Kenya is set to benefit from a Sh13.7 billion investment from the United Kingdom courtesy of British International Investment (BII) and Standard Chartered Bank.
Some Sh650 million of this investment will go towards improving electric motorbike infrastructure in the country.
The investment announced at the East Africa Trade and Investment Forum (EATIF), will also trickle to Tanzania through trade financing.
BII and Standard Chartered Bank will support trade finance in Kenya and Tanzania through a Sh13 billion facility (USD 100 million). The facility is meant to de-risk cross border and local trade.
“This will make finance more accessible for businesses as well as increase the availability of vital goods and services,” says the British High Commission in a statement. “Investment qualifies for the ‘2x Challenge’ which advances gender equality and women economic empowerment in developing countries.”
The ‘2x Challenge’ is a G7 initiative that dates back to 2018 and is meant to increase investments to empower women in developing countries.
The statement adds that apart from the facility supporting female led businesses, it will also create employment and leadership opportunities. The initiative targets to finance over Sh58.5 billion (USD 450 million) in trade volumes.
The Sh13 billion trade finance with BII and Standard Chartered Bank is a 50-50 risk sharing facility.
In addition, BII will be making a Sh650 million (USD 5 million) investment in electric motorbike infrastructure in Kenya. The investment will support ARC Ride’s initial rollout of 5,000 electric motorbikes and upgrade battery swapping infrastructure which should increase adoption.
“This will directly result in over 100,000 metric tons of CO2 per year being saved as electric mobility replaces petrol motorbikes,” the statement says.
BII Managing Director and Head of Africa, Chris Chijiutomi said by making trade finance more accessible and backing innovative infrastructure projects like electric motorbikes, the critical needs of the regions are being addressed.
“We are not only supporting businesses that are the backbone of these economies, but also driving inclusive and sustainable growth, contributing to a more resilient and prosperous East African region,” he said.
BII is UK’s development finance institution.
The two-day EATIF concluded on Thursday. It was organised by DMA Invest, a development consultancy, and the East Africa Association in partnership with the UK government.
Lord Collins, the UK government Minister for Africa attended the event that had representation from the private sector and governments from Kenya, Uganda and Tanzania.
Kenya was represented by State Department for Investment Promotion Principal Secretary Abubakar Hassan Abubakar.
“Kenya provides Africa’s leading value proposition for private capital, with great portfolio of opportunities in key sectors,” said the PS, calling for economic integration in the region.
Lord Collins said UK is a long-term partner of the region and the forum is expected to lay a pipeline of private sector investment between them.
“This, combined with much needed improvements to regulations and resilience, will lead to jobs and mutual growth in the future,” he said.
Kenya is set to benefit from a Sh13.7 billion investment from the United Kingdom courtesy of British International Investment (BII) and Standard Chartered Bank.
Some Sh650 million of this investment will go towards improving electric motorbike infrastructure in the country.
The investment announced at the East Africa Trade and Investment Forum (EATIF), will also trickle to Tanzania through trade financing.
BII and Standard Chartered Bank will support trade finance in Kenya and Tanzania through a Sh13 billion facility (USD 100 million). The facility is meant to de-risk cross border and local trade.
“This will make finance more accessible for businesses as well as increase the availability of vital goods and services,” says the British High Commission in a statement. “Investment qualifies for the ‘2x Challenge’ which advances gender equality and women economic empowerment in developing countries.”
The ‘2x Challenge’ is a G7 initiative that dates back to 2018 and is meant to increase investments to empower women in developing countries.
The statement adds that apart from the facility supporting female led businesses, it will also create employment and leadership opportunities. The initiative targets to finance over Sh58.5 billion (USD 450 million) in trade volumes.
The Sh13 billion trade finance with BII and Standard Chartered Bank is a 50-50 risk sharing facility.
In addition, BII will be making a Sh650 million (USD 5 million) investment in electric motorbike infrastructure in Kenya. The investment will support ARC Ride’s initial rollout of 5,000 electric motorbikes and upgrade battery swapping infrastructure which should increase adoption.
“This will directly result in over 100,000 metric tons of CO2 per year being saved as electric mobility replaces petrol motorbikes,” the statement says.
BII Managing Director and Head of Africa, Chris Chijiutomi said by
making trade finance more accessible
and backing innovative infrastructure projects like electric motorbikes, the critical needs of the regions are being addressed.
“We are not only supporting businesses that are the backbone of these economies, but also driving inclusive and sustainable growth, contributing to a more resilient and prosperous East African region,” he said.
BII is UK’s development finance institution.
The two-day EATIF concluded on Thursday. It was organised by DMA Invest, a development consultancy, and the East Africa Association in partnership with the UK government.
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Lord Collins, the UK government Minister for Africa attended the event that had representation from the private sector and governments from Kenya, Uganda and Tanzania.
Kenya was represented by State Department for Investment Promotion Principal Secretary Abubakar Hassan Abubakar.
“Kenya provides Africa’s leading value proposition for private capital, with great portfolio of opportunities in key sectors,” said the PS, calling for economic integration in the region.
Lord Collins said UK is a long-term partner of the region and the forum is expected to lay a
pipeline of private sector investment
between them.
“This, combined with much needed improvements to regulations and resilience, will lead to jobs and mutual growth in the future,” he said.
By Graham Kajilwa