According to a World Bank report, Kenya’s economy grew at a 5.7% annual rate from 2015 to 2019, making it one of the fastest-growing economies in sub-Saharan Africa. While a couple of factors influenced this growth, the most critical has been high investor confidence. In a recent survey by Japan External Trade Organization (JETRO), it was revealed that Kenya is now the most attractive destination for Japanese firms looking to make new investments in Africa, beating the continent’s larger economies like South Africa and Nigeria. Considering the number of Japanese firms currently in Kenya’s automotive, and finance sector, there is a high probability of a stronger Kenya-Japan relationship in the nearest future. Also, Kenya’s position as the economic hub of East Africa, with many emerging start-up companies offering the big potential for collaboration influenced the survey. With the country’s dependence on car imports up to $593 million, the government intends to attract more investment by replacing the market share of used vehicles and used parts with new products manufactured or assembled in Kenya, leaving this space open for more investments in the country.
SOURCE: iAFRICA