Tanzania Overtakes Kenya as Best Investment Destination in East Africa

Tanzania has overtaken Kenya as the best investment destination for investors who are scouting for opportunities in the East African region, according to a new survey by KPMG.

According to KPMG, 15 per cent of top executives in the region stated they would invest in Tanzania compared to 14 per cent who preferred Kenya.

Kenya is the largest economy in the East African region. 

The continent’s economic powerhouses; South Africa and Nigeria however dwarfed the East Africans with 50 per cent and 30 per cent of respondents picking the two countries respectively.

An aerial view of Nairobi City’s skyline in 2023.


Eyeconic Media

South Africa is projected to overtake Nigeria in 2024 to regain its position as Africa’s largest economy.

Ghana, which has suffered economic turmoil in the past year, tied with Kenya in the survey at position four.

The survey found that fintech, oil and gas, consumer products, and mining will drive most investments in the next two years.

The study asked business executives with experience in making deals to list countries they are considering an acquisition or investment in Sub-Saharan Africa over the next two years.

“In H2-2022, 150 C-suite-level and other senior executives were surveyed based on their experience in dealmaking in Sub-Saharan Africa (SSA) over the last four years,” KPMG stated in their report.

The survey featured both local and foreign investors.

“The respondent group was divided equally between domestic investors (i.e., based in SSA) and international investors (i.e., based outside of SSA),” the report noted.

“Among the domestic investors, 71 per cent were strategic investors and 29 per cent were financial investors. Among international investors, 69 per cent were strategic and 31per cent were financial investors.” 

President William Ruto arriving in Tanzania for an official visit on October 22, 2022.


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