Kafrican
JF-Expert Member
- Jan 26, 2015
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There is FDI which is overal and then their is Private equity-Which is about buying stakes and shares into different private companies, or investing in startups.. companies involevd in this kind of investments are usually Finance, Law firms, Manufacturing, medicine, tech, agribusiness, ..etc
Out of $1B worth in private equities in EAC in the first 7 months of 2018, $700m went to Kenya
Private equity funds inflows into East Africa have hit over Sh100 Billion in the first seven months of 2018.
Kenya leads the pack in East Africa in attracting private equity funds accounting for over Sh70 Billion with Uganda, Rwanda and Tanzania sharing the rest of the deals.
According to the Chartered Financial Analysts Society (CFA) East Africa, foreign investors are channelling their funds towards agri-business, healthcare and tech companies with the opportunity to scale up and disrupt traditional business models.
Alan Norman Lwetabe, CFA Society Board member said that 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. For those that have perfected this, over 100 deals have been concluded so far” he said.
Kenya gets Sh70b of the Sh100b private equity funds inflows to East Africa - Capital Business
If Tz FDI was not in Mining sector you would have seen them leading in Private equity, venture capital, seed funding too.. You would have also seen them here...
Cape Town, South Africa, Jul 10 – Five Kenyan startups are among the top 10 companies that secured the highest amount of capital in the first half of 2018, according to a report by research and publishing firm, Weetracker.
Kenya’s Cellulant, which closed a record $47.5 million (Sh4.8b) investment, led other Kenya-based startups including mobile lender app Branch, M-Kopa Solar and software firm Africa’s Talking at the top of the most funded startups in the last six months.
The four, plus Agritech startup WeFarm, raised $91 million, which is more than half of the $168.6 million (Sh17b) capital that went to 118 deals across Africa during the period.
Overall, 2018 is already looking up for African startups compared to 2017 which saw 72 deals valued at Sh5 billion, representing a jump of 3.5 times in amount invested.
Fintech startups have continued their good run sweeping 25 deals followed by Healthtech, Agritech and e-commerce which managed to hit 13, 10 and 9 deals respectively.
Nigeria had the highest number of startups securing funding at 31, followed by Kenya (23), Egypt (21) and South Africa (19).
“Nigeria which managed a higher number of deals, could only get a gross of $29.41 million, while Kenya with lesser deals amassed, almost three times of the total funding received by Nigeria,” notes the report.
The Half Year 2018 has also seen the establishment of 15 funds including African Guarantee Fund, Goodwell Investments, A24 Media and AFDB fund to spur the development of startups
Kenyan tech startups scoop half of Africa's funding in six months - Capital Business
This is where you will find 95% of Kenyas FDI going in, while in TZ, most of the FDI will be related to the attractive sector which is very capital intensive.. So at the end of the year, TZ will outdo Kenya in FDI with for example a steel making company alone would need upwards of $1B in the first year and probably need additional $2b in the subsequent years.