'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.