Recent survey conducted by KPMG, Tanzania has emerged as the preferred investment destination in East Africa, surpassing Kenya and other nations in the region. This development sheds light on a significant shift in investment sentiments within the continent.
According to KPMG’s findings, 15 percent of investors and top executives in the region expressed a preference for investing in Tanzania, while 14 percent favored Kenya. This surprising turn of events highlights Tanzania’s growing prominence in the African investment arena, despite Kenya’s status as the largest economy in East Africa.
This decision has been further justified by Tanzania’s rapidly growing economy, which has solidified its position as the third-best investment destination in Africa, according to KPMG’s ratings. While South Africa has claimed the top spot as the most preferred investment location in Africa, with 50 percent of investors showing a preference for the nation, Nigeria secured the second position with 30 percent of investors favoring investments in the country.
KPMG’s report not only reflects the current investment preferences but also projects a significant economic shift in the near future. The report foresees South Africa overtaking Nigeria in 2024, thereby regaining its status as Africa’s largest economy.
This prediction signals a substantial change in the economic dynamics of the African continent, which will undoubtedly have far-reaching consequences. Apart from Tanzania’s triumph, KPMG’s rating placed Kenya and Ghana in the fourth position, each garnering 14 percent of investor preference. This underscores the broader competition among countries to attract investment in the region.
KPMG’s survey also highlights notable trends within the investment landscape in Sub-Saharan Africa. Both domestic and international investors are expected to increase their investments in the region over the next two years.
This indicates a growing confidence in the potential for economic growth and business opportunities within Sub-Saharan Africa. As a result, countries like South Africa, Nigeria, and Kenya, which serve as regional investment hubs, are anticipated to benefit the most from this optimistic trend.
The KPMG survey findings identify the oil and gas, consumer goods, mining, fintech, and industrial sectors as the primary areas attracting the bulk of investment. These sectors represent significant areas of opportunity for both domestic and international investors, further underscoring the evolving investment landscape in Africa.
KPMG survey offers a glimpse into the ever-changing world of African investments. Tanzania’s rise to the top of the East African investment hierarchy, the projected shift in economic power, and the favored sectors for investment all paint a dynamic picture of opportunities and challenges in the African investment landscape.
As investment interests continue to evolve, staying attuned to these trends is essential for investors looking to navigate the complex, yet promising, terrain of African markets.
