TANZANIA SURPASSES KENYA AS THE REGION’S FINEST INVESTMENT LOCATION

For investors considering the region in the next two years, Tanzania has edged out Kenya as the top investment destination.

A survey of 150 C-suite and senior executives in the region was conducted by the advisory firm KPMG, and 14 percent of the respondents said they would consider investing in Kenya. Kenya and Ghana are tied for fourth place among preferred capital destinations, behind South Africa (50 percent), Nigeria (30 percent), and Tanzania (15 percent).

Dealmakers anticipate an increase in investments in sub-Saharan Africa over the next two years, with economies that act as regional investment hubs, like South Africa, Nigeria, and Kenya, poised to gain the most from this encouraging trend.

According to poll results, the majority of inward investment is anticipated to go into the industrial, consumer goods, mining, fintech, and oil and gas sectors.

The respondent group was evenly split between domestic investors (located in SSA) and foreign investors, with a combination of 70 percent strategic investors and 30 percent financial investors.

According to a KPMG analysis, the SSA area reported 297 merger and acquisition deals worth a total of $19.2 billion (Sh2.87 trillion) last year.

“Approximately 74% of respondents, including 71% of international buyers, said they are thinking about making an investment or acquisition in SSA in the next two years. Additionally, 77 percent of all respondents are thinking about investing more money into current acquisitions, showing a commitment to growing their market share in this region, according to a survey by KPMG.

Based on the executives’ four-year experience in SSA deal-making, a survey was given to them. The conclusions have been made in light of the region’s recent capital flight as a result of the strong returns being offered in developed markets.

Due to exchange losses while remitting dividends, weakening currencies have also made investors apprehensive of committing cash in the area. Moving returns outside of the continent has become more challenging due to the shortage of hard money.

When making regional acquisitions, investors should embrace a longer investment horizon and be prepared to reinvest dividends and profits when cyclical FX shortages occur, according to KPMG.