Kenya is deemed to be one of the more attractive emerging markets for early 5G deployment, and the government also has ambitious plans to create a so-called Silicon Savannah, which it hopes will generate 2% of GDP within a decade. There is, however, some room for improvement; Kenya’s labour laws are not always well-suited to serving start-ups, and there is a lack of start-up-specific policies around founding and funding.
2020 may see a change in the recent upwards trend of tech startup investment size.
Are fund managers in the country walking on thin ice?
With low savings rates and over 80% portfolio concentration in Treasuries and bank deposits, there is little left for businesses investment in the real economy.
Timely capital is needed from long term investors.
The ways to manage investment risk needs to expand to allow for a gestalt moment.
Check out this link by Alliance magazine : https://www.alliancemagazine.org/blog/a-call-for-timely-capital/
US invests in Mozambique’s LNG
Kimberly Reed of US Eximbank says “we have the capacity at any one time to support $135bn in transactions, and right now we are at about $50bn, so we have opportunity for growth and support”.
Reed goes on to point out that while the US Exim bank was closed, large LNG projects in Mozambique turned to Russian and Chinese financing; but when they re-opened, “they turned to us instead”.
The East Africa’s Community’s future plan focuses on the establishment of a single market in the financial services among its partner states, so as to enhance the availability of financial products and services to all.
According to Village Capital, 90% of the funding in East Africa’s VC market goes to foreign nationals. Access to funding networks is considered the largest challenge for local entrepreneurs and promising startups
The Africa Continental Free Trade Area (AfCFTA) is set to launch on 30th May. If every African country joins, it’s expected to be one of the world’s largest single markets, accounting for $4 trillion in spending and investment across the 54 countries.