Results from the Autumn 2019 World Business Outlook Survey shows that German companies are less optimistic about Kenya’s growth prospects.
According to the survey, German companies business expectations in the next twelve months dropped from 71 per cent to 62 per cent in the last six months.
Furthermore, firms expecting an expansion of their employee base have fallen from 45 per cent to 38 per cent. However, 48 per cent of respondents expect to retain their current employee quota.
READ ALSO: Ethiopia Receives $388 Million Grant from Germany for Reforms
Nonetheless, the German business community expects increased bilateral trade relations creating employment.
Delegation of German Industry and Commerce for Eastern Africa (AHK Eastern Africa) promotes bilateral trade and shared expertise between German and Kenyan companies.
Some of the pressing risks to economic growth include declining demand for products and services (47% up from 41%), shortage of skilled labour (38.1% up from 25%) and lack of access to financing (38.1% up from 16%).
Thomas Wimmer, Head of Economic Affairs at the German Embassy, says the survey is proof of German companies desire to remain active and scale operations in Kenya.
Related
German Development Bank Partners with Allianz Global to Offer $188 Million for African Ventures
