Kenya’s booming information and communication technology (ICT) sector is attracting more foreign attention from private equity funds which are investing in various ICT opportunities. Savannah Fund and 88mph, have earmarked a total sum of Sh856.8 million ($10.2 million) for various ICT investments.
Savannah Fund will aid early-stage mobile and web-space ICT entrepreneurs (“techpreneurs”) with a seed capital investment of Sh840 million ($10 million) while 88mph has also committed Sh16.8 million ($200,000) to fund Kenyan ICT experts who have ideas that could be transformed into profitable enterprises.
88mph programme manager, Nikolai Barnwell said they have identified outstanding opportunities for commercial mobile and web companies in the ICT market which require risk-willing funding and support.
Mbwana Alliy, a managing partner said “We are backed and supported by local, regional and international networks of angels, venture capitalists whose expertise we can draw on to help start-ups succeed and scale to fully fledged regional or global companies.”
Savannah Fund will target new and already established ICT establishments through the accelerator and follow-on programmes.
For the accelerator programme, Savannah Fund will finance 25 new creations with about Sh210, 000 ($25,000) each in exchange for 15 per cent equity; while the follow-on initiative will see the equity fund company investing a maximum of Sh42 million ($500,000) in each liquidity – seeking mature business.