INVESTMENT IN AFRICA

A portfolio by Dubai Chamber of Commerce and Industry, opening in Ghana, Ethiopia and Nairobi.

To the African soil

The United Arab Emirate (UAE) is intending to invest on the African soil for a number of reasons. The 29% of the total UAE GDP was the oil sector while the remaining 71% of UAE total GDP is non-oil output in the year 2014. UAE is aiming to diversify its export markets globally. UAE have overseen a risk in high volatility of international commodity prices and it poses a macroeconomic instability risk.

Over the last 15years Africa has emerge as an attractive investment destination because of positive demographic factor, the supported robust Real GDP growth,expanding urbanization and to the rising number of households with discretionary spending.

The estimated consumer spending is projected to reach $1.4 trillion in 2014. More than 100million households have sufficient income to spend on discretionary goods and services as well as the basics. The African continent is viewed to be predominately a rural continent however; its cities are a growth economic force. 40% of the African’s one billion people live in cities it is projected with the increase in the demographic factor in our cities today in Africa it is forecasted that the GDP is bound to rise to a combination of $1.7 trillion i.e. in 18 top most cities in Africa.

The infrastructure need for it improvement in Africa need increases as the investors settle in the African soil. More roads, buildings, water systems and much more infrastructural requirement.

The economic world in Africa is becoming a great concern as it arouses the interest of the majority investors. The business and the regulatory reforms developments, the continent is offering a lucrative business opportunity in many sectors including among other agro-processing industries, such as food and beverages manufacturing,

leather goods, textiles, and wood products.

The African land is offering attractive tourism which is a strong investment sector, construction, retail market and pharmaceutical market.

Kenya is the market for Dubai’s product

Trade in Kenya is stable and supportive of the strength of the two countries. Kenya is now the fifth largest economy in sub-Saharan Africa and offers an attractive combination of growing economic groundwork and a vibrant market economy. The country is strategically located and a member of East African Community (EAC) and Common Market for East and Southern African (COMMESA), hence a gateway to East Africa.

Initially the giant Dubai Chamber of Commerce and industry (DCCI ), which represents the UAE has investors, has recently opened liaison offices in Ghana and Ethiopia and targets to open another in Nairobi early next year as part of a strategy to Grow business and investment ties with Africa. Kenya still retains at position 3 as Dubai trade partners in Africa in 2014. Let see what Dubai prospectors has for Kenya and Africa at large.