{"id":1769,"date":"2016-11-24T12:55:20","date_gmt":"2016-11-24T11:55:20","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=1769"},"modified":"2016-11-24T12:55:24","modified_gmt":"2016-11-24T11:55:24","slug":"partnerships-for-growth","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2016\/11\/24\/partnerships-for-growth\/","title":{"rendered":"Partnerships for Growth"},"content":{"rendered":"

Last week, we welcomed at IESE<\/a>\u00a0a group of top executives from Kenya. They are participants in the Advanced Management Program (AMP) at Strathmore Business School<\/a>. A one-week module at IESE is part of this program. I had the opportunity to share with them two sessions about alliances and acquisitions as external growth options for a company. I was happy that later in the week the Ambassador of Kenya in Spain highlighted partnerships as one important way to move business forward. So, which are the opportunities for growth in Kenya?<\/p>\n

\"IESE<\/a>
The Embassador of Kenya in Spain during a networking event at IESE<\/figcaption><\/figure>\n

Kenya is one of the countries in sub-Saharan Africa (SSA) that is growing. Before going into the specifics of the country, let\u2019s take a look at the bigger picture of SSA.<\/p>\n

The International Monetary Fund (IMF)<\/a>\u00a0released recently their latest forecasts of GDP growth<\/a>. The forecast for the SSA region is 1.4% for 2016 (2 percentage points less than in 2015), and 2.9% for 2017 (still below the 2015 figure). As we all know, averages unmask diverse realities. The average for SSA is driven by the sharp slowdown in the largest SSA economies: Nigeria, South Africa, and Angola. However, other countries \u2013 including Kenya \u2013 are experiencing healthy growth rates. These are the figures:<\/p>\n

\"Forecasts<\/a>
*Note: Projection. Figures in %. Source: IMF World Economic Outlook (WEO)<\/a>, October 2016.<\/figcaption><\/figure>\n

Kenya shows good prospects. Private consumption grew at an average rate of 6.3% in the last 5 years, and investment at 14.1%. One of the AMP participants highlighted the growth of the manufacturing sector: it accounts for 10.3% of Kenya\u2019s GDP, and 12.7% of total GDP growth.* But again, we need to take a finer-grained look at the various sub-sectors:<\/p>\n

\"Kenya\"<\/a>
Source: Kenya National Bureau of Statistics<\/a><\/figcaption><\/figure>\n

Many opportunities for local and foreign to partner and seek growth for mutual and societal benefit, don\u2019t you think?<\/p>\n

* Data source: Kenya National Bureau of Statistics<\/a><\/p>\n

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