Kenya has positioned itself as East Africa’s investment hub after attracting more than half of the region’s financial deals in the first eight months of the year, according to a report by IMBC.
Corporate financial advisory firm I&M Burbidge Capital (IMBC) in its latest research found that Kenya has taken over up to 57 out of 87 financial deals in the region over eight months.
According to the research report, Tanzania has closed 11 business agreements, while Uganda, Rwanda and Ethiopia have closed eight, six, and five deals respectively.
The firm’s analysts Edward Burbidge and Linda Obwora, told The Standard, “The two companies have created a JV called ImpAct to build a 40-hectare industrial business park development at an estimated cost of $111 million (Sh11.5 billion). The new development will be called Nairobi Gate Industrial Park and will be Kenya’s biggest industrial real estate investment to date.”
The report also showed that the East Africa region and Kenya have attracted 36 private equity deals. The number of merger and acquisition deals stood at 19. However, joint ventures and private equity exits performed below average in East Africa, only with a record of six deals. Bonds and commercial paper achieved one deal each, according to the media report.
The deal size for merger and acquisitions in East Africa stood at $562.6 million followed by private equity at $292.5 million and private equity exits at $224 million. Besides finance, sectors with active deals include energy, oil and gas, healthcare and agribusiness.