Citibank sees political uncertainty hurting business in E. Africa

“We favourably view Kenyan equities in 2010 and expect the NSE to close the year in the black. Our view is supported by lower interest rates, sufficient domestic liquidity, single-digit inflation, robust economic growth.”

In Tanzania, Citibank says growth slowed down in 2009 to 5.5 per cent compared to 7.4 per cent in 2008.

The country’s most important export commodity is gold whose prices have been rising steadily since last year but has now stabilised at just below $1100 an ounce.

In Uganda, the bank reports that growth slowed in 2009 to seven per cent compared to nine per cent in 2008 but that it is trying to tackle food security issues just like Tanzania is doing with its Kilimo Kwanza (or Agriculture First) policy.

Coffee, Uganda’s most important export, is seeing rising international prices judging by the futures market at the New York Board of Trade.