1、TRADE AND INVESTMENT OPPORTUNITIES IN KENYA UNDER AGOA THE SAFARI COUNTRY,烏欖核高價收購 ,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 prod

2、ucts. Kenya will be hosting the AGOA forum between 4th to 6th August 2009.,INTRODUCTION,Your Ultimate Investment Partner,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 ca

3、pita:$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.,REGIONAL HEADQUARTERS,Nairobi-Capital

4、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.,NAIROBI- REG

5、IONAL 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 progr

6、am and Msafiri - Best inflight magazine,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 Securi

7、ties 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 u

8、nder the umbrella of the East African Securities Exchanges Association (EASEA).,NOBEL PRIZE WINNER,Wangari Maathai receiving her Nobel Prize from Ole Danbolt Mjs, Chairman of the Norwegian Nobel Committee, 10 December 2004,Home to the first African woman Nobel Prize Laureate, Prof Wangari Maathai.,T

9、OURISM,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,Enjoys cultural mosaic and linguistic tapestry based on ethnic diversity,SPORTS,Home to Olympic medalists and

10、perennial winners of Boston, Chicago and Los Angeles marathon.,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 ba

11、sed 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

12、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.,ACHIEVEMENTS,Structural

13、 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,Education,Since 2003 the Government implemented universal Free Primary school education a

14、nd also from January 2008 free tuition in secondary schools was introduced.,ACHIEVEMENTS,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

15、 and second after UK.,ACHIEVEMENTS,Nairobi Stock Exchange Capitalisation of the Nairobi Stock Exchange has grown tremendously. The successful conclusion IPOs especially for state owned corporations such as Safaricom and Telkom that were fairly oversubscribed is an indication of the vibrancy of the m

16、arket.,ACHIEVEMENTS,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,CHALLENGES,Achieving MDGs e.g complete elimination of poverty and hunger Unemployment for the

17、 youth Infrastructure constraints e.g ports, roads and airports Huge deficit in energy production ETC,VISION 2030,A globally competitive and prosperous nation with a high quality of life by 2030,Overarching vision,Economic,To maintain a sustained economic growth of 10% p.a over the next 25 years,Soc

18、ial,A just and cohesive society enjoying equitable social development in a clean and secure environment,Political,An issue-based, people-centered, result-oriented, and accountable democratic political system,Strategy,Plans and implementation,INVESTMENT OPPORTUNITIES UNDER VISION 2030,SIX KEY SECTORS

19、(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,TOURISM 3 Resort Cities: Coast, South Coast, Isiolo AGRICULTURE Improving va

20、lue 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 Marke

21、ts (Athi River) Building free trade port at the coast to “Bring Dubai to Kenya” servicing Eastern and Central Africa,FLAGSHIP PROJECTS,MANUFACTURING FOR THE REGIONAL MARKET Development of Strategy for Establishment of 2 special “economic clusters” related to industries located together Development a

22、nd 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 bank

23、ing sector to bring in fewer stronger, larger scale banks Implement legal and institutional reforms required for a regional finance centre,TAX AND INVESTMENT INCENTIVES,TAX INCENTIVES AVAILABLE IN KENYA,Tax incentives are mainly in place to promote investment or exports. Major tax incentives availab

24、le 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 in

25、cur 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 KENYA,Export Processing Zo

26、nes: 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,Manufacture under bond: also allow for duty

27、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%,IVESTMENT PROCEDURES AND GUARANTEES TO INVESTORS,One Stop Shop Kenya Investment Authority Registration of the busin

28、ess 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.,SECTOR SPECIFIC OPPORTUNITIES,AGRICULTURE,Largest sector

29、 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 exist

30、s in value addition/processing.,AGRICULTURE,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 be

31、longing to co-operative societies, who are about 700,000 in numbers.,AGRICULTURE,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 majo

32、r 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 - Investment Opportunities,Agriculture and Agro-processing Adding value to: Tea, coffee, cotton,

33、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,Developing high-tech

34、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

35、.,KNOWLEDGE BASED INDUSTRIES,Research & development Biotechnology Science & Industrial parks Information Technology enabled services Assembly lines,INFRASTRUCTURE AND UTILITIES,Energy Geothermal & coal powered electricity generation plants Solar Energy Plants and Wind Energy Generation LPG handling

36、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 UTILITIES,Road Infrastructure BOO and BOT or conc

37、ession. Ports Privatization and development of ports Rehabilitation of inland port facilities Telecommunications,ICT,The government is constructing an undersea Fibre Optic Cable from Mombasa to Fujaira to provide cheap international broadband connectivity.,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