Writing Assignment 6

writing_assignment_4.pptm

Possible Investment in Kenya

Emmy Bowe P. University EN306

Introduction

Mahindra and Mahindra are considering to invest in an African country, specifically Kenya

25 employees are being considered to be transferred to Kenya in the new subsidiary as expatriates

Kenya has the fastest growing economy in Africa and the third in the world, according to Bloomberg

Kenya is an oasis of opportunity and a destination for investors.

This presentation highlights the reasons why M&M’S choice of Kenya as an investment destination will be a wise strategic move

1. Tax treaties and a preferential market access

Kenya offers potential investors with a diverse market accessibility

These markets are affiliated to the country due to membership in regional and global trading bodies

EAC, COMESA, AU and WTO are such markets, an opportunity for M&M expansion and growth

Exports from Kenya have privileged access, duty reduction and are free from quota restrictions in relation to world markets

This is due to signatory protection agreements from Multilateral Trade System (MTS) and ACP Cotonou

2. Strategic Location

Kenya is located at the East African Coast

Potential Investors can access the East and Central African market with over 385 million potential consumers

The port at Mombasa provides shipping requirements to over a dozen countries

Airports at the country also provide international connectivity to Asia, Europe and other African parts

3. Regulatory reforms

Kenya has made reforms aimed at reducing costs of starting up and running business in the country, an incentive to foreign investors

This reforms have simplified and minimized the number of licensing requirements

The foreign investment act in Kenya will guarantee the protection of our employees and the company’s property by the government

4.Highly skilled labor force

Kenya revels in a large pool of highly educated, qualified and skilled multilingual workforce

The labor force is essential to the Mahindra and Mahindra’s strategic growth

The labor costs are also effective since the minimum wage rate is low

5. Political Stability

The success of our company will be anchored on the political stability of the country of operation

Kenya is a peaceful country, and now under less threat from terrorism

Kenya is the best fit African country for oil and gas investment compared to other oil countries such as Nigeria, which are facing civil war

Conclusion

Kenya’s economy is best for oil and gas exploration based on our research

The oil reserves and deposits in the country are yet to be tapped, and our company’s return on investments will be immense in a few years to come

Kenya has the least trade barriers for investor companies seeking to capitalize in the oil and gas industry, which is still at its initial stages

References

BBC News. (2016). Kenya Country Profile. Retrieved from: http://www.bbc.com/news/world-africa-13681341

Lillian, O. (2016). British company strikes oil in Kerio Valley basin. Daily Nation. Retrieved from: http://www.nation.co.ke/news/Tullow-finds-oil-deposits-in-Kerio-area/1056-3120332-flefltz/index.html

The World Bank. (2016). Kenyan Profile. Retrieved from: http://www.worldbank.org/en/country/kenya/overview