After Kenya hosted hundreds of the wealthiest and most successful investors from across the world in the Global Entrepreneurship Summit, Kenya's standing as a top investment destination fell third in East Africa after Tanzania and Rwanda.
The report which lists all 54 economies, ranks Kenya 11th falling from the top 10 bracket in 2014.
The report states that Kenya is certainly East Africa's gateway for foreign investment. There are plans to transform Nairobi into an international banking and financial hub in the next two decade, but authorities face a plethora of challenges including an inefficient legal system, graft, and the failure to put into practice a double taxation treaty with Uganda and Tanzania that hamper access to finance.
Kenya is hoping to transform itself into an investment destination as it competes with Africa's leading economies, South Africa and Nigeria.
The leading countries mentioned in the report are South Africa, Nigeria, Ghana, Morocco and Tunisia. The other top 10 in the list include Rwanda, Ethiopia, Algeria and Tanzania.
The report states Africa’s attractiveness reduced due to temporary reasons like religious intolerance, extremism, Ebola outbreak and political intolerance although some countries needed better economic policies.
Ethiopia and Rwanda may soon dethrone Kenya as East Africa's economic powerhouse. The report explained that Rwanda is a tiny country, but its reform efforts have been so outstanding that it is reaping rapid rates of economic growth and associated improvements in the business environment. Ethiopia's position comes about because of rapid growth and its large population.
Kenya is set to host the 10th ministerial conference of The World Trade Organization on December 15 to18 2015 after winning the bid to host the high profile summit.
