Browsing: Doing business in africa

Kenya has huge potential for avocado production from both small scale and large scale farmers which makes it the world’s third largest producer of avocados. Avocado is also Kenya’s leading fruit export, accounting for nearly one-fifth of its total horticultural exports. 

In terms of export, Kenya ranked 8th globally (2.1% of market share) in 2019 in export of avocados shipping out 59,000 tons with annual value of Ksh10.6 Billion ($97.92 million), behind Mexico, Netherlands, Peru, Spain, Chile, Colombia and the United States. 

 

According to Brand Africa 100: Africa’s Best Brands 2020 survey, Africans prefer foreign brands over local ones. In 2011, the representation of African brands seemed very optimistic when they registered a 34% representation, but in 2020 it dropped to an all-time low of 13%. 

 

This is a worrying statistic as it may indicate that Africa is failing to meet the needs of its growing consumer market, which was worth $1.4 trillion in 2020. The AfCFTA if properly implemented will create an even bigger continental free trade zone with a potential market of 1.7 billion people. 

A mineral-rich continent, with a fast-growing economic potential and a considerable population stands a chance to become a predominant global hub for trade and investment. Africa’s growth potential has been mainly driven by a significant surge in investment, as indicated by the African Development Bank. As opposed to consumption expenditure driving economic growth, industry players and governments have realised the long-term benefits of investment to the growth of African economies. A longevity approach to a sustained growth of the African continent as a whole is the thrust of Agenda 2063 of the African Union, propelled by the African Continental Free Trade Area (AfCFTA) agreement.