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Africa Logistics Properties (ALP) has opened a new warehouse facility at its West Logistics Park in Limuru, a move aimed at easing supply chain management for small and medium-sized enterprises. The new 107,639 square feet facility named Kyoga is part of the larger ALP West Complex which, upon completion, will comprise seven phases of up to 1,076,391 square feet of grade A warehousing. Speaking during the official opening of the warehouse, Trade, Investment, and Industry Cabinet Secretary (CS) Moses Kuria lauded ALP for the move and underscored the government’s commitment to attracting investors in the country. “I want to reiterate the commitment of the government to promote investments and welcome investors to create jobs and help increase income and improve Kenya’s competitiveness on the regional and global stages,” said Kuria. ALP Chief Executive Officer (CEO) Richard Hough reaffirmed the company’s commitment to providing quality warehousing for all businesses thus making the operations easier for its customers. “Our commitment to ensuring all our tenants, and by extension other businesses in Kenya, experience climate-smart and modern warehousing that meets their current and future needs. Kyoga, just as the Courtyard, our first development at ALP West, is designed for small and medium-sized enterprises to modern warehousing,” said Hough. He further noted that the energy and water-saving initiatives in the warehouse will enable the tenants to enjoy the facility in addition to reflecting on stronger bottom lines that will allow them to scale up and grow their businesses. Since 2017, ALP has been operating warehouses in Ruiru where many firms including e-commerce companies Twiga Foods and Copia have been operating. Source: Capital FM Kenya.

Kenya’s foreign direct investment (FDI) inflows are on the rebound after a lull in the last three years. The slowdown was due to the global economic slowdown triggered by the Covid-19 pandemic. According to the Kenya Investment Authority (KenInvest), the inflows point to a steady recovery to pre-pandemic levels, a trend expected to hold as the new government lays out its vision and earmarks strategic sectors to deliver economic transformation. KenInvest acting Managing Director Olivia Rachier said foreign investors have been developing keen interest in key sectors such as green energy, infrastructure, agricultural value chain, oil and gas and information technology. “We will proactively support investors through all avenues available to address their concerns whenever the need arises,” she said. The FDI is bolstered by the government’s intent to pursue sustainable energy production to respond to the climate change crisis. Ms Rachier said the plan is key to positioning Kenya among the integral players and respondents to global warming. The pandemic not only battered Kenya’s FDI stock but sent the entire global marketplace back to the drawing board regarding strategy as foreign investors adopted a wait-and-see attitude aimed at capital preservation. As the pandemic continues to subside, the impact it has had on economies is far from being mitigated. This is complicated further by the Russia-Ukraine war. Some countries are, however, coming up with innovative ways of building back better. Kenya continues to align her policies to the modern investment climate demands in a bid to position herself as a leader in investment attraction and retention. “The country’s seamless political transition during the just concluded polls is a testament to its resolve to claim Kenya’s leadership position as a haven where investors are assured of the security of their investments,” Ms Rachier said. Given that an estimated 42 per cent of the country’s gross domestic product (GDP) is derived from climate-sensitive sectors such as agriculture, manufacturing and tourism, an effort towards promoting responsible production and sustainable energy generation is a welcome relief to Kenya. “In the long run, the country will be able to manage with ease the effects of drought and floods. The trickle-down effect will have a positive impact on the overall economic performance.” Ms Rachier said the improved business environment brought about by government interventions in response to changes in investor needs has started bearing fruit. “This is evident considering the frequency and number of registered interests from investment groups as well as source country enquiries and investor-aligned delegations that the authority continue to receive.” In 2021, KenInvest registered and facilitated 167 foreign investment projects worth Sh47.44 billion, an encouraging feat during such an unpredictable period. Sectors that drew more interest were energy, construction, finance and manufacturing. Ms Rachier said the Netherlands and Mauritius were among the fast-rising source countries for Kenya’s FDI, joining the traditional source powerhouses – the UK, US, China and Japan. Source: Standard Newspaper.

Kenya is the second most preferred export destination in Africa, according to a survey of companies operating on the continent, signaling the country’s growing consumer power driven by rising population and incomes. The latest Pan-African private sector trade and investment committee (PAFTRAC) report indicated that Africa-based companies exported goods and services to Nigeria at 25.96 percent, Kenya at 23.89 percent followed by South Africa at 22.12 percent. Kenya’s performance was aided by the improved infrastructure including the standard gauge railway (SGR), which runs from Mombasa to Naivasha. “The inclusion of South Africa, Ghana, and Kenya among the leading trading nations is partly the result of the role that their international ports play in regional trade,” reads the report. One of the challenges with the SGR, however, noted by the private sector players surveyed was the railway did not transcend the country’s borders. “Where new railways are built, it often proves difficult to secure funding for linking transport infrastructure across borders. For instance, Kenya’s new standard gauge railway (SGR) runs between Mombasa and Nairobi but not yet between Nairobi and Kampala,” said the report. The country has also been importing from other African nations. Although Kenya is one of the world’s largest horticultural exporters, Nigeria imports flowers from Europe rather than Kenya, making this one of the challenges around intra-African trading. As of 2021, Kenya’s imports of goods and services were 20.1 percent of its gross domestic product. “As with exports, the main Anglophone markets are the main source of imports for the companies we surveyed. Kenya performs particularly well, cited by 28 percent of participants, marginally behind South Africa (28.3 percent) in first place,” said the report. The survey was administered to over 800 respondents, seeking to assess African private sector sentiment regarding the African trade prospects and landscape. The respondents were surveyed between March and June 2022. The represented companies had annual revenues of up to $250 million (Sh30.2 billion) and operating in agribusiness, manufacturing, education, and banking among others. Source: Business Daily Newspaper.

The African Continental Free Trade Area (AfCFTA) has unveiled a digital trading platform dubbed the AfCFTA Hub in efforts aimed at interconnecting national, regional and private digital applications to boost the ability of African SMEs to expand their scope. The launch was made during the Boma of Africa hosted to mark this year’s Africa Integration Day. The commissioning of the hub was done by Niger’s ex-President Mahamadou Issifou on behalf of the AfCFTA Secretariat during AfCFTA’s third anniversary fete convened jointly by the African Union (AU), the AfCFTA Secretariat, AfroChampions and the Africa Center for Disease Control and Prevention (Africa CDC). With the launch of the hub, every SME or start-up in the African Union is now entitled to a free AfCFTA Number that will aid them in the export of products across Africa through improved logistics, networking of retail outlets, integration of fintech and brand development support. The financing of the program, AU says, will be provided through the affiliated AfCFTA Caravan Initiative. Other entities that rendered support include Afreximbank, MTN, Ecobank, the Village Foundation, IC Publications, Dominion Television and APO. Other corporate supporters are big-league logistics companies such as RwandAir, Kenya Airways, Ethiopian Airlines and Asky. A hackathon competition awards ceremony was also held on the sidelines of the hub launch. The contest featured Small and Medium Enterprises (SMEs) and startups from Africa organised to showcase brand innovation and creativity. Among the hackathon winners included Nunya’s Naturals which bagged the Circular Economy Prize, TQay that went home with the Brand Equity Prize as well as Tropical Brands which was awarded the AfCFTA Readiness Prize. At the Boma, several AU Heads of States and business executives held discussions to examine the key collective strategies that the continent can use to achieve recovery from the Covid-19 crisis as well as manage the aftermath of the Russia-Ukraine conflict. Source: Business Daily Newspaper.