trade and investment opportunities in kenya under agoa the safari country l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY PowerPoint Presentation
Download Presentation
TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY

Loading in 2 Seconds...

play fullscreen
1 / 49

TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY - PowerPoint PPT Presentation


  • 249 Views
  • Uploaded on

TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY INTRODUCTION Africa is endowed with huge natural resources and is emerging as the new development frontier of the 21 st Century.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY' - andrew


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
trade and investment opportunities in kenya under agoa the safari country
TRADE AND INVESTMENT OPPORTUNITIES

IN KENYA UNDER AGOA

THE SAFARI COUNTRY

introduction
INTRODUCTION
  • Africa is endowed with huge natural resources and is emerging as the new development frontier of the 21st Century.
  • AGOA provides duty free market access to 39 SSA beneficiary countries for over 6,400 products. Kenya will be hosting the AGOA forum between 4th to 6th August 2009.
introduction3
INTRODUCTION

Your Ultimate Investment Partner

slide4
The Republic of Kenya is in East Africa and neighbours Ethiopia, Somalia, Tanzania, Uganda, Sudan.

Size:582,646 sq kms.

Population:37.2 million (2007)

GDP:$27 billion(2007)

Per capita:$3,000

KENYA - YOUR INVESTMENT & TOURISM DESTINATION

kenya at a glance
Kenya is a member of UN, AU, EAC, COMESA, ACP, Non Aligned Movement, and WTO among others. It hosts the only headquarters of UN outside New York, Geneva and Vienna i.e UNEP and Habitat.KENYA AT A GLANCE
regional headquarters
Nairobi-Capital City

Kenya is also a regional headquarters for numerous international Media and NGO Agencies. It also hosts regional offices of World Bank, IMF, IFC, WHO, UNDP, UNHCR, UNESCO, East African Development Bank, Eastern and Southern African Trade and Development Bank (PTA Bank) among others. 

REGIONAL HEADQUARTERS
nairobi regional air serivices hub
Regional air traffic and transit hub providing connections to most destinations in Africa, Europe, Asia and beyond.

In 2008 Travel News & Lifestyle Magazine voted Kenya Airways as African Airline of Choice, Best Regional Airline,Flying Blue voted the best Frequent Flier program and Msafiri - Best inflight magazine

NAIROBI- REGIONAL AIR SERIVICES HUB
centre for regional capital markets
Kenya has the largest Securities Exchange in East and Central Africa.

The NSE index market capitalisation for example increased by 314% from Kshs 112 Billion in 2002 to Kshs 792 Billion in 2006.

The three East African Securities Exchanges, namely the Nairobi Stock Exchange (NSE), Uganda Securities Exchange (USE) and Dar es Salaam Stock Exchange (DSE) have established a working relationship among them in the spirit of integrating and developing capital markets in the East African Community (EAC). The exchanges operate under the umbrella of the East African Securities Exchanges Association (EASEA).

CENTRE FOR REGIONAL CAPITAL MARKETS
nobel prize winner
Wangari Maathai receiving her Nobel Prize from Ole Danbolt Mjøs, Chairman of the Norwegian Nobel Committee, 10 December 2004

Home to the first African woman Nobel Prize Laureate, Prof Wangari Maathai.

NOBEL PRIZE WINNER
tourism
TOURISM

Origin of Safari and the most preferred tourist destination in Africa. The wild beest of masaai mara migration is now one of the 7th wonders of the world.

national heritage and pride
NATIONAL HERITAGE AND PRIDE

Enjoys cultural mosaic and linguistic tapestry based on ethnic diversity

economic background
ECONOMIC BACKGROUND

Achievements by the Government under

Economic Recovery Strategy (ERS)

Years: 2003-2007

Since 2003 the Government developed the ERS as a strategy aimed at revitalizing economic growth, wealth and employment creation based on three pillars of promoting economic growth, reducing poverty, and good governance. The focus has been macroeconomic stability, financial sector development, infrastructure development through private sector participation and revitalization of agriculture, trade, tourism and the manufacturing sectors.

economic growth
Growth Rates

Since 2002 the GDP growth rate has maintained a steady growth rate expanding from only 0.5% in 2002 to a high of 6.4% in 2006 and 7.1% in 2007. Despite the 2007 election stalemate and other global factors the economy grew by 3.5% in 2008.

Economic Growth
achievements
Structural reforms at the Kenya Revenue Authority has resulted in revenue collection growth of an average of 10% and above 20% of GDP per year thus enabling the government to fund 95% of the national budget.ACHIEVEMENTS
achievements16
Education

Since 2003 the Government implemented universal Free Primary school education and also from January 2008 free tuition in secondary schools was introduced.

ACHIEVEMENTS
achievements17
Tourism Growth by over 1.6 Million Visitors from Yr 2006 with earnings increasing to over 1 Billion US Dollars. International arrivals hit over 1.6 million in 2007 with US surpassing Germany in terms of arrivals and second after UK.ACHIEVEMENTS
achievements18
ACHIEVEMENTS
  • Nairobi Stock Exchange
  • Capitalisation of the Nairobi Stock Exchange has grown tremendously. The successful conclusion IPO’s especially for state owned corporations such as Safaricom and Telkom that were fairly oversubscribed is an indication of the vibrancy of the market.
achievements19
The government has embarked on a major overhaul and reconstruction of roads across the country to facilitate trade and investment and also reduce the cost of doing business.

Road network

ACHIEVEMENTS
challenges
CHALLENGES
  • Achieving MDG’s e.g complete elimination of poverty and hunger
  • Unemployment for the youth
  • Infrastructure constraints e.g ports, roads and airports
  • Huge deficit in energy production ETC
vision 2030

Vision

Strategy

Master Plan

Implementation

VISION 2030

A globally competitive and prosperous nation

with a high quality of life by 2030

Overarching vision

Economic

Social

Political

To maintain a sustained economic growth of 10% p.a over the next 25 years

A just and cohesive society enjoying equitable social development in a clean and secure environment

An issue-based, people-centered, result-oriented, and accountable democratic political system

Strategy

Plans and implementation

six key sectors growth drivers
SIX KEY SECTORS(GROWTH DRIVERS)
  • Tourism
  • Increasing Value in Agriculture
  • Better & More Inclusive Wholesale and Retail Trade Sector
  • Manufacturing for the Regional Market
  • Business Process Offshoring (BPO)
  • Financial Services
flagship projects
FLAGSHIP PROJECTS
  • TOURISM
  • 3 Resort Cities: Coast, South Coast, Isiolo
  • AGRICULTURE
  • Improving value gained in the production & supply chain through branding Kenyan farm products
  • Tana River Basin Agricultural Development Scheme
  • WHOLESALE & RETAIL
  • Creation of at Least 10 Wholesale Hubs and 1,000-1,1500 Produce

Business Groups (Maragua, Central Province)

  • Building at Least 10 “Tier 1” Retail Markets (Athi River)
  • Building free trade port at the coast to “Bring Dubai to Kenya” servicing Eastern and Central Africa
flagship projects25
FLAGSHIP PROJECTS
  • MANUFACTURING FOR THE REGIONAL MARKET
  • Development of Strategy for Establishment of 2 special “economic clusters” related to industries located together
  • Development and creation of 5 Small and Medium Enterprise (SME) Industrial Parks
  • BUSINESS PROCESS OFFSHORING (BPO)
  • To design and establish 1 major BPO Park in Nairobi that will have world class infrastructure developed by top international IT suppliers
  • FINANCIAL SERVICES
  • Facilitate the transformation of the banking sector to bring in fewer stronger, larger scale banks
  • Implement legal and institutional reforms required for a regional finance centre
tax incentives available in kenya
TAX INCENTIVES AVAILABLE IN KENYA
  • Tax incentives are mainly in place to promote investment or exports. Major tax incentives available include:
  • Investment Deduction Allowances (IDA): introduced in 1991 to encourage new investment,
  • Industrial Building Allowance: granted on cost of construction of buildings used for manufacturing purposes and also hotel premises,
  • Capital Expenditure on agricultural land: targeted at farmers who incur capital expenditure in the course of their operations
  • Mining deduction allowance: granted to businessmen involved in mining,
  • Import duty set off: allows import duty paid on import of capital equipment to be set off against income tax payable
tax incentives available in kenya28
Export Processing Zones: allow for duty and VAT free importation of inputs for production of export products within specified zones. Incentives include 10 year tax holiday, exemptions from stamp duty, non liability on income tax for non resident employees, etc,TAX INCENTIVES AVAILABLE IN KENYA
tax incentives
Manufacture under bond: also allow for duty and VAT free importation but require that corporation tax be paid,

Tax Remissions Export Office: TREO primarily involves VAT refunds since duty on most of their inputs is already at 0%

TAX INCENTIVES
ivestment procedures and guarantees to investors
IVESTMENT PROCEDURES AND GUARANTEES TO INVESTORS

One Stop Shop – Kenya Investment Authority

Registration of the business

Submit applications for approval by the Kenya Investment Authority.

Private/Public Partnership (PPP) in place

Kenya is a member of MIGA (Multilateral Guarantee Agency) an affiliate of World Bank and guarantees against non-commercial risks.

agriculture
Largest sector of the economy-tea, coffee, sugar, horticulture, meat, dairy products etc:

25% of GDP

TEA

Kenya is a leading producer of tea of which 95% of it is exported in bulk. Egypt is the leading export destination for Kenya tea in volume terms followed by Pakistan, UK, Afghanistan and Sudan. Potential exists in value addition/processing.

AGRICULTURE
agriculture33
COFFEE

Kenya is a producer of some of the best types of quality Coffee in the world. Coffee is important in the Kenyan economy due to its contribution to foreign exchange earnings, farm incomes, employment and food security to smallholder coffee farmers belonging to co-operative societies, who are about 700,000 in numbers.

AGRICULTURE
agriculture34
Kenyan Flowers

The flower industry has maintained an average growth of 20 per cent per annum. This has seen Kenya emerge as the largest supplier to the European Union, representing 31 per cent of their imports. The major market for Kenyan flowers is Holland with 69 per cent of all the Kenyan flower exports. Other destinations include UK accounting for about 19 per cent and Germany 6 per cent, among others.

AGRICULTURE
agriculture investment opportunities
AGRICULTURE - Investment Opportunities

Agriculture and Agro-processing

Adding value to: Tea, coffee, cotton, pyrethrum, and horticultural products.

Livestock products: processing of meat and dairy products.

Developing niche products and markets e.g. beef concentrates.

Irrigation projects: potential in arid and semi arid areas

Provision of agricultural extension services.

manufacturing
MANUFACTURING

Developing high-tech industries

Agro-processing

Manufacture of textiles, garments and apparels

Domestic and industrial products

Fast moving consumer goods

Electronic & electrical goods

Car assembly, among others

Manufacture of products to serve the regional market.

Petroleum products e.g. construction of more refineries.

knowledge based industries
KNOWLEDGE BASED INDUSTRIES

Research & development

Biotechnology

Science & Industrial parks

Information Technology enabled services

Assembly lines

infrastructure and utilities
INFRASTRUCTURE AND UTILITIES

Energy

Geothermal & coal powered electricity generation plants

Solar Energy Plants and Wind Energy Generation

LPG handling storage and bottling facility

Storage, distribution and product handling facility

Regional Electricity Distribution

Kenya-Uganda and regional pipeline extension

Construction of refinery

Exploration and production

Transmission lines

infrastructure and utilities39
INFRASTRUCTURE AND UTILITIES

Road Infrastructure

BOO and BOT or concession.

Ports

Privatization and development of ports

Rehabilitation of inland port facilities

Telecommunications

slide40
The government is constructing an undersea Fibre Optic Cable from Mombasa to Fujaira to provide cheap international broadband connectivity. ICT
information and communication
INFORMATION AND COMMUNICATION

Back office operations and call centers

Software development and consultancy

Internet services

Hardware assembly and repairs

Privatization of telecommunication providers

Provision of ICT training for growing market

Development of broad band Infrastructure

Investment in digital radio and television

housing
Demand for housing stands at about 200,000 unit against the supply of about 35,000 units per year especially for middle and lower income groups.HOUSING
mining
MINING

Precious metals: gold, silver.

Metallic minerals: titanium and iron ore.

Industrial minerals: Vermiculite, Limestone, Carbon dioxide, Zircon, Soda ash, Common salt, Fluorspar and Gypsum, among others

Building materials: Volcanic rocks and Tuffs, granite for dimension stone and silica sand.

Gemstones: Ruby, garnet, sapphire and tourmaline.

Potential for energy minerals: coal and oil.

tourism44
TOURISM

Film making

Recreation and entertainment facilities

Safaris

Conference tourism

Cultural tourism

Cruise ship tourism (ocean and lake)

Eco-tourism

Tourists Hotels

Game lodges

tourism45
Fastest growing sector of the economy. Earnings at$0.5billion in 1st half of 2007.A 25% increase over similar period last year.TOURISM
conference tourism
CONFERENCE TOURISM
  • Huge potential for expansion- (KICC)
international companies doing business in kenya
INTERNATIONAL COMPANIES DOING BUSINESS IN KENYA

Barclays Bank

Shell

Nation Media Group

British American Tobacco

end thank you
EMBASSY OF THE REPUBLIC OF KENYA

2249 R STREET, WASHINGTON, DC

2008, USA. TEL- 202-387-6101

EMAIL: commerce@kenyaembassy.com

END & THANK YOU