You are likely to earn more rewards in East Africa than elsewhere

NAIROBI, KENYA: Eastern Africa offers investors a reward score above the continent’s average, according to the 2018 Africa Risk-Reward Index from Control Risks and Oxford Economics.

Ethiopia and Tanzania lead the list of the top rewarding economies for the second time, with Kenya following in fourth position after Côte d’Ivoire.

Strong improvements on both the reward and the risk side make Uganda one of the strongest performers of the index.

“Ethiopia with its impressive reward score of 7.94 out of 10 offers opportunities for investors specifically in the agriculture and manufacturing sectors which continue to demonstrate high levels of growth,” said Daniel Heal, senior partner for East Africa at Control Risks.

The government’s new privatisation push in the energy, telecoms and logistics sectors also offer new and exciting opportunities for investors.

Above average

However, the country’s risk score of 5.79 is also above the continent’s average of 5.54 due to the ongoing political transition under new Prime Minister Abiy Ahmed “who will need to delicately balance the interests of the political elite with opposition demands for the opening up of political space.”

For Kenya, 2018 is an exciting year for investment opportunities after a protracted 2017 election period and reduced investment levels, said Mr Heal.

“Kenya’s reward score remains one of the highest in sub-Saharan Africa and the ruling Jubilee Party continues its pro-business policies,” he said.

“However, improving relations between the Government and the Opposition will be instrumental in ensuring that political tensions do not undermine economic growth, and more prudent fiscal and macroeconomic policies are needed to maintain positive economic prospects.”