Private equity funds inflows into East Africa reached over Ksh 100 Billion in the last 7 month of 2018.
Kenya is paving way in the sector accounting for Ksh 70 billion with Rwanda, Uganda and Tanzania taking the rest of the investments.
“Foreign investors are channeling their finds towards agri- business, health care and tech companies showing potential of scaling up disrupting traditional business models.” says Chartered Financial Analysts Society East Africa.
Alan Lwetabe says that the conducive political climate that was witnessed following the ‘handshake’ between President Uhuru Kenyatta and Raila Odinga has heightened interest from foreign investors and could translate into even bigger deals by the end of the year.
“Investors are keen on funding tech hubs that offer solutions for the future using mobile phone technologies and agribusiness with an eye for mitigating climate change. It’s high time for SMEs to engage in proper research before launching their products and innovate in order to attract new money.” He added.
Lwetabe further noted that issuers of the green bond need to ensure that the funds raised through the bond have positive impact on the community.
“it’s not enough to raise thousands of dollars using the green bond, the potential investors require proof that the funds will actually have measurable impact and proof of implementation especially on projects that are aimed at mitigating climate change.” he emphasized.
