Nairobi grabs top slot in FDI destinations in Africa

Nairobi has been ranked among top 10 African cities with the highest growth potential and is expected to grow rapidly in the next five years. MasterCard’s African Cities Growth Index (ACGI) 2015 released last week ranks Nairobi at position nine out of the 49 large cities surveyed.

The ranking is attributed to its level of digitisation (supported by a high mobile penetration) that has connected a huge number of the population to bank accounts. The survey also said that increased Foreign Direct Investments (FDI), better living standards in the urban areas and more businesses setting base in Nairobi, were pointers to increased growth in the near future.

“Nairobi features in the top 10 cities with high growth potential, recording a 37.2 index value increase in 2014 to 41.3 in 2015,” said the survey.

The study has largely relied on the capital formation, political stability, GDP per capita, governance and household consumption of the city to make its conclusions. Nairobi has excelled in terms of growth by the mentioned indicators, beating its other peers; Addis, Durban and Cape Town.

What makes Nairobi rank way higher than its South African counterparts is that “it has the highest percentage of the population with a financial account,” this is made easy by the mobile money transfer systems.

 

Source: Daily Nation
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Published on: 5th December 2015