Kenya shook off security threats perpetuated by the Al-Shabaab terror group to attract Sh115 billion in foreign direct investments in 2014, more than double what the country got the previous year.
This is according to the African Economic Outlook (AEO) 2015 launched by the African Development Bank (AfdB) on Monday in Abidjan, Ivory Coast.
The amount is, however, still well short of the highs of 2008/2009 (Sh163 billion) before a global economic crisis saw FDI figures slide back below Sh100 billion.Investment flows to the country more than doubled last year on the back of increased investor preference in Kenya as a regional business hub, defying growing security threats that have crippled the tourism sector.
The report says the planned $14.5 billion (Sh1.4 trillion) Konza Technology City is further expected to attract investments in business process outsourcing, software development and data centres.
A total of 16,000 direct jobs are set to be created with the planned development by 2019 and 200,000 by 2030, says the report.
Plans to privatise State corporations will also draw foreign cash.
Apart from Kenya, other African countries such as Tanzania, Uganda and Zambia are increasingly taking a prominent position on investors’ radar, especially with a focus on consumer goods.
In 2015, FDI to Africa are expected to grow by 12 per cent, reaching Sh5.3 trillion ($55 billion). Egypt is projected to maintain its position as the largest recipient, with investments worth Sh624 billion ($6.5 billion) followed by Morocco with Sh499 billion ($5.2 billion), Mozambique at Sh480 billion ($5 billion), South Africa at Sh403 billion ($4.2 billion) and Congo attracting Sh269 billion ($2.8 billion).