(Nairobi) – Kenya is seen as one of the top African countries for attracting Foreign Direct Investments (FDIs), with experts praising its favorable conditions for businesses. Speaking at the inaugural Africa Venture Philanthropy Alliance (AVPA) conference in Nairobi, U.S. Ambassador to Kenya, Meg Whitman, highlighted several factors that make Kenya an attractive destination for international investment. These include its strong green energy mix, a highly skilled workforce, and political stability, which are drawing the attention of global firms looking to diversify their supply chains, particularly in the post-COVID-19 era.
Whitman noted that 93% of Kenya’s energy comes from renewable sources, making the country a leader in sustainable energy on the continent. She also emphasized the country’s workforce, which she described as “smart,” innovative, and highly productive, as a key asset for investors. “American companies and others are eyeing investments in Kenya,” she said, adding that Kenya’s workforce, characterized by low absenteeism, is particularly appealing to multinational corporations.
In addition to its skilled labor force, Kenya’s strategic position, especially with the Port of Mombasa, enhances its attractiveness for foreign investments. Mombasa’s location makes it a crucial hub for international trade, further solidifying Kenya’s role in global business.
Kenya is already making significant strides in attracting investment, having led the continent in startup capital flows last year, surpassing major economies like Nigeria and South Africa. The government is now focused on doubling its FDIs over the medium term, from $800 million (Sh 103.2 billion) in 2023 to at least $1.6 billion (Sh 206.4 billion) annually. However, Whitman stressed that a stable and predictable tax regime, alongside a conducive business environment, will be essential for sustaining this growth and continuing to attract investments, which are key to creating jobs.
The AVPA conference, which brought together social investors, policymakers, and entrepreneurs, also addressed the critical issue of financing the United Nations’ Sustainable Development Goals (SDGs). According to the 2024 Financing for Sustainable Development Report, the financing gap for achieving the SDGs across Africa is between $2.5 trillion (Sh 322.5 trillion) and $4 trillion (Sh 516 trillion) annually. In light of this, the AVPA is working to mobilize capital for impact-driven projects, particularly those that address social challenges in key sectors such as healthcare, education, and gender equality.
Frank Aswani, the CEO of AVPA, called the event a “call to action” for stakeholders across Africa to collaborate in mobilizing resources to close the SDG financing gap. The conference also saw the launch of the AVPA Africa Social Impact Exchange (ASIEx), which will house the Catalytic Pooled Fund (CPF). This fund aims to drive social investment across sectors like education, health, and agriculture, while also focusing on unlocking funds for small and medium enterprises (SMEs) and supporting youth and women entrepreneurs.
Aswani pointed out that Kenya has made notable progress in achieving several SDGs, particularly in healthcare, education, gender equality, and climate action. He also stressed that Africa is at a crucial moment, with vast opportunities to accelerate progress towards the SDGs by 2030. Faustina Fynn-Nyame, Executive Director of the Children’s Investment Fund Foundation, added that catalytic capital and strategic enablers are needed to close the bankability gap and de-risk high-impact projects. By harnessing Africa’s untapped domestic capital, she believes that the continent can unlock its growth potential and make significant strides in achieving sustainable development.