IFC Set to Invest 600 Million Shillings in Technology-Based Companies in Kenya
An international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries, International Finance Corporation (IFC), is set to invest 600 million shillings in technology-based companies in Kenya and other African markets.
The institution has increased its interests in local start-ups and said the money will be channelled through fund manager TIDE Africa which will identify and fund the firms.
This marks the latest investment in the sector in which IFC has committed more than $1.5 billion worldwide. Some of the local firms in which IFC has invested in the past one year are Africa’s Talking and food delivery firm Twiga Foods.
According to the institution, “IFC is considering an equity investment of up to $6 million (600 million shillings) in TIDE Africa Fund. Majority of TIDE’s investments will be concentrated in Anglophone Africa: Kenya, Nigeria, Ghana and South Africa, and the remaining allocation will be deployed in other Western, Eastern and Southern African countries, with a sectoral focus on consumer services, financial services, and enterprise technologies.”
IFC noted that TIDE has invested in five high growth digital companies in Kenya and Nigeria. Increased interest in local tech firms has enabled the companies to fund their growth, with some founders also cashing in by selling part of their stakes in the deals.