Kenya Ranks 3rd In Top Emerging Markets By Foreign Direct Investment (FDI) In 2024
BusinessCan someone explain like I'm 5 what this actually means? Good for the country? Good for Wanjiku? Harder times for Wanjiku paying back FDI? Why is our inflation so much higher than others? What exactly are these FDI projects?
It's good for Kenyans. Government made the environment friendly for foreign companies to invest, build facilities or partnerships with local businesses for services and production.
Projects include - Private-Public Partnerships contracts for infrastructure, CIC call centres in Tatu city SEZ, Jumbo Car dealership NSEZ, Eco Cloud Data Centre/ Green Ammonia - Olkaria Park, Green Hydrogen Facilities - Mombasa, Geothermal, wind & Solar plants, Start ups. Textile plants. Semiconductor fabrication.
It creates jobs, high skill and tech transfer, money also flows into local businesses. Speeds up industrialization.
Inflation is at +5.0%. due to some factors; shilling appreciation, increased taxes, fuel cost and drought/flood induced food shortages.
Thank you.
I like FDI .What would your thoughts be around this type funding I feel if Kenyan banks were to give the right business people locally insane amounts of money to do the same thing ,with a local start up culture we would achieve the better results with the right teams .(basically do what Korea ,Japan and China did.)
Might I be overestimating the amounts of money Kenyan Banks handle maybe ,but I also think more small businesses should start consolidating to form small partnerships or companies and access capital through NSE ,however its understandable the fragmentation is quite dire as well as a really archaic NSE currently in terms of identifying the changing times.
I think i find my initial response a better strategic play.
Yes ,I acknowledge the FDI but it isnt really FDI if the companies will set up shop locally and pay a handful number of employees the same current local pay .Its the same rabbit hole being replicated by many FDI corporations.
Invest a ton of money pay the first team a lot of money to get a good mgmt team after penetrating the market in 2 years expand and pay the larger new team the normal low basic salary.
However this is a skewed opinion based solely on the few FDI companies I've had the chance to see their operations.