World Bank: Reforms could make Kenya manufacturing hub
08 October 2013, 12:23
Nairobi - The World Bank said Monday reforms being undertaken in Kenya could make the country the continent's manufacturing hub.
The bank's economist in Kenya, John Randa, said infrastructure projects as well as the streamlining of operations at the main port will reduce the cost of doing business in the country.
"We envisage that the government reforms will make Kenya a low cost producer of manufactured goods," Randa said at the release of the World Bank's twice yearly analysis on the issues shaping Africa's economic prospects.
According to the report dubbed Africa's Pulse, almost a third of sub-Saharan African countries are currently experiencing an annual economic growth of at least 6 percent.
He said the manufacturing contributes approximately 10 percent of the GDP in East Africa's biggest economy.
"Kenya is already a leading exporter of manufactured goods into the eastern African region," he said, noting that Kenya is in a good position to become the manufacturing hub given China's rising cost of production.
"The country could transform from being an importer of manufactured goods to a significant exporter," Randa said.
According to the World Bank, Kenya's economy could grow by 5.7 percent in 2013 and 6 percent in 2014.