'Kenya named ‘most competitive in transportation’

Kenya has emerged as one of the most competitive sub-Saharan countries in transportation, communication, and financial services, according to the International Monetary Fund’s (IMF) Regional Economic Outlook: Sub- Saharan Africa. It quotes a World Bank report that identifies a “relative abundance of qualified professionals in Kenya employed in the intra- EAC service trade, to which should be added a strong entrepreneurial tradition,” as key drivers behind Kenya’s competitive positioning. “Kenya’s transport services have grown rapidly in recent years, as Kenya’s international airline company has firmly established itself in Africa, consistently realising growing passenger numbers,” says the IMF report. Government in Kenya and the region has played its role: “Growth in air and shipping freight have been made possible by increasing trade openness in the EAC (East African Community), partly owing to reforms in the shipping subsector and removal of explicit trade restrictions. “Moreover, Nairobi is a key transportation hub for Eastern and Central Africa and the largest city between Cairo and Johannesburg,” it says. The port of Mombasa is currently ranked fifth in Africa in terms of handling capacity, having recorded a 145% increase between 2006 and 2010. It serves more than a dozen countries. Capacity at Mombasa will improve by the widening of berths to accommodate larger ships and by the construction of a second container terminal, according to the report. The physical distribution of goods is being supported by improved infrastructure to handle data movement. Kenya has increasingly concentrated on hightech communication and technology services. These exports already account for more than 10% of total service exports, and close to 20% of total foreign direct investment inflows. Currently, the Kenyan government is in the process of establishing an ICT Park for BPO, which is expected to further boost service exports, according to the IMF report.