Nairobi- Kenya has assured foreign investors of ready market for their goods and services, thanks to the growing consumer market in the region brought about by growing population that now stand at Sh41.8 m with annual growth rate of 2.7 per cent, according to an investment report released by KenInvest at the inaugural Kenya International Investment Conference (KIICO) taking place at KICC.
This, coupled with the growing middle class that has a taste for high end goods and services as evidenced by the country’s growth in Gross National Income (GNI) per capita which has been increasing at a Compound Annual Growth Rate (CAGR) of two per cent over the past 10 years, continue to attract international companies which have set up regional offices in the country.
While addressing investors, Prof. Githuro Wainaina, Chairperson Vision 2030 Delivery Secretariat, told investors that Kenya has thousands of professionals in every sector of the economy hence will not have to outsource personnel. He explained that apart from the rich labor source that the country’s large population will offer their companies, the dynamic population will consume their goods and services. He explained that luxury brands are lining up to have a piece of the wealth in Kenya, which has the fourth largest population of high net worth individuals in Africa. He cited the latest New World Wealth report that shows that the luxury sector generated revenues of $200 m (Sh17.2 b) in Kenya from the sale of high end cars, fine dining, food stores, hotel and lodges as well as clothing and accessories.
A business Mogul Chris Kirubi, who has shares in at least every sector of economy in the country, urged investors to come and benefit from the year round market for all goods and services in the country. He explained that although Kenya’s population is second to Tanzania in the region, aggressive economic activities championed by the hardworking population has made Kenya, a dominant economy in East Africa Community, a contributor to more than 40 per cent of the region’s Gross Domestic Product. He added that Kenya is experiencing a rising trend in urbanization, an aspect that is contributing to an increase in demand for high value goods.
Mr. Kirubi also briefed investors about the country’s devolved system of governance that enable them access huge household markets directly especially in rural areas. He said that investors in food, agriculture, health care and education can tap in the virgin rural market easily via county governments. According to Kenya Economic Survey Indictor 2014 report, at least 70 per cent of the country’s population is concentrated in rural areas.
The number of Kenyans classified as middle class has doubled in the last decade to almost a fifth of the population or 6.5 million Kenyans, data from the African Development Bank (AfDB) shows. This means that one out of every five Kenyans is considered middle class — a status mostly defined by tertiary educated persons holding salaried jobs or owning small businesses, urban residency and ownership of household goods such as refrigerators, phones, flat screen TVs and automobiles.
Speaking during the opening ceremony of the KIICO, industrialization Cabinet Secretary Aden Mohammed told investor that Kenyans are socially dynamic and friendly hence should capture opportunities presented by the all time peaceful coexistence to set up business empires in the country. He lauded international cooperation in telecommunication, tourism, transport and building and construction for banking on the existing market opportunities in Kenya and set up their regional and continental offices in Nairobi. He for instance hinted that the robust middle class in Kenya is forcing international motor industries like Toyota to set up like Toyota set up manufacturing plant in Kenya to meet rising demand for vehicles. He also cited over subscription of Samsung smart phones in Kenya that has forced the company to set up regional stalls in the country to demonstrate Kenyans spending power. The Cabinet Secretary challenged investors to consider technology in production of their goods and services to be at par with the country’s youth oriented market. Youths contribute to at least 70 per cent of Kenya’s population.
No comments:
Post a Comment