According to a new report released by Infomineo, Nairobi ranks as one of the leading destinations for Fortune 500 companies establishing international headquarters.
There are numerous factors which are observed in the organization’s selection of a specific city. These include the local market potential, maturity of the industry, existing competitors, political stability and the quality of the employment market, among others. Industry type also plays a pivotal role in the selection of city and country. Determining the attractiveness of a location along these clear lines assures the Fortune 500 companies of a stable and profitable investment and significantly mitigates risk, and Nairobi is among the cities that stand out.
The report focuses on multinationals looking at entering, or already present, in the Middle East and Africa region (MEA).
Overall, there was a 17% increase in the number of Fortune 500 companies in MEA in 2016 compared to 2015. By 2016, 196 Fortune 500 companies had established a dedicated regional headquarters in the MEA region. Nairobi is scoring as one of the leading regional destinations on the Fortune 500 list, among Dubai, Johannesburg, and Casablanca.
Nairobi is the leading destination for the FMCG companies and tends to be the top choice for organizations looking to service Eastern Africa. The city also is rapidly gaining traction and international awareness.