Kenya, Africa hold great promise for foreign investors

On a recent business visit to Nairobi, East Africa’s financial services capital, I was impressed by the progress Kenya has made in setting up institutions and making it easier for investors to do business.Any visitor interested in setting up a business will be happy to also see the massive investments in infrastructure that would enable them to access various parts of the country and to move their products.

Kenya’s position in East Africa, its investments, commitment to business and the existing protocols and agreements with other countries in the region are good for investors as the region boasts some very important economic indicators that are attractive to investment.

In recent years, we have witnessed a robust opening up of markets in Africa driven by a middle class that is increasing the continent’s interaction with the rest of the world and opening up opportunities for trade. Africa’s trading capability is strong and often underestimated. At the beginning of this decade, we made a decision at Pernod Ricard to expand our business in Africa.

The strategy worked as our revenues increased year over year by 15 per cent across sub-Saharan Africa. According to the African Development Bank, Kenya’s economy remains resilient due to its diversity; services contributed the highest proportion to GDP growth.

This is expected to continue as the country remains the leading regional hub for information and communication technology, financial, and transportation services.The recent investments in rail and road are potential growth drivers. We are encouraged that the business-enabling environment has improved as well since Kenya moved up 12 places to a ranking of 80 in the World Bank’s 2018 Ease of Doing Business report.

With continuity and consistency in these laudable efforts, Kenya can make progress in this global fight and inspire confidence in its ability to deal with the devious individuals and organised criminals who make it possible for counterfeit products to reach the markets. It also builds the confidence of investors in this market and sets a good pace for the region, of which Kenya is a well-known hub, and increases employment opportunities.

READ: Nairobi makes UN list of 4 top investment cities in Africa

At Pernod Ricard, we support above-the-board trade practices because we know what value it creates for the economies we operate in around the world. Here in Kenya, we have created employment directly and indirectly across the distribution chain through our distributors and the outlets that sell our products.

We are working to expand that value chain and effectively create more employment opportunities within the wider East Africa region.

Kenya is one of our key markets in Africa alongside South Africa, Nigeria, Ghana, Angola and Mozambique.

For us and other businesses doing legitimate import and distribution businesses to thrive and contribute positively to the economy, illegitimate goods need to be stopped.That way we can grow exponentially and create more employment opportunities for Kenyans.

Consumers will certainly appreciate it, we can expand employment opportunities and certainly, the economy will be better off for it.

We see it as requiring a collaborative approach backed by technology and robust enforcement by the authorities. As tax-paying entities with an interest in remaining good corporate citizens, producers and importers of goods should be prepared to help the government agencies keep track of the authentic goods and eliminate those that come in by the back door.

Working with the investors, the government also needs to have the policies required to make it possible for them to concentrate on ensuring that their customers continue to enjoy the quality products they deserve.

In return, our promise in an increasingly competitive environment is to always ensure that we place consumers at the centre of our strategic approach based on the idea that consumers are increasingly less likely to be loyal to a single brand, instead choosing freely from a variety. Everybody wins if we all work together.

Christian Porta, chairman and CEO, Pernod Ricard Europe, Middle East, Africa and Latin America.