Kenya has been ranked as the top investment destination in Africa, the Africa Investment Report 2023 has shown.
According to the report published by United Kingdom’s research-based firm Briter Bridges, Kenya beat giants including Nigeria, South Africa, and Egypt emerging top destinations for funding across the continent.
Kenya received the highest funding in 2023 – $806 million (KSh131 billion), followed by Egypt with $675 million (KSh110 billion), Nigeria at $575 million (KSh 93 billion), and South Africa closely behind at $565 million (KSh 92 billion).
The report revealed that Kenya, Egypt, Nigeria, and South Africa collectively account for a dominant 68 percent share of the continent’s total investment influx in 2023.
This concentrated growth reflects these nations’ attractiveness to investors and their increasing role as regional epicenters for international companies looking to expand across the continent.
“The top four markets, Kenya, Nigeria, South Africa, and Egypt continue to solidify their positions as the lead destinations for funding especially as they increasingly act as regional headquarters for companies expanding towards neighboring countries,” read part of the report.
Kenya’s neighboring countries, Tanzania and Uganda were ranked as emerging ecosystems that piqued investors’ interest in 2023.
“Several other locations are emerging as hotspots for funding largely driven by a few mega deals or new investors focusing on new geographies,” read part of the report.
A section of political and economic experts attributed this to the weekly protests organized by the country’s opposition immediately after the heated 2022 presidential elections.
According to leaders from the opposition wing, investors have been choosing neighboring countries like Tanzania and Uganda over Kenya due to the high taxation imposed by the new regime.
The Kenya Kwanza administration has increased taxes, a move that President William Ruto says will help the country stabilize economically as it will stop its overreliance on external debts.
