Nairobi Moves to Top 10 African Cities with High Growth Potential

Nairobi has emerged among the top 10 African cities that have the highest potential of growth which are expected to skyrocket in terms of development and growth in the next five years. This is according to a report released last week by the African Cities Growth Index (ACGI) by MasterCard. According to the report, Nairobi is 9th out of 49 cities that were included in the survey.

Since the promulgation of the new constitution and the taking effect of devolution into the country, Nairobi has been on the upward trend in terms of development especially in the financial sector. This has been attributed to the fact that many people own mobile phones, something that has helped them to have access to financial services such as banks.

The survey noted that there has been increased foreign direct investment into Nairobi and this has helped into the influx of investments from other countries. The growth has also been attributed to the improved living standards among most residents within the city as well as the sprouting of numerous business entities that have improved the economic status of Nairobi.

According to the report, Nairobi has recorded an index value of 41.3 this year of 2015 which an increase from the previous year which was 37.2 despite the harsh global economy. Last year, Nairobi was ranked number 19 in a similar survey but this year it has moved to number 9. The response of a city to the drivers of population, urbanization as well as the increasing number of the middle-class determines the upward movement of a city in terms of the development according to the report.

Nairobi comes to top ten even after the country has been struggling with wobbling economic times marred with heightened debt burden that was as a result of increased borrowing as well as inflation that had threatened the whole of Kenya. With the borrowing rates in banking sector coming down, there is hope that the city will develop even further.

The study also relied on the capital formation of the city, political stability, GDP per capita, the governance as well as the consumption per household in making its conclusions.