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The capital markets in Kenya have witnessed many years of sustained and rapid growth. This performance, phrased as one investor as “Africa in fifth gear”, reflects the broader macroeconomic fundamentals of the country’s economy, which is set to strengthen further in 2017 as a result of ongoing government spending on infrastructure and the recovery in tourism. However, short-term hurdles have dampened enthusiasm, such as the global uncertainty resulting from Brexit and the unexpected outcome of the US presidential elections in 2016, and domestic concerns over the national elections in August 2017. Still, while investors at the Nairobi Securities Exchange (NSE) may have been holding back investments to take account of short-term moves, excitement in Kenya’s long-term growth trend has not dimmed, as demonstrated by the ongoing activity in private equity and mergers and acquisitions. Despite the market’s relative sophistication, new initiatives are likely to require years of support by NSE and other market participants before they achieve a meaningful level of liquidity, particularly when spot equities and bonds are slowing down. This chapter contains an interview with Paul Muthaura, CEO, Capital Markets Authority; and Geoffrey Gangla, CEO, Genghis Capital.

Kenya’s banking sector benefits from healthy fundamentals, which in turn has ensured steady growth in lending and assets, and strong performances for listed creditors. However, 2016 provided the sector with its fair share of challenges to navigate. Nevertheless, the outlook for the country’s lenders is positive. A key driver of growth among Kenyan banks remains their ability to tailor products that meet Kenyans’ needs, which has helped the country attain one of the highest financial inclusion rates in the developing world, at 75%. Sector challenges may have slowed growth temporarily, but the underlying fundamentals for Kenyan banks look strong and stable for the medium term. The country’s banks are fast-growing, responsive, innovative and increasingly well-regulated. This chapter contains interview with Patrick Njoroge, Governor, Central Bank of Kenya; Lamin Manjang, Managing Director and CEO, Standard Chartered Bank Kenya; Joyce-Ann Wainaina, CEO, Citibank; and Jeremy Awori, Managing Director, Barclays Bank Kenya.

Kenya was the sub-Saharan Africa’s fifth-largest economy in 2015 behind Nigeria, South Africa, Angola and Sudan, ranked 11th in inward foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues. This performance is not necessarily surprising given the country’s comparative advantages. The East African market has one of the highest financial inclusion rates in the developing world, and a strong and diversified private sector. Kenya is also seen as a safe haven for assets in the region, with significant inflows from countries such as Somalia and South Sudan a contributing factor to the country’s overall balance sheet. The highlight of 2017 will be the general elections, with hopes for a result that is clear and accepted, and a peaceful transition of power if the incumbent loses. Kenya’s fundamental economic performance continues to be strong, with GDP growth expected to grow by 6%. Key sectors such as tourism continue to rebound, however, important structural reforms are still needed to ensure sustained growth. This chapter contains interviews with Carole Kariuki, CEO, Kenya Private Sector Alliance; Moses Ikiara, Managing Director, Kenya Investment Authority; and Akinwumi Adesina, President, African Development Bank.

But in only two decades, Argentina has returned as a new focus of investors and companies around the world. The newly elected government of President Mauricio Macri is working to recover the interest of American and European companies, which have announced levels of investment that were unthinkable a few years ago. Domestically, the country is drafting a series of reforms that will help improve macroeconomic fundamentals and ensure healthy levels of consumption, setting the stage for Argentina to again become a southern superpower.

This chapter offers an overview of Vietnam’s legal framework, focusing on legislation passed to improve the business environment, the Law on Enterprises, the New Civil Code and other important areas. It also contains an interview with Tuan Phuong, Managing Partner, VCI-Legal.