A report from Venture Capital for Africa has shown that Kenya has become Africa’s second biggest venture capital destination. East Africa’s biggest economy beat South Africa, and is soon to overtake Nigeria. Kenya attracted 22% of venture capital flows to Africa, slightly less than Nigeria which attracted 23%. South Africa which has for many decades been the leading destination for private equity and venture capital in Africa is faltering over concerns of slowing growth, amidst sustained high economic growth in emerging regions such as East Africa led by Kenya. South Africa attracted only 11%, and was followed by Ghana, Cameroon and Egypt which attracted 8%, 6% and 5% respectively.
Kenya is favored by many foreign Investors, because it is a strategic gateway to the other countries in East Africa such as Uganda, Tanzania, Ethiopia, South Sudan, Rwanda and Burundi. The country has very well developed infrastructure, an organized city, Nairobi, and the biggest port in the region.
In terms of sector distribution, the biggest venture capital investments in the region were made in ICT (Software, Internet and E-Commerce), Agribusiness, Education, Media, Health Services, Financial Services, and Renewable Energy.
