East Africa to record robust growth

By Ronald Owili

The East African region is expected to record a significant growth with positive flow of investments in the region.

This is despite the economic setbacks expected in sub-Saharan Africa this year as a result of a drop in oil and commodity prices.

CFC Stanbic Bank is now positioning itself to target businesses looking to set up in the region with Kenya acting as a springboard, in order to boost intra-African trade.

The bank will however be assessing the amount of risk associated with the venture in order to finance these businesses.

Various economic analysts have tipped Kenya to record at least 6% economic growth in 2016. Among sectors that are to drive this growth include infrastructure, ICT, agriculture and financial.

As an oil importer, the country is also expected to rip big as oil prices hover around 40 dollars a barrel, easing pressure on the local currency with drop in import bill expected to fall to about 1.1 trillion shillings this year.

East African Community according to CFC Stanbic is still attractive for investments as the bank holds east Africa trans-regional conference to woe businesses looking to set base in the region.

With a view of boosting intra-Africa trade currently at 12%, the conference targets other markets such as Tanzania, Uganda, Zambia, Malawi and South Africa.

The bank is however cautious of financing businesses aligned to the oil and gas sector, as well as commodity as prices plummet.

With prevailing conditions in the banking sector marred with uncertainty, the bank is not ruling out any future expansion when it comes to consolidation.




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