tbaari September 23, 2020Now is the best time for millennials to grab the opportunity to participate in projects that enhance social impact awareness, leads to development and tells the Kenyan story. For far too long, this has been left to investors from the Silicon Valley to tell our story by flying in and out without understanding our reality on the ground. Things are happening in Kenya – big things and we want the millennials to own up and participate in this exciting process.
1. The Opportunities in Social Impact Are Abundant
According to Investopedia.com, impact investing aims to generate specific and beneficial social or environmental effects in addition to financial gains. The point of social investing is to use money and investment capital for positive social results. Impact investing refers to an investment strategy that not only generates financial returns but creates constructive incomes. Impact investing attracts individuals as well as institutional investors including hedge funds, private foundations, banks, pension funds, and other fund managers.
Social impact projects trickle down to every sector, e.g. education, healthcare, employment and, the environment. Millennials can work with the government in achieving the Big 4 Agenda aligned to the Sustainable development goals. There is also a gap to fill because Kenya requires more investors and entrepreneurs. For example, 47 percent of investments in Kenya come from investors in Europe and North America. Did you also know that 90 percent of funding for East Africa start-ups goes to foreigners and not local founders?
Kenya is famous for being a regional hub and the third largest private equity market in Sub-Saharan Africa. Millennials are adept to solve on- ground problems that create a lasting impact. They understand inclusivity and sustainable development. Kenya has also secured the KSh 70 billion Turkana Wind project and Centum Investment’s KSh 30 billion Akiira one geothermal plant. This project enhances investor confidence in the government’s ability for steady and predictable revenues.
2. There Is a Big Opportunity for Women in This Niche
Woman can now take advantage of the many opportunities to participate in impact awareness investments and partnerships. Women can help governments to eradicate poverty by seeking private capital that unlocks financial and social good. More women can diversify investment in different companies because over 70 percent of the capital deployed in 2017 went to only five companies.
A Women can take advantage of the opportunities to partner with international companies such as Google, the Rockefeller Foundation, Bosch, GE, Wells Fargo, Coca-Cola, Johnson & Johnson, Ford Motor Company, Netflix & Spotify, Pfizer, Starbucks and the New Belgium Brewing Company.Locally, they can engage Starehe Boys and Girls Sponsorship, Palmhouse Foundation, Enactus, Faraja Cancer Trust Support, Rhino Ark Charitable Trust and Kenya Marble Quarry Primary School.
There is one big advantage for women who enter this market: 80 percent of the population is younger than 35 years (this shows a young and vibrant demographic). Also note that Kenya only has a paltry 100 impact investors operating in the country. Women can ensure that no girl gets left behind in terms of education. Much work needs to be done within this sector this a whopping 30 million children in school are not reading. Once these girls get an education they will be provided with not only the alternative to get employed but also being their own bosses.
3. Every Country Needs to Establish a National Advisory Board
Governments are responsible for creating the enabling environment and policies to transform the lives of their citizens. A National Advisory Board (NAB) exists to represent all the stakeholder groups in the country, to redirect significant capital flows towards social and environmental impacts and achieve the SDGs. NAB raises awareness, creates market intelligence, changes policies and mobilizes additional resources for the public good.
Kenya will be joining the league of 32 other countries in the world such as UK, Japan, Canada, Australia, South Korea, Portugal and South Africa with a working NAB. The NAB presence in Kenya will be the key to unlock untapped opportunities for policy change, support the government in achieving its SDGs, social and environmental investments. NAB will allow for Impact entrepreneurs, Impact Inventors, Impact Managers, and Impact enablers to mobilize investing capital for sustainable impact in the country.
Key Lessons
The aim and end goal of social investing is stimulating the minds of emerging impact investors, social enterprises, incubators, support providers, policy makers and impact entrepreneurs to achieve low cost housing, affordable health services, solar panels, clean sanitation facilities, increased access to sanitation, housing and electricity to marginalized and low income communities in Kenya.
The concrete lesson to take away is the vast opportunities available for Kenyan women and millenials in the social impact awareness industry in 2020. Opportunities are available to partner with the local government, private equity firms, East Africa, international companies and countries. Once the government makes the regulatory environment friendlier then policymakers would encourage foreign companies to register in Kenya.
Article By:
Andrew Kiserema,
Freelance Writer, Blogger & Customer Experience Practitioner.
