The Roundtable ended with a fireside chat by Dr. James Mworia, CFA (Group CEO and Managing Director, Centum Investment Company PLC) who was interviewed by Terryanne Chebet (Strategic and Business Development Lead, CNBC Africa) on how investors can harness Kenya’s potential and deepen private investment.
Kenya offers diverse sectors and investment strategies should be market and data driven.
Kenya has a diverse range of sectors that offer opportunities for investment including housing, education, financial services, energy, agriculture, and technology. An analysis of the economy demonstrates that these sectors will be critical to Kenya’s current and future economy. Investors should invest, modify and/or scale their investments based on a strong market hypothesis that is data driven.
Special Economic Zones provide a suitable operating framework for investors.
Operating frameworks such as the Two Rivers International Finance and Innovation Centre (TRIFIC) Special Economic Zone (SEZ) aim to solve the problem of fiscal inefficiencies faced by investors bringing capital into Kenya.
SEZs established under the Special Economic Zones Act enjoy incentives such as exemptions from stamp duty, Capital Gains Tax (CGT), taxes on interest and filming licenses. These incentives make it easier for FDI to flow into the country by making it fiscally attractive for investors to scale investments and compete globally.
Execution strategy is as crucial as the value creation plan.
Investments should not be made purely on the basis of a business’ value creation plan without considering the business’ execution strategy. The execution plan must include the selection of a good leader and competent management team and the establishment of processes to make sure that the leader can support their team during the implementation process.
In addition, execution must involve significant focus on managing inputs that will deliver results, monitoring and review activities, risk management and execution with the end in mind. Businesses that effectively balance value creation and risk management are considered to be highly attractive for investment.
The role of leadership is critical for business success and deepening investment.
James underscored the role of leadership in deepening private investment and supporting business growth. He described the role of leadership as “clearing the path” for teams to execute their mandates effectively. This entails dealing with any potential challenges that are beyond the control of the business, for example. regulatory challenges.
