa's economic giants, Nigeria, South Africa and Egypt in the competition for investment.

The report Africa Risk-Reward Index, developed by Control Risks, was released in Johannesburg. The report noted that while Nigeria and South Africa have recovered, there are still some risks.

Ethiopia, which is one of the fastest growing countries in the continent, outperformed all African countries in the survey.

The country attracted 3.2 billion U.S. dollars of foreign direct investment in 2016. Between 2010 and 2015, economic growth averaged 10 percent and was 6.5 percent last year.

"Experienced investors, not only in Africabut around the world, know that risk and reward are close companions," said Paul Gabriel, senior analyst for Africa at Control Risks and lead-author of the report.

"While no serious investor should overlook the economic giants of the continent, real competitive edge can only be achieved when investors manage to stay ahead of the pack in knowing what's next," said Gabriel.

"The Africa Risk-Reward Index helps investors to identify some of the more hidden investment opportunities in times where the heavy-hitters are struggling."

 Kenya had an average economy growth of 6 percent between 2010-2016 and is expected to be at 5.4 percent this year.

The report noted that risks have to balance opportunities. The fiscal concerns and a political system that remains closely tied to ethnic affiliation risks.

"A well-educated workforce and an innovative service sector, the government's continued investments in upgrading critical national infrastructure, and deepening integration with its neighbors through the East African Community (EAC) all allow the country to act as a gateway into the larger East Africa region," said the report.

The reported indicated that Nigeria's energy sector gives the country an appeal. The report however noted some risks of insurgent attacks on Niger Delta and fall in oil prices.

The economic growth fell from 6.3 percent in 2014 to 2.7 percent in 2015. Nigeria had a 1.6 percent economic growth and is expected to be at 1.1 percent this year.

"Whilst South Africa enjoys a deserved reputation as Africa's pre-eminent constitutional democracy, several of its key institutions have gradually weakened over the past decade. Economic prospects are closely linked to the outcomes of the African national Congress (ANC)'s national conference in December.

The forecasted real GDP growth of 0.5 percent for 2017 is below population growth and certainly insufficient to reduce South Africa's staggering 27.7 percent unemployment rate," said the report.

The report said Egypt has stable political position but economic and security challenges remain.

They noted that the government have made progress in addressing fiscal problems. Last year the country's economic growth was 4.3 percent and is expected to grow to 3.8 percent. 

Xinhua

[RV Pundit]

If only we didn't have all drama every elections where losers don't accept they lost

[bryan275]

If only we didn't have all drama every elections where losers don't accept they lost

Accept they lost to electoral thieves?

[RV Pundit]

That remain unproven. Stop shouting here. You can only sway us with facts.

electoral thieves?

[Kichwa]

Why don't we start with the fact that the SCOK has already ruled on this matter and found irregularities and illegalities.

That remain unproven. Stop shouting here. You can only sway us with facts.

electoral thieves?

[RV Pundit]

They also proceeded to say they found third respondent Uhuru not culpable for anything. That mean no rigging. IEBC simply fumbled around.

Why don't we start with the fact that the SCOK has already ruled on this matter and found irregularities and illegalities.

[Nefertiti]

Our democracy is yet to pay off economically. It's is a double-edged sword... because of the disruptive nature of elections - the uncertainty and unstable investment climate with anticipated change of guard. With disparate political ideologies like ours where NASA is seen as socialist - you have to understand the investor jitters. With democracy contend with trade unions and labor unrest. Forget about controlling macroeconomic forces like population growth. If you throw in violent protests you can see the double trouble. Our democratic investment will take a while to pay off.

[Georgesoros]

Our democracy is yet to pay off economically. It's is a double-edged sword... because of the disruptive nature of elections - the uncertainty and unstable investment climate with anticipated change of guard. With disparate political ideologies like ours where NASA is seen as socialist - you have to understand the investor jitters. With democracy contend with trade unions and labor unrest. Forget about controlling macroeconomic forces like population growth. If you throw in violent protests you can see the double trouble. Our democratic investment will take a while to pay off.

Robina, There is no foundation in Kenya. How do you expect an economy to progress when theres no infrastructure - water, roads? you'll find a whole communities built but no water or roads!!!
Businesses need this things before heavy investments. show me one country whole focused on these foundation

[RV Pundit]

Where do you get the money to build infrastructure - all these things must move progressively - yes we have to invest in infrastructure - but the deficit cannot be filled in few years. Hopefully the mega dams that we are building can sort out water. The roads network has really improved - esp the low bitimonious standard roads.

Robina, There is no foundation in Kenya. How do you expect an economy to progress when theres no infrastructure - water, roads? you'll find a whole communities built but no water or roads!!!
Businesses need this things before heavy investments. show me one country whole focused on these foundation

[Georgesoros]

Most cities in Kenya look like this one....

https://www.the-star.co.ke/news/2017/09/15/kabarnet-mired-in-filth-as-hotels-and-lodges-flush-out-raw-sewage-at_c1635852

[Nefertiti]

Most cities in Kenya look like this one....

https://www.the-star.co.ke/news/2017/09/15/kabarnet-mired-in-filth-as-hotels-and-lodges-flush-out-raw-sewage-at_c1635852

Thanks for the Kabarnet link ... puts Pundit in his place 

I agree most towns lack proper water & sanitation. Also housing and transport. Our urban planning is dire. However most cities like Amsterdam were upgraded decades after to include metro and trumps. Yes we can - let's watch Sonko.