Kenya drops five places in global connectedness ranking

DHL Express sub Saharan Africa MD Charles Brewer and Kenya manager Alan Cassels. PHOTO | FILE 

By DAVID HERBLING

In Summary

• The index is significant as it helps to show the competitiveness of countries in attracting capital investment inflows—given that countries are scored by measuring cross-border flows of trade, capital, information and people.

Kenya has dropped five places in the global ranking of the ease with which it facilitates cross-border transfer of capital, information, trade and people, a new report shows.

The DHL Global Connectedness Index (GCI) 2014 shows that Kenya has slipped to 106 out of 140 states, down from 101 in 2011. Among the region’s ranked nations, Ethiopia was the best in the Eastern Africa region at position 85 despite dropping nine places. Uganda is ranked at position 121, 15 places behind Kenya while Rwanda and Burundi are number 133 at 137 respectively.

The index is significant as it helps to show the competitiveness of countries in attracting capital investment inflows—given that countries are scored by measuring cross-border flows of trade, capital, information and people.

“This reflects the fact that emerging economies typically lag advanced economies in this regard,” reads the 2014 Global Connectedness Index.

It adds: “And that given limited levels of global connectedness, increasing them could be a powerful lever for boosting global growth.”

Kenya’s trade agreements with partners under the Common Market for Eastern and Southern Africa (Comesa) and the East Africa Community (EAC) have also increased the ease of doing business by relaxing barriers and excess taxes.

Sub-Saharan African countries are the least connected due to poor trade ties between themselves, non-tariff barriers and poor infrastructure.

The report lists Kenya’s top export destinations as Uganda, Tanzania, Netherlands, USA, UK, UAE, Pakistan, Egypt, Somalia and DR Congo. Kenya’s ease of doing business was at position 136 out of the 189 economies surveyed globally, according to the latest World Bank’s Doing Business report.

The World Bank index said investors on average wait for 158 days to get electricity connection and queue for 202 hours yearly at the Kenya Revenue Authority (KRA) to file taxes.

The Doing Business 2015 shows businesses spend an average of 125 days to secure a construction permit and 72 days to get property registered.