Wednesday, July 24, 2024
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How CS Prof. Njuguna Ndung’u budget will steady change Kenya to Singapore of Africa

 

Nairobi the capital city of Kenya

Kenya is the continent’s most potential nation in sub-Saharan Africa in terms of prospects. The seventh-largest country on the continent is in a pretty good position as a result of a convergence of political and economic factors.

By 2050, one-fourth of the world’s population is anticipated to reside in Africa, the region with the highest population growth. This indicates that more international firms feel the need to have a physical presence in sub-Saharan Africa.

Due to Hong Kong’s incorporation into communist China and the fact that many of these businesses already see the need for having a foothold in Asia, Singapore has proven to be an appealing option as the region’s centre.

Where in Africa may a similar group of businesses develop? Sadly, several of the most powerful countries in Africa have recently faced serious problems.

Nigeria, the most populated country in Africa, has just recently started implementing desperately needed reforms; Ethiopia, the second-most populous nation, recently had a civil war; and political unrest and power shortages are still an issue in South Africa.

Until foreigners are more willing to relocate, such locations are not in the race to be a prominent sub-Saharan economic powerhouse.

On the other hand, a place that has a decent degree of English proficiency plus a beautiful environment all year will get an enormous amount of consideration, and that neatly matches Kenya.

Despite adverse reactions to the cost of imported food and energy, Kenya still saw growth last year at a pace of roughly 5.5%. Growth rates have been between 4% and 5% since 2004.

Kenya also benefits geographically in several ways. It has a huge coastline along the Indian Ocean, and research indicates that the economies of landlocked nations perform badly.

The ability to communicate with other nations is another benefit of having a coast, and Kenya has relatively simple access to China and India, two major markets and financial resources. In the present geopolitical environment, more sources are interested in East Africa than in much of West Africa.

 

Kenya, with a population of roughly 57 million, is unable to contend with Nigeria, which has a population of 222 million. However, East Africa has a bigger population than West Africa, with over 500 million people.

Kenya’s neighbour to the south, Tanzania, has more people than Kenya. Kenya, however, is far richer and has a better infrastructure, which extends to the digital sector as well as some of Africa’s most dependable internet connections.

 

Insofar as the globe is emphasising green energy more, Kenya too has a triumphant tale to share. Currently, more than 80% of the nation’s energy comes from renewable sources, and the environment is perfect for further solar power growth.

 

Kenya may be a desirable location for foreign businesses trying to improve their credentials as environmentally friendly. Nevertheless, high energy costs, which are partly a result of taxes and subpar regulation, have hampered expansion.

 

The argument against Kenya has further components. Even in comparison to other African countries, it has had trouble attracting foreign direct investment. Political instability, regulatory hurdles to entry, and corruption are still issues that should not be simply discounted.

Nevertheless, Kenya’s government has recently been stable, and the election of 2022 passed rather well. Major terror strikes, which often originate from organisations in Somalia, are becoming harder for the authorities to stop. There is a strong possibility that these issues will improve as Kenya becomes wealthy.

 

Additionally, it’s feasible that sub-Saharan Africa won’t produce any significant corporate hubs at all.

 

South Africa is going to continue to be the major commercial hub in the South; the United Arab Emirates will continue to develop into Africa’s financial hub; Lagos will have the greatest startup activity; and London, Beijing, and India will assume increasingly significant roles in the continent’s economic future.

 

Nevertheless, the vastness of Africa’s geography and its expanding population serve as solid arguments in favour of Kenya’s continued expansion. Even if a manufacturing facility or service centre just serves East Africa, it makes sense to locate it close to Nairobi or Mombasa.

 

Tanzania and Uganda, Kenya’s closest neighbours to the west and south, both have English-speaking populations, and Tanzania may soon rank among the most populated nations in the world.

 

East Africa is growing like the rest of Africa. And the simplest and most dependable method to wager on it is probably Kenya.