Exploring Thailand's Outward FDI for Increased Investment in Kenya: Building Bridges and Collaboration

Exploring Thailand's Outward FDI for Increased Investment in Kenya: Building Bridges and Collaboration

Investment Promotion News / Thu, 06/29/2023 - 12:57

During the recent visit to Thailand, a delegation led by the Permanent Secretary (PS) had a productive meeting with the Board of Investment (BOI). It was observed that currently, the BOI is primarily focused on facilitating Outward Foreign Direct Investment (FDI) rather than Inward FDI.

However, in line with Kenya's objective of attracting foreign investment, the delegation explored opportunities to tap into Thailand's Outward FDI. Specifically, Kenya has set an inward FDI target of $10 billion, and efforts are underway to leverage Thailand's outward FDI.

Kenya Investment Authority (KenInvest) and the BOI are actively engaging in discussions and are in the process of signing a Memorandum of Understanding (MOU) on various areas of mutual interest. The aim of this collaboration is to increase FDI inflows into Kenya.

Thailand's outward FDI is primarily focused on the manufacturing, infrastructure, and hospitality sectors. During the visit, the delegation also had the opportunity to visit the Siam Cement Group (SCG), which is one of the largest building and construction companies in the world. SCG is currently strategizing its entry into the African market and exploring ways to leverage investments in Kenya's housing agenda.

Additionally, the delegation met with senior officials from the Thailand Industrial Standards Institute (TISI). The discussions centered around TISI's model of community product standards and certification, as well as their Small and Medium Enterprises (SME) certification system in addition to normal industrial standards. The delegation also reviewed the existing MOU between TISI and the Kenya Bureau of Standards (KEBS) and explored opportunities for collaboration in product testing through third-party labs and conformity agents.

Overall, the visit to Thailand was fruitful, with a focus on exploring avenues for increased FDI from Thailand to Kenya, particularly in the manufacturing, infrastructure, and hospitality sectors.