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The Comparative Evaluation:
Kenya and Liberia
pet markets and manufacturing investment
analysis report



                 Rui (Ray) Xue

                  07/26/2012
The Overview of the Report
ļ¶Kenya would be the best choice to pet markets and
 manufacturing.
ļ¶The Basic Factors (Religion, Language, Infrastructure )
ļ¶Economy (GDP, Income, Inflation, Exchange Rate)
ļ¶Business Conditions(Labor, Policy, Pet Markets)
       Kenya                               Liberia




                                                 (Pictures From: CIA Factbook)
THE BASIC FACTORS
ļ¶Language: English is official language in both of Kenya and
 Liberia (Kenya, 2012ļ¼›Liberia, 2012).
ļ¶Religion: The largest majority religion of Kenyans and Liberia
 are Christian(Kenya, 2012ļ¼›Liberia, 2012).
ļ¶Water System: Over half of Kenyans need to get water from
 surface water (Briceno-Garmendia&Shkaratan , 2011, p.12). Liberia's water supply
 systems were completely demolished during 14 years of civil
 war, (Foster&Pushak, 2012).
ļ¶Electricity Supply: About 25% of population can use electricity
 in Kenya (The World Bank Group, 2012). Liberia's power generating capacity
 and national grid were completely demolished during the civil
 war(Foster & Pushak, 2011, p1).
THE BASIC FACTORS
ļ¶Transportation: There are 11,197 kilometers roads are paved, more
 than 194 airports and airfields, 15 of which have paved runways in
 Kenya(Kenya, 2012). Liberia has a very serious problem in transportation
 system, which is no ports get the ISPS certification in Liberia since
 the big port security problem (Foster & Pushak, 2011, p.12).




                                                                     (From
                                                                   filecluster)
ECONOMY
ļ¶GDP: The GDP (PPP) of Kenya is about $72.34 billion in 2011,
 the GDP of Kenya is ranked 83th in country comparison to the
 world (Kenya, 2012). To Liberia, the GDP(PPP) is $1.792 billion in 2011
  (Liberia, 2012).




ļ¶Income: The GDP per capita (PPP) of Kenya was $1,800 in
 2011 ( Kenya.2012). The GDP per capita (PPP) of Liberia was $500 in
 2011, more than 80% of the population lives below the
 poverty line (Liberia, 2012).
ECONOMY
ļ¶According to the below chart, the overall trend of the GPD per
 capita (PPP) of Kenya increases.




                                                   (From the World Bank)
ECONOMY
ļ¶Inflation: The inflation rate of Kenya was about 4% in 2010,
 and 11% in 2011 (Kenya, 2012). The inflation rate of Liberia was about
 7.3% in 2010, and 10% in 2011 (Liberia, 2012).
ļ¶Exchange Rate: With the Kenya`s economic system will be
 more and more perfect led to a more stable exchange rate
 than Liberia`s.




ļ¶                                                             (ihmsisters.org)
BUSINESS CONDITIONS
ļ¶Labor: The number of Kenyan labor force was about 18.39
 million workers in 2011, the official unemployment rates of
 Kenya were 40% in 2001 and 2008 (Kenya, 2012). In Liberia, The
 number of Liberia`s labor force was about 1.372 million
 workers in 2007(LIberia, 2012).
ļ¶Foreign Investment Policy: In Kenya, FIP is good, foreign
 investors have been guaranteed ownership and the right to
 remit dividends, royalties, and capital, although there are
 some restrictions, but between 60 and 70 percent of industry
 is still owned from abroad(Library of Congress, 2007, p.14).




                                                        (hunton.com)
BUSINESS CONDITIONS
ļ¶Pet Market: Kenya has a small but growing pet food market.
 Kenya's pet food imports grew at an annual average rate of 27
 percent in the last five years since the increased pet
 ownership and demand for quality food(USDA, 2011).




                                                  (USDA, 2011)
CONCLUSION
ļ¶Kenya would be the best choice to pet markets and
 manufacturing.
ļ¶the better infrastructure
ļ¶the huge economic potential
ļ¶the good business policies
ļ¶the increasing pets and pet`s supplies demand
ļ¶Kenya would maximize profits for our company.




                                                (free-press-release.com)
THANK YOU




ā€¢               (From: moonshadowkennel.com)
References
ā€¢   BriceƱo-Garmendia ,C. M. & Shkaratan, M. (2011, March). Kenya's infrastructure: A continental perspective. Retrieved from
    https://openknowledge.worldbank.org/bitstream/handle/10986/3361/WPS5596.pdf?sequence=1

ā€¢   Foster, V. & Pushak, N. (2011, March). Liberiaā€™s infrastructure: A continental perspective. *pdf+. Retrieved from
    http://elibrary.worldbank.org/docserver/download/5597.pdf?expires=1343415280&id=id&accname=guest&checksum=DEF
    A485D82C5B4113766F5CE74319BD0

ā€¢   Kenya. (2012). In CIA World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world-
    factbook/geos/ke.html

ā€¢   Liberia. (2012). In CIA World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world-
    factbook/geos/li.html

ā€¢   Library of Congress - Federal Research Division. (2007, June). Country profile: Kenya. [pdf]. Retrieved from
    http://lcweb2.loc.gov/frd/cs/profiles/Kenya.pdf

ā€¢  USDA Foreign Agricultural Service. (2011, August 8). Kenyan pet food market. [GAIN Report]. Retrieved from Globaltrade.net
   http://www.globaltrade.net/f/market-research/pdf/Kenya/Processing-of-Food-and-Agricultural-Products-Pet-Food-
Market.html

ā€¢   World Bank Group. (2012, April 10). Kenya's power shortage problem meets innovative finance. Frontier Market
    Intelligence - TradeInvest Kenya. Retrieved from http://www.tradeinvestkenya.com/feature_articles/1225845.htm

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  • 1. The Comparative Evaluation: Kenya and Liberia pet markets and manufacturing investment analysis report Rui (Ray) Xue 07/26/2012
  • 2. The Overview of the Report ļ¶Kenya would be the best choice to pet markets and manufacturing. ļ¶The Basic Factors (Religion, Language, Infrastructure ) ļ¶Economy (GDP, Income, Inflation, Exchange Rate) ļ¶Business Conditions(Labor, Policy, Pet Markets) Kenya Liberia (Pictures From: CIA Factbook)
  • 3. THE BASIC FACTORS ļ¶Language: English is official language in both of Kenya and Liberia (Kenya, 2012ļ¼›Liberia, 2012). ļ¶Religion: The largest majority religion of Kenyans and Liberia are Christian(Kenya, 2012ļ¼›Liberia, 2012). ļ¶Water System: Over half of Kenyans need to get water from surface water (Briceno-Garmendia&Shkaratan , 2011, p.12). Liberia's water supply systems were completely demolished during 14 years of civil war, (Foster&Pushak, 2012). ļ¶Electricity Supply: About 25% of population can use electricity in Kenya (The World Bank Group, 2012). Liberia's power generating capacity and national grid were completely demolished during the civil war(Foster & Pushak, 2011, p1).
  • 4. THE BASIC FACTORS ļ¶Transportation: There are 11,197 kilometers roads are paved, more than 194 airports and airfields, 15 of which have paved runways in Kenya(Kenya, 2012). Liberia has a very serious problem in transportation system, which is no ports get the ISPS certification in Liberia since the big port security problem (Foster & Pushak, 2011, p.12). (From filecluster)
  • 5. ECONOMY ļ¶GDP: The GDP (PPP) of Kenya is about $72.34 billion in 2011, the GDP of Kenya is ranked 83th in country comparison to the world (Kenya, 2012). To Liberia, the GDP(PPP) is $1.792 billion in 2011 (Liberia, 2012). ļ¶Income: The GDP per capita (PPP) of Kenya was $1,800 in 2011 ( Kenya.2012). The GDP per capita (PPP) of Liberia was $500 in 2011, more than 80% of the population lives below the poverty line (Liberia, 2012).
  • 6. ECONOMY ļ¶According to the below chart, the overall trend of the GPD per capita (PPP) of Kenya increases. (From the World Bank)
  • 7. ECONOMY ļ¶Inflation: The inflation rate of Kenya was about 4% in 2010, and 11% in 2011 (Kenya, 2012). The inflation rate of Liberia was about 7.3% in 2010, and 10% in 2011 (Liberia, 2012). ļ¶Exchange Rate: With the Kenya`s economic system will be more and more perfect led to a more stable exchange rate than Liberia`s. ļ¶ (ihmsisters.org)
  • 8. BUSINESS CONDITIONS ļ¶Labor: The number of Kenyan labor force was about 18.39 million workers in 2011, the official unemployment rates of Kenya were 40% in 2001 and 2008 (Kenya, 2012). In Liberia, The number of Liberia`s labor force was about 1.372 million workers in 2007(LIberia, 2012). ļ¶Foreign Investment Policy: In Kenya, FIP is good, foreign investors have been guaranteed ownership and the right to remit dividends, royalties, and capital, although there are some restrictions, but between 60 and 70 percent of industry is still owned from abroad(Library of Congress, 2007, p.14). (hunton.com)
  • 9. BUSINESS CONDITIONS ļ¶Pet Market: Kenya has a small but growing pet food market. Kenya's pet food imports grew at an annual average rate of 27 percent in the last five years since the increased pet ownership and demand for quality food(USDA, 2011). (USDA, 2011)
  • 10. CONCLUSION ļ¶Kenya would be the best choice to pet markets and manufacturing. ļ¶the better infrastructure ļ¶the huge economic potential ļ¶the good business policies ļ¶the increasing pets and pet`s supplies demand ļ¶Kenya would maximize profits for our company. (free-press-release.com)
  • 11. THANK YOU ā€¢ (From: moonshadowkennel.com)
  • 12. References ā€¢ BriceƱo-Garmendia ,C. M. & Shkaratan, M. (2011, March). Kenya's infrastructure: A continental perspective. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3361/WPS5596.pdf?sequence=1 ā€¢ Foster, V. & Pushak, N. (2011, March). Liberiaā€™s infrastructure: A continental perspective. *pdf+. Retrieved from http://elibrary.worldbank.org/docserver/download/5597.pdf?expires=1343415280&id=id&accname=guest&checksum=DEF A485D82C5B4113766F5CE74319BD0 ā€¢ Kenya. (2012). In CIA World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world- factbook/geos/ke.html ā€¢ Liberia. (2012). In CIA World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world- factbook/geos/li.html ā€¢ Library of Congress - Federal Research Division. (2007, June). Country profile: Kenya. [pdf]. Retrieved from http://lcweb2.loc.gov/frd/cs/profiles/Kenya.pdf ā€¢ USDA Foreign Agricultural Service. (2011, August 8). Kenyan pet food market. [GAIN Report]. Retrieved from Globaltrade.net http://www.globaltrade.net/f/market-research/pdf/Kenya/Processing-of-Food-and-Agricultural-Products-Pet-Food- Market.html ā€¢ World Bank Group. (2012, April 10). Kenya's power shortage problem meets innovative finance. Frontier Market Intelligence - TradeInvest Kenya. Retrieved from http://www.tradeinvestkenya.com/feature_articles/1225845.htm