Kenya unrest hits SA investment

By Kimberly Guest for KPMG
Johannesburg, 13 Mar 2008

Recent unrest in Kenya is impacting international telco investment in SA, says Sean Collins, KPMG's global chairman of communications and media.

"When looking at this country, there are a couple of large questions that need to be answered. Companies looking to invest here are well aware of the political uncertainty in the region and the power outages. Also, the unrest in Kenya has shown how quickly environments can deteriorate," he says.

Despite these question marks, Collins says there is much interest in SA and the African continent.

"We consult to some of the largest telecoms players on the international stage. Those companies, which have soared in Northern America and Western Europe, have to consider where their growth is going to come from as these markets are mostly saturated," he explains.

As a result, emerging market strategies are becoming increasingly important for large telcos. Africa is considered to be a region with significant opportunities available, says Collins.

"Yes, this region provides some concerns for investors. But more and more I am hearing Africa being referred to as a 'growth' continent rather than an 'emerging' continent.

"I understand that some people on the continent may think Africa is a missed opportunity. But, if you look at it from an investor point of view, Africa is a fantastic opportunity waiting to be seized," he explains.