The investors say Kenya and Africa, in general, have a myriad of glaring opportunities that need to be tapped.
Last December, the African Import and Export Bank (Afrexim Bank) said it wants to pump money into Kenyan firms in various sectors as the Pan-African lender eyes an increased role in the Kenyan economy.
Despite mounting concerns on political and business risks associated with the looming August 2022 general election and the Coronavirus crisis, global private equity firms are pumping billions into the Kenyan economy as they look to reap returns in the medium to long term.
The private equity (PE) firms — a class of investors keen on maximising profits — have stepped up their focus on Kenyan companies renewing hopes that Nairobi is back on the global radar as an investment hotspot.
An increasing number of PE firms are now competing to unlock billions of investment deals in Nairobi.
The investors say Kenya and Africa, in general, have a myriad of glaring opportunities that need to be tapped.
“Africa is the place to be for European development financiers. It is a continent where jobs and investments are very much needed, and at the same time, it is the new frontier where opportunities abound, and life is getting better for millions of people,” Finnfund chief executive officer Jaakko Kangasniemi explained recently while underlining why Finland’s sovereign wealth company Finnfund has chosen Nairobi as a launchpad for its regional operations.
“Some of our best and most impactful investments are in East Africa, and we intend to make many more such investments in the coming years.”
Mr Kangasniemi spoke when Finnfund opened a regional office in Nairobi seeking to expand its portfolio in the local market where it has already made several investments.
The fund usually invests between €200 million (Sh25.9 billion) to €250 million (Sh32.4 billion) in 20 to 30 companies throughout developing countries.
It targets profitable, privately owned businesses in areas such as renewable energy, sustainable forestry, sustainable agriculture, financial institutions as well as digital infrastructure solutions.The fund said it will deploy two to three investment professionals at the Nairobi office to scout for opportunities.Finnfund has invested billions of shillings in 17 companies operating in Kenya including Elgon Road Developments, Penda Health, Sanergy Inc, and Lake Turkana Wind Power.“The regional office will play a central role in strengthening our position in the East African market,” said Johanna Raehalme, the head of the Nairobi office.“The location supports and […]
