Partly for scoring low in liveability and governance indices, EIU
cautions that Nairobi and other growing African cities may fail to
overtake the old political powerhouses of Europe and the economic giants
that have over the past three decades sprouted in Asia. In this survey,
Nairobi is ranked 115 out of 120 cities for overall competitiveness
Jane Weru, a lawyer who litigates on behalf of the urban poor,
describes Nairobi as one would an especially confident young woman.
“Nairobi is edgy,” she begins. “It’s a bit brash. It’s not shy. It’s young and it is a city on the go.”
If Nairobi is a young woman, then she is coming of
age... and the suitors have noticed, because the narrative of the
city’s transformative growth is one that currently permeates briefs
circulated by investment analysts.
It is a narrative that is woven into the
strategies of multinationals expanding into new markets, and one that
carefully laces the speeches of C-suite executives trooping to Kenya to
woo the government and its people.
However, Nairobi does have a dark side. It is a
city of stark inequalities with serious infrastructural challenges that
may yet stall its rise to the top.
“Nairobi is also a paradox,” says Ms Weru. “Abject
poverty co-exists with near First World luxury. The city’s expansion
may just push these extremes farther apart.”
The importance of Nairobi to the national and regional economy and its failings are by no means unique phenomena.
Financial services firm Citi last year
commissioned the Economist Intelligence Unit (EIU) to carry out a survey
of 120 cities globally, assessing their competitiveness as investment
destinations.
The resultant report noted that middle-tier cities
in emerging markets — once considered too risky — may now steal the
show from European cities that are stuck in economic doldrums and facing
the challenge of infrastructure fatigue.
“Already, global business is beginning to plan strategy from a city, rather than a country, perspective,” EIU said.
In China, for instance, megacities such as Beijing, Guangzhou, and Shanghai compete with each other for investors.
In this new economic order, where the city rises
in status above the country, African, Asian, and Latin American cities
are leap-frogging the smog and coal industrialisation of the old world
to carve themselves new niches.
They are choosing to invest billions to excel in
narrow fields such as financial services, technology, or business
process outsourcing (BPO).
Over the past two months, Microsoft, IBM, and
Google top brass have made their way to Nairobi. In public forums and
university lectures, they extolled the virtues of the city, justifying
their need to suddenly turn to Kenya for profits.
“Nairobi has emerged as a serious tech hub and may
become Africa’s leader,” noted Google chairman Eric Schimdt in a blog
post following his visit.
One of the factors behind the city’s rise is basic
geography. In 1890s, when Nairobi was set up as a railway depot, its
central location was a major selling point. This advantage has not waned
over time.
Within the regional context, Nairobi is prime real
estate. It is connected to a coastal harbour and is within a four-hour
flying distance of most African destinations.
Technology has been adopted wholeheartedly,
increasing efficiency in communication. For any multinational looking to
extend its tentacles across the continent, the city is a entry point.
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