Capital Raising in Kenya: The New Frontier

According to the World Bank, annual growth could reach between 18 and 20 % in more than 10 sub-Saharan countries by 2018. This equals billions of investment opportunities continent-wide.

Naturally, there will be wide variations by country and industry, but as a Kenyan, I would like, in this blogpost, to concentrate on Kenya.

Dubbed as one of Africa’s powerhouses, Kenya is regarded a regional hub for trade and finance, and many large corporations have their Africa headquarters in Nairobi.

Continued economic and political transformations are very much helping Kenya to maintain this status, as are advanced markets and high market adoption rates.

Technological advances are significant, and technology remains one of the country’s key investment areas. In addition, according to a recent World Economic Forum report, Nigeria and Kenya are leading the continent with SMEs and fundraising, with Kenya attracting more overall investment.

At NRBC, we match investors with interesting and viable investment opportunities, and at the same time we capital raise for small and medium businesses in Africa, looking for investment. We notice on an almost daily basis that Kenyan SMEs are under growing pressure to use technology in more sophisticated ways to meet the expectations of their customers and stay ahead of growing regulatory demands. Here we can help too. We believe therefore that we have the right finger on the right pulse and are extremely excited about the future.

Again according to the World Bank, the number of private equity firms is increasing very quickly across Africa. However, according to a recent McKinsey report, the true (and hidden) investment opportunities are in SMEs, a stance that I wholehearted agree with.

With Abraaj joining the USD 1bn Africa Funds, the economic news for the African continent is indeed very good. McKinsey’s message, as is mine, is that the time for investing in SMEs, in particular, is very much upon us.

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