Kenya has been ranked six places better than last year in a new report measuring the connectedness of countries to international flows of trade, capital, and information.
The country rose from position 104 in 2010 to 98 last year, out of 140, in the Global Connectedness Index (GCI) released on Monday by global logistics firm DHL.
The index is significant as it helps to show the competitiveness of countries in attracting capital investment inflows.
“Among the more noteworthy aspects of Kenya’s connectedness profile are the high depth of its inward FDI stock (56th out of 132 countries) and the proportion of its tertiary students studying abroad,” said DHL managing director for Equatorial Express Africa Alan Cassels.
Kenya also ranked fourth worldwide on the number of international inbound telephone calls which increased by 12 per cent in the year ended June 2012 to 678 million minutes, while outgoing calls rose 26 per cent to 641 million minutes.
Kenya is ranked 37 among 130 countries with the highest number of their students studying abroad.
Trade agreements with partners under the Common Market for Eastern and Southern Africa and the East Africa Community have also increased the ease of doing business by relaxing barriers and excess taxes.
“If we want to improve this interconnectivity, we need to look at the ease of doing business across borders in the region and work towards regional trade agreements, customs improvements and border efficiencies, to name just a few,” said Mr Cassels.
Kenya, East Africa’s largest economy, lost its grip on reforming the business environment to finish at number 121 from position 109 last year out of the 185 countries surveyed for the World Bank’s 2012 Doing Business report. Five of the countries with the largest increase in their connectedness scores — Mozambique, Togo, Ghana, Guinea, and Zambia — are from Africa.
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Kenya has an installed broadband internet connectivity giving it quick access to information and communication and hence boosting e-commerce.
The index was compiled based on indicators such as trade flows, merchandise and services, capital flows in terms of foreign direct investments, portfolio equity stocks, information flows measured in terms of telephone calls, and internet speeds.
It was also based on the ease of movement of people, measured by migration and tourism numbers.
Sub Saharan African countries are the least connected due to poor trade ties between themselves. Kenya’s top export destinations are Uganda, the UK, Tanzania, the Netherlands, USA, UAE, Sudan, Egypt, Pakistan, and Somalia.
“We are confident that, with increased investment in Africa and sustained commitment from governments, we will continue to improve these scores year on year,” said Mr Cassesls.
Source :businessdailyafrica.com
