Kenya among high-risk markets delaying plans to attain SDGs by 2030
SURVEY: Kenya is among emerging markets holding back plans by the global community to meet the United Nation’s Sustainable Development Goals (SDGs) 2030 deadline, new research by Standard Chartered shows.
With the country currently facing a massive shortfall in foreign investment, The $50 Trillion Question survey conducted finds that this could pose a devastating blow to the looming deadline.
However, those already investing in Kenya and Africa are optimistic about the local market, with 93 per cent, saying they are likely to increase continental investment in future.
The survey flags risk posed by emerging markets as a major barrier to investment.
Developed markets
“More than two-thirds of investors believe emerging markets are high-risk, compared to 42 per cent who believe the same for developed markets,” reads in part the survey conducted in July and August.
It was conducted amongst a panel of the world’s top 300 investment firms with total assets under management of more than $50 trillion.
Sustainable Development Goals, also known as the Global Goals, were adopted by all United Nations member states in 2015 as a universal call to action to end poverty, protect the planet and ensure that everybody enjoys peace and prosperity by 2030.
That goal, according to the report released yesterday, is now remotely possible given that global investors are shying away from investing in markets like Kenya, with just two-thirds of their total assets under management invested in developed markets.
Other factors like the coronavirus pandemic, stiff regulations, lack of favourable tax treatment, absence of better data for measuring impact of tax returns, and the worrying flight of retail investors as the top five factors that are hindering investment flows into these markets and might not spur more SDG investment.
Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered said a significant surge in private-sector investment – alongside public investment and commitments – will be required to bridge the gap and hit the SDG targets over the next 10 years.
“Right now Covid-19 has made the imperative to act even stronger in the region,” he said while commenting on the investment gap among emerging markets.
Online Forex trading manager, Standard Investment Bank (SIB), however says that investments like stock prices and general financial well-being of the country will continue to climb if investors focus on the positives as the global economies bout to combat Covid-19 pandemic.
Investor confidence, according to SIB’s executive director corporate finance Job Kihumba, will play a critical role in rallying the markets.
