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The deal between Kenya and the UK aims to turn Nairobi into an African financial hub

What’s New in Kenya

Kenyan and British officials signed an agreement on Tuesday to promote investment in Nairobi, with the ultimate goal of turning a city with some of the continent’s largest banks into a financial hub in Africa.

The goal of the cooperation agreement is to support the concentration of international investment in Kenya and East Africa, with the potential for at least $ 2 billion worth of transactions over the next five years, according to people familiar with the matter. .. This allows Nairobi to: over time to: Compete with Dubai, As a conduit for regional trade.

The deal includes close collaboration between the London and Nairobi stock exchanges, as well as a move to facilitate the establishment and registration of businesses in East Africa’s economic powerhouse, Kenya.

British insurance company PrudentialGrowing rapidly in Africa, with 1.2 million customers in eight countries, it is the first non-African company to set up a regional headquarters in Nairobi under a new arrangement. Kenyan mining company Mayflower Gold has also announced plans to double-list its shares on both the London and Nairobi stock exchanges for a transaction worth £ 14 million.

The agreement, which begins Kenya’s President Uhuru Kenyatta’s three-day visit to the United Kingdom, could further strengthen economic relations between the two countries.March of this year, Kenya and the United Kingdom Ratify trade agreement Signed last December — one of the more than 12 deals closed during the Brexit transition — the UK said it would help boost £ 1.4 billion in mutual trade.

UK Foreign Minister Dominic Raab Welcome Kenyatta to the London Mansion House on Tuesday to announce a new British investment of £ 132m in Kenya. “This investment package creates new jobs and opens up new opportunities for companies in the UK and Kenya by strengthening the relationship between Nairobi and the city of London,” said Raab.

Nairobi’s advantages include political stability and good connectivity, stable exchange rates and a diverse pool of talent, and Vincent Lagu, a former senior adviser to the Kenyan Treasury and the next chair of the International Financial Center. Mr. says. “Obviously you need to have incentives, but I think you have to do more fundamentally [provide] “A broader ecosystem in terms of the regulatory environment for financial services.”

With Kenyan banks such as KCB and KCB Equity A UK official based in Africa, which is expanding globally, said: [it] It could be an international bank from anywhere you want to have your African headquarters in Nairobi. “

But for Kenya’s capital to become a hub, “it’s not without challenges,” said a local bank executive. World Bank Business Ease Ranking, Put off Kenya Mauritius And Rwanda. Nairobi is also ranked behind Dubai, second only to the latest Casablanca, Cape Town, Port Louis and Johannesburg in Africa. Global Financial Centers Index..

The deal between Kenya and the UK aims to turn Nairobi into an African financial hub

Source link The deal between Kenya and the UK aims to turn Nairobi into an African financial hub

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