Chinese investments fueling east Africa's economic growth: analyst

NAIROBI -- Chinese investments are fueling east Africa's economic growth, an analyst said on Jan 14.

Judd Murigi, head of research of ICEA LION Asset Management, told Xinhua in Nairobi that as economic growth in China slows down, Chinese investors are seeking new markets with high potential for growth.

"For the past five years, Chinese investments have been one of the major reasons why east African economies are performing better than other nations in sub-Saharan Africa," Murigi said during the release of the ICEA LION's Quarter one 2020 Economic Outlook.

He said that a lot of economic growth in the East African region has been driven by public infrastructure investments.

The analyst observed that the east African region has benefited from new roads, rail and energy facilities that have helped to make the economies competitive.

Murigi revealed that Chinese investors that have set up manufacturing plants in the region have boosted national productive capacity as well as created numerous employment opportunities for local people.

He added that in 2020 most countries in east Africa are expected to post an average growth rate of above six percent.

As Tanzania, Ethiopia, Somalia and Burundi are expected to hold elections in 2020. "How the elections are handled will determine the economic growth of East Africa," he said.