Kenya is the second most preferred destination in Africa for multinational corporations seeking to set up shop, according to a US data vendor that tracks emerging markets. Frontier Strategy Group ranked Kenya second with a score of 23.17 per cent after Nigeria which was top on the continent and globally with a score of 29.57 per cent. Globally, Kenya was fifth behind Saudi Arabia (24.69 per cent), Vietnam (24.72 per cent) and Argentina which was second (24.72 per cent). The index is based on input from 200 multinational corporations such as Coca Cola and General Electric. Multinational corporations in technology, consumer goods, industrial and financial services sectors have been opening regional and continent headquarters in Nairobi in recent years. Google, Visa, MasterCard, KFC, Pepsi, Travelport and Dow Chemicals are multinationals corporations that have chosen the capital city as either their regional or Africa headquarters. The growth of a consumer class and Nairobi becoming a key gateway for East Africa are some of the reasons that are attracting the foreign firms. Related indices have also shown a bullish approach for Kenya such as US-based analysis firm MSCI. The MSCI Frontier Index increased the weighting for Kenyan stocks to 4.8 per cent from three per cent last week. This is expected to see an increase in capital flows. The government also expects that more conglomerates will come to invest in technology, financial services, agriculture and infrastructure.
Posted on: Mon, 27 Oct 2014 12:45:14 +0000
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