Kenya aims to achieve middle income status by 2030 through unprecedented 10% annual economic growth, as outlined in its Vision 2030 development plan. However, it has fallen short of this target and has just 15 years remaining. Several sectors are seen as key to driving growth, including tourism, agriculture, manufacturing, and financial services. Challenges include low levels of value addition and processing in agriculture and other sectors. The document advocates for reforms and development across sectors to maximize their potential and put Kenya on track to become a middle income country by 2030.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow from $52.75 billion in 2017-18 to $103.70 billion in 2020, registering a CAGR of 27.86%.
- Total consumption expenditure in India is projected to increase from $1,595 billion in 2016 to nearly $3,600 billion by 2020, growing at a CAGR of 22.57%.
- The rural FMCG market offers significant potential for growth, expected to increase from $29.4 billion in 2016 to $220 billion by 2025. In FY2018, rural consumption
Africa tapping into growth opportunities challenges and strategies for cons...Dr Lendy Spires
Africa represents a significant growth opportunity for consumer products companies due to its growing population, increasing urbanization, and rising incomes. While risks must be considered, companies can succeed in Africa by adapting products to local needs, investing in communities, and taking a long-term view. Coca-Cola and Unilever are cited as examples through strategies like product modifications, partnerships with small retailers, and sustainable sourcing programs. When expanding operations, companies should build local presence, leverage first-mover advantage, and gain government relationships.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in 2017-18.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021 to reach nearly US$3,600 billion by 2020.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$29.4 billion in 2016, as rural consumption drives growth in the sector
Nigeria Food and Beverage Industry Report 2018Fab Westafrica
Africa’s continent is home to more than 1.1 billion people and will account for one-fifth of the world’s population by 2025.Unsurprisingly, Nigeria is by far the largest grocery retail market in Africa, with over 20 significant urban population centres. This report depicts how being ahead of your competitors, you can’t afford to miss 2019 edition of Food and Beverage Expo Nigeria.
The document provides an overview of the fast-moving consumer goods (FMCG) sector in Africa. It discusses key drivers of FMCG performance including population growth trends, urbanization rates, and income levels on the continent. Specific FMCG categories like food, beverages, and personal care products are examined. The largest FMCG markets in Africa like Nigeria, Kenya, and Ghana are also highlighted. The FMCG sector is poised for significant expansion in Africa as poverty declines and consumer spending patterns evolve to include more discretionary items.
This document discusses the economic potential and opportunities in Africa. It notes that several international organizations predict Africa is on the brink of significant economic growth, similar to previous growth periods in China and India. The document outlines some of the key drivers of business development in Africa, such as high growth economies, urbanization, and the developing middle class. It also discusses some of the main challenges to business development, including diversity of consumers, poor infrastructure, governance issues, and income disparities. The document argues that Africa represents a major opportunity for multinational corporations and that significant economic growth and development is underway, especially in cities across the continent.
The document discusses opportunities for doing business in Africa. It notes that Africa has a growing population and economy, with many countries experiencing high GDP growth rates. Key sectors of interest for foreign investment include infrastructure, manufacturing, mining, agriculture and energy. Challenges still exist such as some political instability, but many countries have embraced market reforms and privatization to attract more foreign direct investment to support Africa's continued economic development.
These are slides from an economics revision webinar on aspects of the Indian economy.
Population: 1.3 billion; Urbanization: 33%
Life expectancy: 68 years (average)
HDI ranking 131st/188
Per capita GNI (PPP) $5,663
% living on less than $1.90 a day (PPP) 21%
% of population under-nourished: 15%
Remittance inflow (net) +3.3% of GDP
Gini coefficient: 0.35
Palma Ratio: 1.5
Successful diversification into manufacturing
Globally competitive in many service industries
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow from $52.75 billion in 2017-18 to $103.70 billion in 2020, registering a CAGR of 27.86%.
- Total consumption expenditure in India is projected to increase from $1,595 billion in 2016 to nearly $3,600 billion by 2020, growing at a CAGR of 22.57%.
- The rural FMCG market offers significant potential for growth, expected to increase from $29.4 billion in 2016 to $220 billion by 2025. In FY2018, rural consumption
Africa tapping into growth opportunities challenges and strategies for cons...Dr Lendy Spires
Africa represents a significant growth opportunity for consumer products companies due to its growing population, increasing urbanization, and rising incomes. While risks must be considered, companies can succeed in Africa by adapting products to local needs, investing in communities, and taking a long-term view. Coca-Cola and Unilever are cited as examples through strategies like product modifications, partnerships with small retailers, and sustainable sourcing programs. When expanding operations, companies should build local presence, leverage first-mover advantage, and gain government relationships.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 27.86% to reach US$103.70 billion by 2020 from US$52.75 billion in 2017-18.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021 to reach nearly US$3,600 billion by 2020.
- The rural FMCG market in India is expected to grow to US$220 billion by 2025 from US$29.4 billion in 2016, as rural consumption drives growth in the sector
Nigeria Food and Beverage Industry Report 2018Fab Westafrica
Africa’s continent is home to more than 1.1 billion people and will account for one-fifth of the world’s population by 2025.Unsurprisingly, Nigeria is by far the largest grocery retail market in Africa, with over 20 significant urban population centres. This report depicts how being ahead of your competitors, you can’t afford to miss 2019 edition of Food and Beverage Expo Nigeria.
The document provides an overview of the fast-moving consumer goods (FMCG) sector in Africa. It discusses key drivers of FMCG performance including population growth trends, urbanization rates, and income levels on the continent. Specific FMCG categories like food, beverages, and personal care products are examined. The largest FMCG markets in Africa like Nigeria, Kenya, and Ghana are also highlighted. The FMCG sector is poised for significant expansion in Africa as poverty declines and consumer spending patterns evolve to include more discretionary items.
This document discusses the economic potential and opportunities in Africa. It notes that several international organizations predict Africa is on the brink of significant economic growth, similar to previous growth periods in China and India. The document outlines some of the key drivers of business development in Africa, such as high growth economies, urbanization, and the developing middle class. It also discusses some of the main challenges to business development, including diversity of consumers, poor infrastructure, governance issues, and income disparities. The document argues that Africa represents a major opportunity for multinational corporations and that significant economic growth and development is underway, especially in cities across the continent.
The document discusses opportunities for doing business in Africa. It notes that Africa has a growing population and economy, with many countries experiencing high GDP growth rates. Key sectors of interest for foreign investment include infrastructure, manufacturing, mining, agriculture and energy. Challenges still exist such as some political instability, but many countries have embraced market reforms and privatization to attract more foreign direct investment to support Africa's continued economic development.
These are slides from an economics revision webinar on aspects of the Indian economy.
Population: 1.3 billion; Urbanization: 33%
Life expectancy: 68 years (average)
HDI ranking 131st/188
Per capita GNI (PPP) $5,663
% living on less than $1.90 a day (PPP) 21%
% of population under-nourished: 15%
Remittance inflow (net) +3.3% of GDP
Gini coefficient: 0.35
Palma Ratio: 1.5
Successful diversification into manufacturing
Globally competitive in many service industries
• Consumer expenditure in SSA
equaled nearly $600 billion in
2010, accounting for almost eight
percent of all emerging-market
spending, and is expected to reach
nearly $1 trillion by 2020.
• Consumer spending in South
Africa and Nigeria accounts for 51
percent of SSA's total expenditure.
• Poverty in SSA is decreasing
rapidly—from 40 percent in 1980 to
less than 30 percent in 2008—and is
expected to fall to 20 percent by 2020.
• By 2050, almost 60 percent of
people in SSA will live in cities,
compared with 40 percent in 2010.
This means 800 million more people
will live in urban environments.
• By 2012, over 50 percent of all
Africans—or more than 500 million
people—will own a mobile phone.
By 2014, this portion is expected to
increase to 56 percent (more than 600
million people), giving Africa one of
the world’s highest mobile usage rates.
The document provides a SWOT analysis of India's New Economic Policy introduced in 1991 in response to a balance of payments crisis. The three main strengths are: 1) High economic growth increasing GDP and reducing poverty; 2) Increased foreign investment and integration in the global economy; 3) Dismantling of licensing and opening private industry. The key weaknesses are reduced government spending and increased inequality. Main opportunities are foreign investment, technology transfer, and improving competitiveness. Primary threats include increased economic fluctuations, challenges for agriculture and rural populations, and uneven distribution of benefits.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% from 2016 to 2020, reaching $103.7 billion by 2020 from $49 billion in 2016.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021, reaching nearly $3,600 billion by 2020 from $1,595 billion in 2016.
- The rural FMCG market in India is expected to grow to $220 billion by 2025 from $29.4 billion in 2016, as rising incomes and growing
The document summarizes recent economic developments in Nigeria based on new GDP data released by the Nigerian government. It finds that productivity, not population growth, has been the largest driver of GDP growth since 2010. However, Nigeria's productivity and GDP per capita are lower than comparable developing economies due to its unusual urbanization process, which has not transformed the economy through migration from agriculture to more productive manufacturing and services jobs. Strengthening government capabilities will be important to ensuring future growth is more inclusive.
AFRICA - Nigeria's renewal - McKinsey & CompanyOliver Grave
The document discusses Nigeria's recent reclassification as Africa's largest economy based on new GDP data released in 2014. It notes that Nigeria's GDP growth since 2010 has been driven more by productivity than population growth, but that weaknesses in agriculture and urbanization have prevented most Nigerians from benefiting. It argues that strengthening government capabilities will be essential to making growth more inclusive and achieving better social outcomes.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
The document argues that Kenya should prioritize domestic-demand led economic growth. It notes that over half of Kenya's exports are agricultural goods, which are outweighed by imports of manufactured goods. Growing domestic demand could help address this trade imbalance and support industrialization. The document discusses how countries like Brazil, India, and China have successfully pursued this strategy. It argues Kenya could do the same by improving income distribution, governance, access to financing, and policies to stabilize the economy. The tourism sector in particular could benefit from growing domestic tourism. Lessons from Japan's post-WW2 economic recovery show the importance of strategic government policies and investing in education and healthcare to develop human capital and a robust domestic market.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
ETHIOPIA: AN EMERGING MARKET OPPORTUNITYBisher Yousfi
Description of Assignment:
Using the information available in the case, plus your work in the pre-work (economic analysis on Ethiopia) to support your arguments, make a recommendation as to whether any of the companies in the case should enter Ethiopia, and explain why.
1) The document summarizes Nigeria's trade patterns and identifies potential competitor countries from Africa in key sectors under the AfCFTA.
2) It analyzes Nigeria's trade data and identifies Morocco as a key competitor in processed agriculture. Kenya and South Africa are identified as competitors in retail and trade, while South Africa and Egypt are seen as competitors in FMCGs.
3) The analysis looks at various economic indicators to select countries with comparative advantages to Nigeria in these sectors.
This document provides an overview of the consumer goods market in Africa and Nigeria from the perspective of Accenture. It notes that while Africa has a large population, its GDP is only 2% of the world's total due to challenges. However, Africa has significant potential from its arable land and natural resources. The market is becoming increasingly important as the continent's collective GDP and consumer spending are projected to grow substantially by 2030. Nigeria is highlighted as a key market that could become Africa's largest economy. The document outlines consumer segments, distribution structures, challenges of operating in Africa, and success factors for businesses, emphasizing the need for innovation, local partnerships, and understanding diverse African markets.
The document discusses emerging markets and compares the top 10 fastest growing emerging markets in 2005 and 2014. It finds that while the largest emerging markets by GDP have remained mostly the same, the composition of the fastest growing markets has changed significantly. In 2005, the top 3 fastest growing markets were China, Kuwait, and Kazakhstan, but in 2014 they were India, China, and Nigeria. The reasons for countries dropping or rising in growth rankings varied, such as economic diversification helping countries like Bangladesh and Nigeria accelerate, while dependence on oil hurt growth for Kuwait, Qatar and Saudi Arabia.
The document discusses the growth opportunities in the consumer market in Sub-Saharan Africa. Key points include:
- Consumer spending in SSA has grown 4% annually since 2000 and reached $600 billion in 2010, expected to reach $1 trillion by 2020.
- Factors fueling growth are a rapidly increasing population projected to reach 2 billion by 2050, significant decrease in poverty, and rapid urbanization where 60% of Africans will live in cities by 2050.
- Improving infrastructure like mobile phone access making over 500 million Africans reachable is enabling the consumer market growth.
Analysis of the opportunities and challenges of working in Africa, particularly for consumer facing companies. Includes strategies used by firms to overcome challenges
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
We are pleased to release the January 2019 Africa Market Update themed Mitigating rising pressures in sub-Saharan Africa economies. This report comes against the backdrop of a challenging year for economies in the region given a general rise in monetary and fiscal pressures in 2018. On the whole, we expect 2019 to present a litmus test for policy adjustments aimed at countervailing the growing headwinds faced by economies in sub-Saharan Africa notably from a monetary perspective. The report covers the economies of Nigeria, Zambia, Kenya, Tanzania, Uganda, Rwanda, Ethiopia and Ghana.
International trade plays an important role in India's economy, especially agricultural trade. While agriculture accounts for a large portion of employment and GDP, India has historically been a small player in global agricultural trade, with less than 1% of the world market. However, agricultural exports have grown in recent decades from $3725 million in 1992-93 to $7141 million in 2001-02. Major agricultural exports include tea, oilcakes, fruits, vegetables, spices and tobacco. Further reforms and investments are still needed to better integrate India's agricultural sector into world markets and increase its global market share.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
This document discusses opportunities for business and investment in Africa. It notes that Africa has a growing population and economy, with many countries experiencing high GDP growth rates. Key sectors highlighted for foreign investment include infrastructure, manufacturing, mining, agriculture and energy. Challenges still exist such as some political instability, but reforms have created a more business-friendly environment on the continent.
The importance of the informal economy for local economic development in africaDr Lendy Spires
The informal sector makes a huge contribution to economies in Sub-Saharan Africa, contributing nearly 55% of GDP and 77% of non-agricultural employment. Given this significant contribution, positive local economic development outcomes are unlikely without considering the potential and needs of the informal sector. The informal sector is important as it provides economic adjustment and livelihood opportunities, especially for the poor and unemployed, as formal sector jobs are insufficient. It is particularly important for poorer regions and localities due to the employment and income it provides.
Kenya has implemented various industrial policies aimed at fostering industrialization and developing a globally competitive manufacturing sector by 2030. However, past policies based on import substitution and structural adjustment did not lead to significant industrial development. Kenya's current policies focus on improving infrastructure, access to finance, value addition in key sectors, innovation, and workforce skills. However, challenges remain including high costs, lack of competitiveness, weak policy coordination, and dumping of imports. Kenya is working to address these challenges through strategies like developing special economic zones and improving regional connectivity and trade.
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• Consumer expenditure in SSA
equaled nearly $600 billion in
2010, accounting for almost eight
percent of all emerging-market
spending, and is expected to reach
nearly $1 trillion by 2020.
• Consumer spending in South
Africa and Nigeria accounts for 51
percent of SSA's total expenditure.
• Poverty in SSA is decreasing
rapidly—from 40 percent in 1980 to
less than 30 percent in 2008—and is
expected to fall to 20 percent by 2020.
• By 2050, almost 60 percent of
people in SSA will live in cities,
compared with 40 percent in 2010.
This means 800 million more people
will live in urban environments.
• By 2012, over 50 percent of all
Africans—or more than 500 million
people—will own a mobile phone.
By 2014, this portion is expected to
increase to 56 percent (more than 600
million people), giving Africa one of
the world’s highest mobile usage rates.
The document provides a SWOT analysis of India's New Economic Policy introduced in 1991 in response to a balance of payments crisis. The three main strengths are: 1) High economic growth increasing GDP and reducing poverty; 2) Increased foreign investment and integration in the global economy; 3) Dismantling of licensing and opening private industry. The key weaknesses are reduced government spending and increased inequality. Main opportunities are foreign investment, technology transfer, and improving competitiveness. Primary threats include increased economic fluctuations, challenges for agriculture and rural populations, and uneven distribution of benefits.
The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% from 2016 to 2020, reaching $103.7 billion by 2020 from $49 billion in 2016.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021, reaching nearly $3,600 billion by 2020 from $1,595 billion in 2016.
- The rural FMCG market in India is expected to grow to $220 billion by 2025 from $29.4 billion in 2016, as rising incomes and growing
The document summarizes recent economic developments in Nigeria based on new GDP data released by the Nigerian government. It finds that productivity, not population growth, has been the largest driver of GDP growth since 2010. However, Nigeria's productivity and GDP per capita are lower than comparable developing economies due to its unusual urbanization process, which has not transformed the economy through migration from agriculture to more productive manufacturing and services jobs. Strengthening government capabilities will be important to ensuring future growth is more inclusive.
AFRICA - Nigeria's renewal - McKinsey & CompanyOliver Grave
The document discusses Nigeria's recent reclassification as Africa's largest economy based on new GDP data released in 2014. It notes that Nigeria's GDP growth since 2010 has been driven more by productivity than population growth, but that weaknesses in agriculture and urbanization have prevented most Nigerians from benefiting. It argues that strengthening government capabilities will be essential to making growth more inclusive and achieving better social outcomes.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
The document argues that Kenya should prioritize domestic-demand led economic growth. It notes that over half of Kenya's exports are agricultural goods, which are outweighed by imports of manufactured goods. Growing domestic demand could help address this trade imbalance and support industrialization. The document discusses how countries like Brazil, India, and China have successfully pursued this strategy. It argues Kenya could do the same by improving income distribution, governance, access to financing, and policies to stabilize the economy. The tourism sector in particular could benefit from growing domestic tourism. Lessons from Japan's post-WW2 economic recovery show the importance of strategic government policies and investing in education and healthcare to develop human capital and a robust domestic market.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
ETHIOPIA: AN EMERGING MARKET OPPORTUNITYBisher Yousfi
Description of Assignment:
Using the information available in the case, plus your work in the pre-work (economic analysis on Ethiopia) to support your arguments, make a recommendation as to whether any of the companies in the case should enter Ethiopia, and explain why.
1) The document summarizes Nigeria's trade patterns and identifies potential competitor countries from Africa in key sectors under the AfCFTA.
2) It analyzes Nigeria's trade data and identifies Morocco as a key competitor in processed agriculture. Kenya and South Africa are identified as competitors in retail and trade, while South Africa and Egypt are seen as competitors in FMCGs.
3) The analysis looks at various economic indicators to select countries with comparative advantages to Nigeria in these sectors.
This document provides an overview of the consumer goods market in Africa and Nigeria from the perspective of Accenture. It notes that while Africa has a large population, its GDP is only 2% of the world's total due to challenges. However, Africa has significant potential from its arable land and natural resources. The market is becoming increasingly important as the continent's collective GDP and consumer spending are projected to grow substantially by 2030. Nigeria is highlighted as a key market that could become Africa's largest economy. The document outlines consumer segments, distribution structures, challenges of operating in Africa, and success factors for businesses, emphasizing the need for innovation, local partnerships, and understanding diverse African markets.
The document discusses emerging markets and compares the top 10 fastest growing emerging markets in 2005 and 2014. It finds that while the largest emerging markets by GDP have remained mostly the same, the composition of the fastest growing markets has changed significantly. In 2005, the top 3 fastest growing markets were China, Kuwait, and Kazakhstan, but in 2014 they were India, China, and Nigeria. The reasons for countries dropping or rising in growth rankings varied, such as economic diversification helping countries like Bangladesh and Nigeria accelerate, while dependence on oil hurt growth for Kuwait, Qatar and Saudi Arabia.
The document discusses the growth opportunities in the consumer market in Sub-Saharan Africa. Key points include:
- Consumer spending in SSA has grown 4% annually since 2000 and reached $600 billion in 2010, expected to reach $1 trillion by 2020.
- Factors fueling growth are a rapidly increasing population projected to reach 2 billion by 2050, significant decrease in poverty, and rapid urbanization where 60% of Africans will live in cities by 2050.
- Improving infrastructure like mobile phone access making over 500 million Africans reachable is enabling the consumer market growth.
Analysis of the opportunities and challenges of working in Africa, particularly for consumer facing companies. Includes strategies used by firms to overcome challenges
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
We are pleased to release the January 2019 Africa Market Update themed Mitigating rising pressures in sub-Saharan Africa economies. This report comes against the backdrop of a challenging year for economies in the region given a general rise in monetary and fiscal pressures in 2018. On the whole, we expect 2019 to present a litmus test for policy adjustments aimed at countervailing the growing headwinds faced by economies in sub-Saharan Africa notably from a monetary perspective. The report covers the economies of Nigeria, Zambia, Kenya, Tanzania, Uganda, Rwanda, Ethiopia and Ghana.
International trade plays an important role in India's economy, especially agricultural trade. While agriculture accounts for a large portion of employment and GDP, India has historically been a small player in global agricultural trade, with less than 1% of the world market. However, agricultural exports have grown in recent decades from $3725 million in 1992-93 to $7141 million in 2001-02. Major agricultural exports include tea, oilcakes, fruits, vegetables, spices and tobacco. Further reforms and investments are still needed to better integrate India's agricultural sector into world markets and increase its global market share.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
This document discusses opportunities for business and investment in Africa. It notes that Africa has a growing population and economy, with many countries experiencing high GDP growth rates. Key sectors highlighted for foreign investment include infrastructure, manufacturing, mining, agriculture and energy. Challenges still exist such as some political instability, but reforms have created a more business-friendly environment on the continent.
The importance of the informal economy for local economic development in africaDr Lendy Spires
The informal sector makes a huge contribution to economies in Sub-Saharan Africa, contributing nearly 55% of GDP and 77% of non-agricultural employment. Given this significant contribution, positive local economic development outcomes are unlikely without considering the potential and needs of the informal sector. The informal sector is important as it provides economic adjustment and livelihood opportunities, especially for the poor and unemployed, as formal sector jobs are insufficient. It is particularly important for poorer regions and localities due to the employment and income it provides.
Kenya has implemented various industrial policies aimed at fostering industrialization and developing a globally competitive manufacturing sector by 2030. However, past policies based on import substitution and structural adjustment did not lead to significant industrial development. Kenya's current policies focus on improving infrastructure, access to finance, value addition in key sectors, innovation, and workforce skills. However, challenges remain including high costs, lack of competitiveness, weak policy coordination, and dumping of imports. Kenya is working to address these challenges through strategies like developing special economic zones and improving regional connectivity and trade.
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While protectionist policies in the US caused volatility in 2019, Africa has been moving towards free trade through agreements like the African Continental Free Trade Area (AfCFTA) that aims to increase intra-African trade by over 50%. The total economic output of Sub-Saharan Africa is predicted to reach $2 trillion by 2020, up from $300 billion in 2000, due to economic reforms, population growth, and new technologies. Private capital will be important for Africa's growth as many opportunities are not publicly listed, such as infrastructure, energy, education, and real estate projects that can see spending increases of over 7% annually.
This document summarizes the economic potential of Kenya for investors. It discusses House of Major Limited, a strategy firm based in Nairobi with expertise in doing business in Kenya and Africa. It then provides details on Kenya's strong economic growth over the past two decades, with GDP growth over 330% since 2000. Kenya has become a middle-income economy and Africa's 8th largest, though poverty reduction goals remain. The document outlines opportunities in sectors like technology, which has attracted global companies, as well as Kenya's educated, young workforce. It discusses the Kenyan government's role in improving the business environment and increasing transparency.
The Kenya Budget Statement for the Fiscal Year 2016/2017
was presented to Rev. Mutava Musyimi, the Chairman of the
Budget and Appropriation Committee of the National Assembly,
by Mr. Henry K. Rotich, Cabinet Secretary for Finance on
8th June 2016 under the theme “Consolidating Gains for a
prosperous Kenya.”
Nigeria is now Africa’s leading economy, overtaking South Africa last year to become the continent’s largest nation in terms of GDP. Yet to take its rightful place among the world’s top emerging markets, the country must overcome a series of obstacles. Most pressing are economic diversification, job creation and a more effective conversion of growth into what matters most: rising incomes for the country’s 173m citizens.
One change-maker for all three goals will be the country’s vast network of micro, small and medium-sized enterprises (SMEs).
This document provides strategies for companies to consider when entering African markets. It discusses understanding the market opportunity in Africa through developing insights on consumer spending trends, behaviors, and segments. It also outlines steps for crafting an effective market entry strategy, including developing the right product or service value proposition, overcoming sourcing and manufacturing challenges, establishing effective distribution, and optimizing marketing and promotion. The overall framework presented includes gaining market insights, defining the value proposition, determining the market entry strategy, addressing sourcing and production issues, choosing the best distribution approach, and deploying marketing campaigns.
The document outlines Niger Republic's financing strategy for 2020-2025. It aims to transform the economy by harnessing untapped resources, driving infrastructure development, and attracting foreign investment. The strategy estimates $3 trillion will be needed over 5 years, with 45% ($1.35 trillion) from domestic financing like taxes and bonds, and 55% ($1.65 trillion) from international sources like the World Bank and foreign companies. Key areas of focus include electricity, infrastructure, education, food security, and small/medium enterprises. The goal is reducing poverty by 80%, unemployment by 70%, and increasing foreign direct investment by 90%.
This document discusses Ethiopia's economic development and challenges. It notes that Ethiopia faces its worst drought in 50 years, putting over 10 million people at risk of famine and threatening its recent economic gains. However, it also discusses Ethiopia's achievements, including strong economic growth over the past decade, cutting poverty levels, and progress on development goals. The document argues that Ethiopia needs continued international support to consolidate its successes and transition its economy from agriculture to manufacturing and industry. It highlights Ethiopia's case to investors for trade and investment at the World Economic Forum, with the potential to achieve further progress and development.
Pathway for sustainable development in nigeriaKunle Anwoju
The document discusses sustainable development pathways and financing strategies for Nigeria, outlining the economic framework and infrastructure financing needs of the country over the next few decades. It examines sources of international and domestic development financing available to Nigeria, such as multilateral development banks, pension funds, capital markets, and government revenues. The document proposes working with multilateral banks to address barriers to accessing financing sources and unlock private investment that can help meet Nigeria's projected $3 trillion infrastructure financing needs by 2044.
Runner Automobiles Limited began in 2000 focusing on motorcycles in Bangladesh. Over 16 years, it has invested heavily in production technology, increasing capacity to 500 motorcycles per day across 15 models. Its vision is to be the leading motorcycle manufacturer in Bangladesh and expand globally. Kenya represents an opportunity for motorcycle expansion due to its growing market and supportive policies. While competition and challenges like corruption and infrastructure exist, Kenya's economy relies on foreign investment and exports, with the motorcycle industry contributing over $2.2 billion annually in taxes.
1) The document discusses key economic challenges facing Pakistan such as a large current account deficit, high budget deficit, and inefficient public spending that has hindered development goals.
2) It proposes several growth levers that could help diversify and sustain economic growth, such as promoting services exports, increasing investment in infrastructure and low-cost housing, formalizing the undocumented economy, and boosting agriculture value addition through CPEC cooperation.
3) Addressing issues highlighted in surveys like reducing business costs and taxes, as well as catering to specific needs across provinces, will be important for the upcoming federal and provincial budgets.
To maintain its share of the continent’s agriculture GDP by 2030, Nigeria will need to grow its agriculture sector revenues by a compounded annual growth rate (CAGR) of 4.7% annually. To ensure this is achieved, agriculture budget to GDP will have to be sustained by at least 7% annually. It is estimated that agriculture is Africa’s largest economic sector, representing 15% of the continent’s total GDP. Nigeria contributes 14% of Africa’s agriculture GDP. The World Bank forecasts that by 2030, the food market in Africa will grow to be a US$1 trillion industry. Nigeria will need to intensify its investments in improving agriculture yield and integrating the value-chain over the next decade to effectively capture a significant share of the US$1 trillion market.
The Deloitte Consumer Survey Consumer Review. Africa: A 21st century reviewKenyaSchoolReport.com
This document discusses opportunities for consumer businesses in Africa. It finds that Africa's economy is growing rapidly, driven by a rising middle class as wealth spreads beyond elites. The population is young and increasingly urban, and digital technologies are allowing Africans to adopt new services. A survey of youth in four African countries shows they are optimistic, brand-conscious, and engaged via mobile phones. While challenges remain, opportunities exist for companies willing to invest and innovate long-term in Africa's evolving consumer markets.
Fast Moving Consumer Goods in Nigeria - How to enter the marketMarc Zander
The document discusses opportunities for FMCG companies in the consumer market in Nigeria. Nigeria has a large population that is growing rapidly, with a young workforce and a rising middle class with increasing incomes. It is seen as one of the key markets in Africa for FMCG products now and in the future. While Nigeria presents huge potential, it also has risks such as corruption, terrorism, and difficulties doing business that companies must consider when developing strategies to enter the market. The document recommends starting with a distribution model to take advantage of Nigeria's growth potential.
Private sector development and partnership strategyDr Lendy Spires
The document presents IFAD's strategy for promoting private sector development and partnerships to benefit rural poor people. It discusses how the economic environment in rural areas has changed with the private sector now playing a larger role, though constraints still exist. The strategy involves policy dialogue to support local private sector development, investment operations, and partnerships to leverage investments and knowledge. It aims to help the rural poor and private sector operators overcome constraints to make their relationships more profitable and reduce poverty.
Africa will have about 500 million young people by 2030. 157 of the world’s 310 mobile money services in 2021 were in Sub-Saharan Africa. Africa had a US$495bn share of the US$767bn handled by mobile money worldwide. Mobile
phones account for about 75% of all online traffic in Africa. Africa has potential to unlock more than $3 trillion in consumer spending. In the five largest consumer markets alone—Nigeria Egypt, South Africa, Morocco,
and Algeria—the African Development Bank estimates that there will be 56 million middle-class households with disposable incomes of nearly $680 billion.
Analysis Group estimates that the Metaverse could contribute $40 billion to Sub-Saharan Africa’s GDP by 2031.
How to Heal Ailing Shilling With AgribusinessPatrick Ajwang
This document discusses ways for Kenya to stabilize its currency, the shilling, through increasing agricultural exports. It notes that Kenya currently relies heavily on imports which increases its trade deficit and weakens the shilling. The document argues that Kenya should focus on modernizing and commercializing agriculture since it has a comparative advantage in farming. Specifically, it recommends intensifying food production, increasing value-added agricultural exports, and developing agro-industries to process farm outputs. This would help bridge the import-export gap, strengthen the shilling, ensure food security, and create employment opportunities for Kenyans. Tourism and higher education are also seen as potential sources of foreign currency, but agriculture should be the backbone of the economy.
Report covers economic and business trends in Nigeria, Kenya, Tanzania, Gabon, Uganda and Rwanda. In Nigeria, the report sheds light on the contraction of the economy in Q1, 2016 and what this portends for the investment climate. As always, we have included a snapshot of the deals landscape in the continent.
Opening speech by Mr Ramathan Ggoobi, Permanent Secretary/Secretary to the Treasury at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Remarks on the Financial Sector Development Strategy by the Permanent Secreta...
TBM_ OCT_2015_GEORGE (1)
1. T
he journey towards becoming a globally
competitive and prosperous country is anchored
on radical and holistic transformation of
the country’s social, political and economic
structures. However any significant steps to be made
on this front are heavily hinged on independent factors
such as macroeconomic stability, continued governance
reforms and infrastructural development, innovation and
technology enhancement among others.
To attain middle income status, Kenya needs to be
experiencing unprecedented economic growth at a rate of
10 percent annual growth every year until 2030. Since the
launch of the ambitious action plan, almost 8 years ago not
once has the country registered growth in close proximity
to the set target and with just 15 years to go it is evidently a
race against time.
However falling short of the blueprint projections
shouldn’t sweep under significant notable strides made by
the country. A Bloomberg Report for 2015 placed Kenya as
one of the fastest growing economies ranking at 3rd
place
just behind China and Indonesia with growth estimates ex-
pected to exceed 5 percent. Though the statistic is an indi-
cator of propitious times that lay ahead, economic growth
doesn’t necessarily translate to improved living conditions.
The extent to which growth reduces poverty levels is
solely dependent on the degree of involvement by those on
the lower end of the socioeconomic structure. Moreover it
is an obligatory requirement of Millennium Development
Goals whose number one goal is eradication of extreme
poverty and hunger.
Vision 2030 master plan clearly elucidates specific
sectors of the economy that bear the greatest responsibility
in aiding the country through the transition to middle in-
come status one of them being tourism.
Fortifying economic
drivers to achieve full
industrialization
It is 7 years since the launch of the country’s development blueprint Vision 2030, a master plan that was
conceived with an objective of guiding Kenya on the road towards an economic prosperous future.
By George Wainaina
16 | THINK BUSINESS • OCTOBER 2015
ANALYSIS
2. Tourism
Hitherto, tourism was one of the main non-agricul-
tural foreign exchange earners, a vital source of revenue
that is being hampered by a wave of security threats leading
to decreased numbers of tourist arrivals.
Recent statistics from World Travel and Tourism Council
indicated that last year Kenya’s tourism and travel sector’s
direct contribution to the GDP stood at 4.1 per cent which
translates to Ksh 220.6 billion. The report further high-
lights that total contribution by the tourism industry to the
GDP was at Ksh. 561.8 billion which accounts for 10.5 per
cent of the Gross Domestic Product. By 2025 it projects that
the tourism industry will be experiencing annual growth of
5.1 percent every year in the coming decade.
For this to happen there is need for increased facil-
itation and infrastructural development to help surge the
numbers. Despite having a similar tourist attraction capac-
ity as Malaysia , Kenya is grappling with 1.8 million visitors
whereas the latter boasts of having numbers to the tune of
30 million.
An action plan under the Ministry of Industrialization
and Enterprise Development clearly shows that the gov-
ernment is cognizant of the fact that despite the vulner-
ability associated with the sector, efforts geared towards
increasing the industry’s competitiveness and developing
the value proposition for the visitors. Under the MOIED
blueprint it has plans to fully capacitate tourist parks in the
country since currently 7 out of 26 parks receive 80 percent
of the total number of visitors.
Agriculture
By the year 2030, Kenya hopes to promote an inno-
vative, commercially oriented and modernized agricultural
sector. It hopes to achieve this by transforming key insti-
tutions in the agricultural and livestock sector to improve
quality and enhance productivity.
Today agriculture still remains the undisputed for-
eign exchange earner with more than half of Kenya’s ex-
ports related to agriculture like tea and horticulture.
During the launch of the MOIED (Ministry of Indus-
trialization and Enterprise Development) cabinet secretary
Adan Mohammed emphasised on the need to increase our
agricultural exports and attach identified opportunities in
agro-processing that build on the vast agricultural poten-
tial.
Tea is a staple of Kenya’s exports raking in over US$1
billion annually and this happens without any value ad-
dition since 97 percent of the commodity is exported in
bulk form. This is replicated across the agricultural sector
with only 16 percent of all exported agricultural output un-
dergoes processing. This is in contrast to our East African
counterparts Tanzania and Uganda where they process 27
percent and 34 percent of their agricultural exports respec-
tively.
In the industrial blueprint it notes that the country
can attract a 50–100 percent price premium by promoting
“Made in Kenya” brands internationally with a feasible po-
tential to attract US$ 200 million in value addition and cre-
ate an extra 10,000 jobs.
Alike when it comes to processing of our agricul-
tural exports, doubling of the quantities being processed
could earn a further US$ 600 million and put an additional
110,000 people under employment.
Textile and apparel
Since the signing of the African Growth and Opportu-
nities Act in 2000, textile and garment export have grown
to roughly US$ 415 million. The act has been successfully
extended for another 15 years making this the opportune
moment to leverage on the opportunity to increase our ex-
ports.
Despite having an advantage over other low-cost
countries in the partnership, Kenya accounts for only 0.4
percent of the US$ 84 billion American textile market
whereas nations like Bangladesh that are 9 times more ex-
pensive than Kenya commands 6 percent of the US market
share.
Leather
Kenya has one of the largest livestock herds in Africa
approximated at 60 million heads and though it has a well
established leather sector it remains underutilized. In this
sector the issue of unfinished exports prevails again since
90 percent of Kenya’s US$ 94 million leather exports are
unfinished wet blue leather. Facilitating for processing of
finished leather and leather goods would create an addi-
tional 35,000 jobs and inject a further US$ 150- 250 million
to the GDP and also contribute to substituting a portion of
the US$ 86 million in shoe imports yearly.
Wholesale and retail trade
The 2030 blueprint envisions an empowered informal
sector that is able to raise earnings by being granted the
opportunity to transform itself into a part of the informal
sector by increasing efficiency by reducing constraints be-
tween consumer and the producer, diversifying the product
range and incorporating innovation.
Growth in the whole sale and retail sector has been
impressive with a consistent annual growth of 8.8 percent
in over a period of 5 years resulting in creation of 1.6 million
OCTOBER 2015 • THINK BUSINESS | 17
ANALYSIS
3. new jobs. Growth in this sector is
directly proportional to growth of
the middle and upper class who
form the bulk of the urban con-
sumer market.
The retail space is expand-
ing and local establishments are
spreading their tentacles to oth-
er East African countries. For-
eign interest in the country’s fast
growing retail sector with com-
panies from Europe especially
pitching camp. Spanish clothing
retailer Zara commenced opera-
tions last year via a distribution
agreement with local retailer
Deacons while French retailer
Carrefour also set up shop around
the same time. South African based retail chains Foschini
and Edgars are planning to open outlets in 2015.
Kenya remains the entry route for companies keen
to gain a foothold in East Africa. However, the bureaucrat-
ic challenges associated with establishing a new business
in Kenya remain a key obstacle for foreign firms aiming to
start operating in the country as a result, many foreign in-
vestors are seeking acquisitions.
Manufacturing
The manufacturing sector accounts for nearly 20 per-
cent of total foreign direct investment (FDI) inflow, while
the manufacturing base has remained at 11 percent of the
GDP for the past 10 years.
As a significant contributor to the GDP, the country’s
manufacturing sector has been stagnant in recent years,
and it has lost international market share. A report by The
World Bank dubbed ‘Kenya Economic Update 2014’ cited low
overall productivity and large productivity differences in
firms across subsectors point to lack of competition which
allows low-productivity firms to remain in business.
The report further indicates that a weak business en-
vironment is the key constraint to the growth of the manu-
facturing sector in the country. Obstacles to doing business
affect this sector more than any other due to the capital
intensity of investments involving the sector. A robust en-
vironment that can accommodate processing of goods till
finish will require steady supply of electricity at relatively
convenient pricing but more importantly streamlined and
efficient trade policies that encourage competitiveness.
The manufacturing industry is the second highest
employer accounting for 17 percent of jobs available today
and industry experts are hinting that unlocked to its full
potential, the statistics can double that.
Financial services sector
On this front Kenya can tap itself on the back, start-
ing from the financial services providers. The country
boasts of a progressive, liberal banking sector that has en-
abled the development of local businesses by encouraging
free movement of capital and providing financial products
which is fundamental for economic development. On ac-
count of a World Bank Global Findex for 2014, almost three
quarters of Kenyans reported having access to a formal fi-
nancial instrument.
Also to be hailed is the involvement of Kenyan banks
in the SME segment which is reported to have increased re-
markably over the past few years. Research conducted by
Fin Access Business from 2009 to 2013, shows that total
SME lending portfolio by December 2013 stood at Ksh 332
billion representing 23.4 percent of the banks’ total loan
portfolio.
Experts in the industry portend heightened relations
between financial institutions and the SME sector but this
would be catalyzed by having authentic data on SME finan-
cial markets. Banks therefore lack updated data to inform
product development and expansion strategies and policy
makers have scarce information on challenges, risks and
gaps in the market.
Small and Medium enterprises (SMEs) are not to be
taken lightly. The sector accounts for a whopping 50 per-
cent of people in employment today which translates to
Factbox
• 50 percent percentage of employment created by SME sector.
• US$3.8 billion Agro- imports entering region that could be replaced by local
production.
• US$ 29 Trillion The market size of countries with major trade agreement
with Kenya.
• 4th Kenya’s ranking in the global mobile payment readiness market.
• 3 Days Time it now takes to register a business with the ease of doing busi-
ness reforms
• US$ 55 Billion 5th largest economy in the Sub –Saharan Africa.
• 1 Million Containers of throughput in the port of Mombasa per given year.
• 100 Percent Increase in manufacturing jobs from industrial transformation
programme initiatives.
18 | THINK BUSINESS • OCTOBER 2015
ANALYSIS
4. MINISTRY OF INDUSTRIALIZATION AND ENTERPRISE DEVELOPMENT
5th largest
economy in SSA
Market size of
countries with
a MAJOR trade
agreement
with Kenya
IN mobile payment
readiness
domestic population
REGIONAL
population
Time to register a business with
Ease of Doing Business Reforms
CONTAINERS of Throughput in
the port of mombasa per year
44 million
3 Days
4th GLObally$29 TRillion
13 MILLION
1 million
I
Increase in value
of leather when
manufactured
into shoes
size of our current leather market
IN MANUFACTURING JOBS FROM INDUSTRIAL
TRANSFORMATION PROGRAMME INITIATIVES
Percent of employment
created by SME sector
(11 Million)
Agro-imports entering region that could
be replaced by local production
TONNES of TUNA CAUGHT IN
THE INDIAN OCEAN YEARLY
100% INCREASE
12X $94 Million
%
$3.8 BILLION
1 MILLION
MINISTRY OF INDUSTRIALIZATION AND ENTERPRISE DEVELOPMENT
5th largest
economy in SSA
Market size of
countries with
a MAJOR trade
agreement
with Kenya
IN mobile payment
readiness
domestic population
REGIONAL
population
Time to register a business with
Ease of Doing Business Reforms
CONTAINERS of Throughput in
the port of mombasa per year
44 million
3 Days
4th GLObally$29 TRillion
13 MILLION
1 million
Increase in value
of leather when
manufactured
into shoes
size of our current leather market
IN MANUFACTURING JOBS FROM INDUSTRIAL
TRANSFORMATION PROGRAMME INITIATIVES
Percent of employment
created by SME sector
(11 Million)
Agro-imports entering region that could
be replaced by local production
TONNES of TUNA CAUGHT IN
THE INDIAN OCEAN YEARLY
100% INCREASE
12X $94 Million
%
$3.8 BILLION
1 MILLION
II
roughly 11 million people. Moreover there is a significant
number of players in this category who have bloomed to
reach levels of complexity and are very ably participating
in more sophisticated value addition and export activities.
Initiatives to support SMEs such as SME accelerator
can help the sector grow by over US$ 150 million in GDP and
inject hundreds of thousands of manpower into the econ-
omy.
Kenya is undoubtedly a global leader in the mobile
money market and ranks 4th
globally in terms of mobile
payment readiness. The innovative use of mobile phone
technology to drive financial inclusion in Kenya has been
widely acclaimed around the world, an aspiration that is
embedded in the country’s blueprint for prosperity; vision
2030. The grand plan envisions a deeper and broader fi-
nancial sector whose main objective is improving the live-
lihoods of majority of Kenyans, financing growth of busi-
nesses and funding ambitious and transformative flagship
projects.
Almost 15 years ago, the country experienced a pro-
liferation of mobile phone technology in the market pro-
viding a suitable platform for Kenya to leapfrog access to
financial services. As at March 2014 the number of regis-
tered mobile money account holders stood at 26.2 million
with a mobile money transaction value averaging Ksh 192.6
billion per month.
Broad access to financial services has been made pos-
sible by mobile network operators (MNOs) leveraging their
technology, pervasive distribution networks, and partner-
ships with banks to deliver mobile financial services to un-
banked and underserved segments of the population.
Mobile money has enabled anyone in Kenya with ac-
cess to a mobile phone to perform basic financial transac-
tions without having to use a bank account or rely on riski-
er, less efficient methods like delivering cash in person. 59
percent of adults in Kenya are actively using mobile money
services and products on a 30 day basis.
As Kenya’s mobile money market evolves, the CBK
continues to anticipate and address challenges as they
arise, and has recently formulated a regulatory framework
to guide market conduct and consumer protection.
The National Payment System (NPS) Regulations
issued in 2014 have systematized many of the regulatory
practices developed since the introduction of mobile money
in 2007, when the regulator articulated a prudential frame-
work that laid out requirements in ‘letters of no objection’
to mobile operators. The regulations also address emerging
market conduct and ecosystem issues, such as competition,
interoperability, consumer protection, and governance.
OCTOBER 2015 • THINK BUSINESS | 19
ANALYSIS