This archive report was first published on 26 September 2019.
On September 26, 2019, Standard Chartered Bank released the Trade20 Index report, ranking Kenya third in the top 20 markets with the greatest potential for future trade growth.
The report suggests that Kenya's 'Big Four' development initiative is driving the country's increased trade growth potential. The initiative focuses on boosting manufacturing activities, achieving universal health coverage, improving food security, and supporting the construction of affordable housing.
Kenya's trade readiness score is particularly high due to infrastructure and ease of doing business improvements that surpass most other African nations. The administration has attracted external investment for substantial infrastructure development, including renewable energy projects.
According to Standard Chartered Kenya CEO, Kariuki Ngari, improvements in Kenya's ease of doing business ranking over the last few years have been driven by governmental reforms, including starting a business, access to electricity, registering property, and protecting minority investors.
The Trade20 Index determines each market's trade growth potential by analyzing changes within the last decade across a wide range of variables. The study examines 66 markets around the world and finds that African economies are making strong progress from a relatively low starting point.
Kenya is consolidating its position as the trading hub of East Africa, while Côte d'Ivoire is cementing its position as a West African trading hub. Ghana also performs well in the index, placing just outside the top 10.
According to the key findings of the Trade20 index, Côte d'Ivoire and Kenya have significantly improved their trade readiness, demonstrating that investments in infrastructure and business environment improvements are paying off.
Philip Panaino, Transaction Banking Head, West, Standard Chartered Bank, noted that Africa has the potential to become a much bigger player on the global trade stage, with numerous growth opportunities for trade and investment in the years ahead.
