By Morris Aron
Rwanda's capital, Kigali is slowly replacing Nairobi as the regional economic hub.
According to a research done by PriceWaterhouseCoopers (PwC), consultancy firm, chief executives cited economic uncertainty, increased volatility of the shilling against major currencies, and high-energy costs as some key issues pushing the Rwandan capital ahead of Nairobi in terms of investor preference.
"Kigali is increasingly being looked at as an ideal economic hub for the region, especially due to the elaborate infrastructure outlay for ICT compared to Nairobi," said Steve Okello, a partner and head of tax at PwC.
"Not much is being done to reverse the situation despite recognition of this development."
The revelation is bound to come as a shocker to policy makers and brand marketers, who have been accused of laxity because of failing to come up with initiatives to make Nairobi a competitive economic and financial zone in the region after years of basking in the limelight.
Industrialist Chris Kirubi called for an urgent taming of the shilling fluctuation trend to reassure local and international community that it is a temporary phenomenon.
Undisputed hub
Mr Kirubi also said it was imperative that a deliberate effort to reposition Nairobi as the undisputed regional financial and economic hub is undertaken.
"There is too much politicking at the expense of concrete intervention measures against the volatility of the shilling against major currencies that is now hurting investors," said Kirubi.
Since being allowed to join the East African community, Rwanda has been on the fast lane of reforms and investment.
Value addition
Currently, opportunities for investment in Rwanda include value addition in cleaning coffee and the processing of hides and skins for export, tourism — which is the second source of export earnings and continuing to grow.
Then there is mining, the construction industry and horticulture — which is expected to increase by 26 per cent in the next two years. This is in addition to the $65 million plan to transform Rwanda into a knowledge based centre by 2020, and make it the regional services hub and centre for excellence in ICT.
But even as the revelations come through, Nairobi is still enjoying its status. Just recently, the International banking group HSBC set up shop in Nairobi.
Visa International, a payment systems services company, also recently announced that it will start operations in Nairobi, while US bank JP Morgan Chase said it was also eyeing an office in the Kenyan capital.
Enhance trade
Muyemi Akinyemi, UBA chief executive, said the bank was keen on the regional economic block and will be introducing products to enable inter- and intra-country trade in the areas of energy, agri-business, and infrastructure, among others.
The findings were presented at the first United Bank of Africa (UBA) chief executives forum held at a Nairobi hotel.
