- Kenya is one of the regional hubs on the continent and has promising GDP growth. Kenya was recently voted the 15th most attractive destination in Africa.
- Kenya has undertaken consistent reform to support an enabling environment – the country ranks third in Africa on the Ease of Doing Business index.
- Nairobi is the primary communication and financial center of East Africa. Kenya has the region’s best transportation links, communications infrastructure, and trained personnel. These services can facilitate doing business in Kenya and the Horn, where Kenya is used as an entry point to these other markets.
- Kenya borders Somalia, Ethiopia, and South Sudan and 35% of the 1.2M diaspora Somalis were in Kenya in 2015. This presents an opportunity to invest in and understand the opportunity for Somalis, but actually conduct the business from Kenya.
- Somalia’s economy relies heavily on remittances, and economic benefits to diaspora populations could increase remittances that would benefit Somalia. In 2016, remittances to Somalia reached USD 1.4B, accounting for 23% of the GDP; higher than any form of foreign assistance.
- Some Somali businesses are managed remotely from Kenya. Strengthening FDI to Kenya could also benefit these businesses.
South Korean Alignment
- South Korea’s government has provided scholarships to Kenyan government officials to support skills development for workers on the LAPSSET Corridor Project – an infrastructure project across Kenya, Ethiopia and South Sudan.
- In 2012, LG announced that it would invest USD 2.4B in research and development for products relevant to the east and central African markets. With its growing middle class, Kenya would provide a ready market for these products.
- Kenya, Ethiopia and other countries have been major recipients of South Korean aid aimed at funding initiatives for achieving the Sustainable Development Goals, targeted at health services, education, and rural development. In 2016, South Korea pledged USD 25M for developing multipurpose water resources in Kenya.
Contact us to learn more about investing in the Horn of Africa.