On June 10, 2021, Finance minister Mwigulu Nchemba unveiled the 2021/22 Union government budget. The budget is to the tunes of Sh36.4 trillion, with about 63 percent dedicated to recurrent expenditure and 37 percent to development expenditure.
Among the key focus areas in the budget is improvement of the business environment and investment climate. This is crucial for a competitive economy which is one of the sub-themes of the budget derived from the Third Phase of the Five-Year Development Plan (FYDP-III).
This piece highlights some business environment and investment climate issues for economic competitiveness.
Business and investment climate
Business environment and investment climate include aseveralvariables that affect businesses and investments positively or negatively, depending on their status. Businesses and investments of all kinds and sizes need friendly, attractive and conducive environment and climate at all stages. The climate and environment are very important for not only attracting but also retaining investments and business in virtually all sectors of the economy. They are important in giving captains and titans of the industry the confidence needed to commit their normally colossal, long-term, borrowed and risky capital. In what follows some business environment and investment climate variables that are important for countries' competitiveness are outlined.