East African countries witness growth in investor confidence

East African countries are witnessing significant growth in Chinese investments, primarily focused on infrastructure projects, manufacturing and consumer services which are boosting economic activity in the region.

Maina Kigundu, Stanbic Bank's head of corporate and investment banking in Kenya and South Sudan, said that backed by cordial bilateral ties, a rapidly diversifying economy, relative political stability and a fairly educated people, East African countries are attracting more Chinese investors in various sectors of the economy.

Kigundu, who was speaking at an economic forum held for Chinese investors in Kenya's capital Nairobi on Thursday, added that in the past few decades, the region has developed the right ingredients to make Chinese businesses increase their presence in the region.

"The fact that a Chinese business can set up a manufacturing firm in Kenya and be able to easily export the products to other East African countries and the rest of the continent through instruments such as the African Continental Free Trade Area has made the region appealing to Chinese investors and as a bank, we have seen a rise in both corporate and individual businesses seeking to set up shop in the region," Kigundu said.

Muya Guo, head of the China Desk at Stanbic Bank in Kenya, pointed out that this growth in Chinese investments has prompted them to offer Chinese businesses financial products tailormade for them including the introduction of trading facilities through the Chinese yuan to facilitate trade between Kenya and China.

"With the rise of trade between Kenya and China, we implemented measures to simplify business transactions for businesses involved in trade with China, including the availability of Chinese yuan at our branches," Muya said.

"Since we not only facilitate trade for Chinese businesses investing in Africa but also African business who export to China, trading through the Chinese yuan has reduced the need for financial intermediaries in foreign currency transactions, making it easier and potentially cheaper for businesses to conduct trade with China," she added.