Kenyans in a retail store. Kenya has been ranked below the top ten
investment destinations for retail investors in Africa due to low
longterm opportunity, low GDP growth and low sales per capita.
Photo/FILE
NATION MEDIA GROUP
Kenya has been ranked below the top ten
investment destinations for retail investors in Africa due to low
longterm opportunity, low GDP growth and low sales per capita.
The
country is ranked 20 out of 48 by the A.T. Kearney's First African
Retail Development Index for Market Opportunity. A.T Kearney is a global
consultancy firm.
“The country’s ranking is hampered
by low scores in market size, and time pressure which measures how much
of a longterm opportunity a market represents and low growth rates for
both GDP and sales per capita,” the report notes.
Key
brands Nakumatt and Uchumi together with Tuskys, and Naivas also present
stiff competition to foreign investors some of which have had to close
shop.
Rwanda led the rest of the continent with the
highest longterm opportunity, limited market saturation, low country
risk but had the smallest market size.
Second is
Nigeria with a huge market, good long term opportunity and low market
saturation. Tanzania comes fourth after Namibia.
However
the top ranking destinations like and Tanzania suffer much lower
consumer spending than the more mature markets such as South Africa and
Kenya.
“While these markets are promising because of
favourable demographics and recent growth trends the opportunities
available have upto now been limited primarily to basic consumer
packaged goods at low prices,” the report notes
.
.
Kenya
is currently experiencing a shopping mall boom with malls coming up in
many parts of the country to benefit from the country’s rising middle
class.
The rankings are based on 2012 data.
The rankings are based on 2012 data.
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