FACTORS INFLUENCING STRATEGIES EMPLOYED BY SWEDISH TRADE COUNCIL IN PROMOTING FOREIGN DIRECT INVESTMENTS IN KENYA

This project examines the factors that influence strategies employed by Swedish Trade Council in promoting foreign direct investments in Kenya. Factors such as political and macroeconomic instability, low growth, weak infrastructure, poor governance, inhospitable regulatory environments, and ill-conceived investment promotion strategies, are identified as responsible for the poor FDI in Kenya. Developing countries actively promote FDI as it is generally recognized that FDI can make a significant contribution to economic development through the transfer of capital, technology and skills although such transfers are not automatic. However, as developing countries adopt a host of policies and strategies, including expensive incentives, to lure FDI, the success rate offers a mixed picture and is sometimes outright disappointing. In the final analysis, FDI will flow where business opportunities are the greatest and obstacles to business the smallest. While active investment promotion has proved to make a difference in Kenya, a comprehensive and consistent market-friendly development strategy adopted and implemented by a pro-active government which facilitates rather than obstructs business and is private sector oriented, promotes regional cooperation and embraces the global economy is the best guarantee that investors will find the country increasingly attractive for their investments.
The paper stresses the need for more trade and investment relations between Sweden and Kenya. It also argues Kenya should pay more attention to the improvement of relations with existing investors and offer them incentives to assist in marketing domestic investment opportunities to potential foreign investors. Consequently, concerted efforts are needed at the national, regional, and international levels in order to attract significant investment flows to Kenya and improve the prospects for sustained growth and development

 

http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/12261

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