Mr Aliko Dangote (left), net worth: $13.8bn, owner, Dangote Group, net worth:$1bn, Mr Ratan Tata (centre), Chairman, Tata group, Mr. Mohamed Mansour (right), Executive, Mansour Group net worth: $2bn,
Posted Thursday, November 3 2011 at 23:08
Five of the world’s richest men have pumped billions of shillings into the Kenyan economy in the last five years, confirming Nairobi’s position as East Africa’s investment hub.
Nigeria’s Aliko Dangote, India’s Mukesh Ambani, Ratan Tata and the Sanghi brothers and Egypt’s Mansour brothers top the list of the world’s tycoons and rich families whose companies have recently put billions of shillings in new investments or expansion of established businesses.
Much of the investments in key sectors of the economy — including manufacturing, automotive, energy, property and mining — have been made in the past three years of global economic turbulence, confirming the billionaires’ faith in Kenya’s resilience.
Investment analysts said Kenya’s key attraction lies in the promise of a large and growing consumer goods market of 130 million people that has come out of East Africa’s integration project.
“These billionaires and their companies are moving into Africa’s frontier markets in search of growth opportunities and are seeing Kenya as a gateway to the continent’s consumer market,” said Sammy Onyango, the chief executive of advisory firm Deloitte East Africa.
Mr Onyango said Kenya’s growing middle class, a relatively skilled workforce and ongoing movement towards better governance under the new Constitution are key factors driving foreign investor confidence in the country.
Tata Group, chaired by Indian billionaire Ratan Tata, has lined up big ticket investments, targeting some of the most lucrative and capital-intensive segments of Kenya’s economy.
Mr Tata’s net worth is estimated at $1 billion (Sh100 billion) – a figure thought to be grossly understated by the fact that most of his wealth – about 65.8 per cent — is in the form of shares held in charitable trusts.
Mr Tata’s final months in office are expected to be marked by an aggressive investment in African frontier markets, including Kenya.
Pump billions
Tata operates locally as Tata Africa and is scouting for investment opportunities in pharmaceuticals, ICT, steel, construction, energy, tourism and mining where it is preparing to pump billions of shillings in the medium term.
“Tata Group has the financial capability to invest in a wide range of sectors so long as they present good business opportunities,” said Naresh Leekha, the executive director of Tata Africa.
The firm has in the past four years invested $100 million (Sh10 billion) to set up a second plant at Magadi Soda – the soda ash mining company it acquired in 2006.
It is also a major player in the motor vehicle market where it is competing in public transport, construction and commercial segments of the market with its Tata brand.
Early this year, Tata announced plans to either buy a stake in one of the local motor assembly plants or establish its own assembly for pick-ups and light commercial trucks at a cost of up to Sh2 billion.
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