NAIROBI - East African corporate bosses are more concerned about the impact of political instability on business prospects than the global economic downturn, a recent survey has shown.
They are also the most optimistic chief executives in the world about growth possibilities this year, with more than half predicting increased revenue in 2009.
In the poll of 187 chief executive officers (CEOs) and business heads from Kenya, Uganda, Tanzania and Rwanda, 30% cited politics as a long-term worry, versus 8% mentioning the world slump.
â€œThe political situation at the moment is even more precarious than at the end of last year,â€ Charles Muchene, who heads the Kenya office of PricewaterhouseCoopers which carried out the survey at the end of 2008, told Reuters.
â€œIt is a very real risk to the business environment.â€
Muchene was referring mainly to squabbling within the coalition government that rules Kenya, whose $35b economy is double the size of the regionâ€™s next biggest, Tanzania.
Uganda, Tanzania and Rwanda are perceived as more stable governments at the moment, although there are concerns about corruption, red tape and authoritarianism in those countries.
EA CEOs fear politics more than credit crunch