Kenya will remain a regional economic powerhouse with a gross
domestic product growth close to 6.5 per cent in the next three years, a
new report now projects.
Titled Economic Insight: Africa Q3 2015
the report released Wednesday by the Institute of Chartered Accountants
in England and Wales (Icaew) says the growth will be helped by domestic
demand and the emergence of a middle class in Kenya.
It
adds, that closer regional integration in the East African Community
(EAC), is expected to help drive economic expansion within member states
with Kenya being the biggest beneficiary.
MOBILE PAYMENT LEADER
It
also says that beyond the entertainment and media industries, Nairobi —
and Kenya in general — is emerging as a global leader in the financial
services sector especially in mobile payments.
“Mobile
payments are now easier to make and more commonly used in Nairobi than
in advanced cities like London or New York,” it says.
It
notes that the mobile money transfer system is now being adopted in
other countries, such as Tanzania, Afghanistan and India, becoming “one
of the first examples of Africa’s global connections beginning to run
the other way, in contrast to what has traditionally been the case.”
KENYA RISING
The
report also shows that Africa is turning from being just a recipient of
development assistance into providing business opportunities for
foreign direct investment (FDI).
In
Kenya, inward FDI from China has been a big part of this trend, with
investment going mainly into primary resource sectors and
infrastructure, the report notes.
“Nairobi
tops the list as Africa’s most attractive destination for FDI. This is
in big part motivated by the fast-growing middle class that is setting
the stage for a booming consumer market,” report adds.
The report was produced by the Centre for Economics and Business Research
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