East Africa attracting more venture capital

  Venture capitalists are increasingly eyeing East Africa for medium and long term investments, transaction advisers said yesterday. Director of transaction and restructuring services at KPMG Kenya Sheel Gill said the region ranked top on agenda of global financial investors who are increasingly looking to diversify their investments or exit mature markets. Foreign Direct Investments into the EAC, she said, averages Sh4.35 trillion ($50 billion) a year with Kenya getting the lion’s share. The share of private equity is however minimal at about 13 per cent for 2012, she said, projecting it to grow to 50 per cent in five years. “Most of the FDI inflows are usually by strategic investors mainly well established global brands but financial investors are increasingly getting interested,” she said. She said wholesale and retail, financial services and the oil and gas sectors are promising areas for venture capitalists in coming years. Gill spoke at a media briefing in Nairobi ahead of the launch of East Africa Venture Capital Association on November 7. EAVC executive director Nonnie Wanjihia said the private equity, though still at infancy, was a big area for future economic growth. Source: The Star A joint study by Deloitte and Africa Assets in April placed Kenya at the pole position in attracting private equity among 39 firms polled in Sub-Saharan Africa. Ethiopia, Rwanda and Uganda are however breathing on Kenya’s neck, Gill said.