According to a new KPMG report, Tanzania has surpassed Kenya as the greatest investment destination for investors looking for opportunities in the East African area.
According to KPMG, 15% of senior executives in the region said they would invest in Tanzania, while 14% favored Kenya.
Kenya has the largest economy in East Africa.
South Africa and Nigeria, the continent’s economic powerhouses, dwarfed East Africans, with 50% and 30% of respondents choosing the two countries, respectively.
South Africa is expected to reclaim its status as Africa’s largest economy in 2024, surpassing Nigeria.
Ghana, which has suffered economic turmoil in the past year, tied with Kenya in the survey at position four.
The survey found that fintech, oil and gas, consumer products, and mining will drive most investments in the next two years.
The study asked business executives with experience in making deals to list countries they are considering an acquisition or investment in Sub-Saharan Africa over the next two years.
“In H2-2022, 150 C-suite-level and other senior executives were surveyed based on their experience in dealmaking in Sub-Saharan Africa (SSA) over the last four years,” KPMG stated in their report.
The survey featured both local and foreign investors.
“The respondent group was divided equally between domestic investors (i.e., based in SSA) and international investors (i.e., based outside of SSA),” the report noted.
“Among the domestic investors, 71 per cent were strategic investors and 29 per cent were financial investors. Among international investors, 69 per cent were strategic and 31per cent were financial investors.”
President William Ruto arriving in Tanzania for an official visit on October 22, 2022.