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INTRODUCTION
The expansion of small and medium-sized enterprises (SMEs) beyond domestic borders has become
a critical strategy for growth, competitiveness, and long-term sustainability in an increasingly
globalised economy. Within the African context, regional integration, trade liberalisation, and
digital transformation have created new opportunities for South African automotive SMEs to
explore high-potential markets such as Kenya. As one of East Africa’s fastest-growing economies
and a regional hub for innovation and logistics, Kenya presents a strategic entry point for firms
seeking to leverage cross-border trade and digital platforms.
This study examines the strategic expansion of a South African automotive SME into Kenya, with a
particular focus on resource acquisition, cross-border service delivery, and the adoption of digital
business models. It explores how firms can effectively mobilise financial, human, and technological
resources, while navigating regulatory and infrastructural challenges. Furthermore, the study
highlights the role of the African digital economy in enabling scalable, efficient, and customer-
centric business operations across borders.
CHOOSING THE AFRICAN HOST COUNTRY (KENYA)
Economic Growth and Market Potential
Kenya is widely regarded as one of the most attractive investment destinations in East Africa due to
its consistent economic growth and expanding consumer base. The country has experienced stable
GDP growth, supported by sectors such as manufacturing, transport, and financial services (World
Bank, 2023). For a South African automotive SME, this creates a favourable environment
characterised by increasing demand for vehicles, spare parts, and maintenance services. Rapid
urbanisation, particularly in Nairobi and Mombasa, has intensified the need for efficient mobility
solutions, further driving growth in the automotive sector (United Nations, 2022). Consequently,
Kenya offers a high-potential market for expansion, especially in the aftermarket and service
segments.
Strategic Geographic Location
INTRODUCTION
The expansion of small and medium-sized enterprises (SMEs) beyond domestic borders has become
a critical strategy for growth, competitiveness, and long-term sustainability in an increasingly
globalised economy. Within the African context, regional integration, trade liberalisation, and
digital transformation have created new opportunities for South African automotive SMEs to
explore high-potential markets such as Kenya. As one of East Africa’s fastest-growing economies
and a regional hub for innovation and logistics, Kenya presents a strategic entry point for firms
seeking to leverage cross-border trade and digital platforms.
This study examines the strategic expansion of a South African automotive SME into Kenya, with a
particular focus on resource acquisition, cross-border service delivery, and the adoption of digital
business models. It explores how firms can effectively mobilise financial, human, and technological
resources, while navigating regulatory and infrastructural challenges. Furthermore, the study
highlights the role of the African digital economy in enabling scalable, efficient, and customer-
centric business operations across borders.
CHOOSING THE AFRICAN HOST COUNTRY (KENYA)
Economic Growth and Market Potential
Kenya is widely regarded as one of the most attractive investment destinations in East Africa due to
its consistent economic growth and expanding consumer base. The country has experienced stable
GDP growth, supported by sectors such as manufacturing, transport, and financial services (World
Bank, 2023). For a South African automotive SME, this creates a favourable environment
characterised by increasing demand for vehicles, spare parts, and maintenance services. Rapid
urbanisation, particularly in Nairobi and Mombasa, has intensified the need for efficient mobility
solutions, further driving growth in the automotive sector (United Nations, 2022). Consequently,
Kenya offers a high-potential market for expansion, especially in the aftermarket and service
segments.
Strategic Geographic Location
