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Kenya: Third best place for FDI globally in 2024

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seems that Kenya’s efforts in cross-border investments are paying off if the latest report by the Foreign Direct Investment (FDI’s) annual Standout Watchlist is anything to go by. 

The report released in December 2023, showed that Kenya emerged as the third country globally that is expected to carry the strongest investment momentum into 2024 with an index score of 87.44.

According to the report, Kenya outranked all European nations and was the leading African nation in the ranking. From the ranking, three African nations made it to the top ten list; Kenya (third), Namibia (fifth) and Morocco (eighth).

Further, the list was dominated by Asian countries, with six countries featuring in the top ten list. Cambodia topped the overall list with 96.11, followed by the Philippines with 94.43. 

The study assessed the foreign direct investment opportunities of the world’s top 50 FDI destinations using data from the International Monetary Fund (IMF) and FDI markets.

The report factored in a country’s Gross Domestic Growth (GDP), projected inflation rate in 2024 and growth in FDI projects in the past two years.

FDI, in this case, primarily involves direct investments in businesses of a country by foreigners.

According to the report, Kenya’s GDP is expected to grow by 5.3 per cent, up from 5 per cent in 2023, with inflation relatively high at 6.6 per cent in 2024.

The rate dropped from 6.8 per cent in November according to Central Bank of Kenya data, showing a slight improvement in the ease of the high cost of living.

Kenya was also praised for experiencing historically high direct investment flows since 2021. 

One of the biggest FDI wins pinpointed in the report is the agreement between US-based pharmaceutical company Moderna and President William Ruto’s administration for the company to set up a Ksh78 billion plant in Kenya, the first of its kind in Africa.

“The country’s energy sector has also attracted very strong FDI interest, with Dubai-based AMEA Power announcing in September 2023 the intention to produce green hydrogen in Mombasa, with total investment estimated at Ksh359 billion ($2.29bn).”

Additional Source: Brian Kimani

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