Nairobi among five cities to watch on tech, industry growth

Nairobi, Kenya, is poised to become a key player in Africa's technology and industrial growth, according to Oxford Economics' projections. The city's information technology sector is expected to grow by an average of 5.5 percent annually over the next 25 years, while finance is forecasted to increase by 4.1 percent. By 2050, Nairobi's industrial output could surpass US$38 billion (Sh4.9 trillion), with real growth averaging 4.4 percent annually.

This expansion could potentially create around 700,000 new industrial jobs, making Nairobi one of the top cities for industrial employment growth.

The city ranks 327th among 1,000 cities globally but stands out for its strong human capital, ranking 26th. While Nairobi remains Kenya's primary commercial and financial center, its technology sector is driving growth in fintech and other digital businesses. Oxford Economics also predicts that Nairobi's population will reach 12 million by 2050, increasing demand for housing, transport, infrastructure, consumer services, and investment.

However, this population growth could strain existing urban infrastructure and services, necessitating significant investment and institutional capacity to support sustained economic growth.

Nairobi is considered East Africa's commercial hub and a gateway to the broader East African Community market. Transport and logistics improvements are crucial for regional integration. Daniel Mainda, CEO of the Nairobi International Financial Centre (NIFC), emphasized the challenge of translating projected growth into investment and employment.

Mainda stated that the goal is to build Nairobi into Africa's Capital of Capital, a place where global capital converges with African opportunity and where funds are directed for business scaling and future financing. NIFC is working to develop investment structures in technology, artificial intelligence, financial services, climate finance, and infrastructure, collaborating with regulators and other institutions to turn potential into jobs and long-term prosperity.