Author: Antony mutunga

For years now, mergers and acquisitions (M&A) have gained popularity in Africa. In fact, many African start-ups have come to see them as an exit strategy or as a way of consolidating their positions and expanding. Even though start-up M&As are becoming the norm in Africa, they took a hit in the first half of 2023, declining to levels last seen in 2019. According to Africa The Big Deal, start-up deals database, the number of start-up M&A in Africa in H1 2023 stood at 16 as compared to 41 in the same period in 2021 and 40 in 2022. The…

African fintech is taking the continent by storm, as its growth continues to be vital to improving financial inclusion. Despite the number of unbanked remaining high in the region, Africa’s growing population is expected to increase financial inclusion due to the increasing access to smartphones, especially by the youth. Kenya is among the leading markets for fintech, and the sector is about to acquire more support as Exness extends its popular Fintech Scholarships program to the economy. The multi-asset broker has agreed with the United States International University (USIU) to support outstanding university students in a STEM field. The program…

East Africa’s medical devices market is expected to grow rapidly in coming years on the strength of progress the region has made in its health sector. And, although there remain many challenges in general, the region’s medical devices market is one of the fast-rising regions that offers unique opportunities for medical device manufacturers and suppliers. With a population of over 480 million per the UN and an increase in awareness for healthcare services due to the rising cases of chronic diseases, the demand for medical devices in the region has increased immensely. In addition to an increase in investment in…

Despite the setbacks of the Russian-Ukraine war and an ongoing climate crisis, Africa has remained resilient, recording an economic growth of 3.8% in 2022 – projected to rise to 4.1% in 2023-2024 – exceeding the global average of 2.9% and the European average of 1.1%. ‘The time to invest in Africa is now.’ This is the message that Prof Kevin Urama, Chief Economist and vice president of the African Development Bank Group, put across to Asian markets as he presented them the 2023 edition of its flagship African Economic Outlook report. During a joint session between the African Development Bank…

The government has concluded a deal with oil corporations from the Gulf to reduce the cost of the fuel being supplied on credit. Energy and Petroleum Cabinet Secretary Davis Chirchir led a delegation to the Middle East to negotiate the deal following a drop in global crude oil prices and to negotiate repayment terms of the credit fuel the country receives from three Gulf oil corporations. At the end of March, Saudi Aramco, Abu Dhabi National Oil Corporation Global Trading (ADNOC) and Emirates National Oil Corporation (ENOC) won a bid to supply petroleum to Kenya through credit and signed a…

Policy shift Africa’s leading geothermal energy producer, KenGen is set to lose billions in revenue this year after Kenya Power’s decision to make the shift to renewable energy. The state electricity distributor has decided against renewing supply contracts for two of its diesel plants. The affected plants are the Kipevu I 73.5MW diesel-powered plant and the Muhoroni 60MW gas turbine facility, whose contracts are to expire before the year ends. Similarly, Kenya Power saw its power purchase agreements with the privately-owned Iberafrica 52.5MW power plant and Tsavo Power 75 MW thermal power plant also come to an end. The move…

During the 20th century, Africa’s need to develop and increasing financial assistance from the developed countries and global institutions in terms of credit saw the continent become dependent on borrowing. Increases in interest rates, such as when the 1980 global recession struck and the growth of emerging markets such as China also increasing access to credit, some African countries now find themselves at risk of a debt crisis that has the potential to further hamper economic growth. According to Vincent Mutua, an economics scholar, the increase in borrowing from African countries over the decades and poor economic performance has worsened…

In North America, tens of millions of people have been affected by Canadian wildfire smoke. The situation has worsened recently as several states in the US, such as New York, which had the worst air quality of any big city in the world on the Air Quality Index (AQI) as of June, have issued air quality alerts. Even though wildfires are part of the ecosystem, it is clear that the climate crisis continues to make them more intense and frequent. Climate change is changing the world, and its impact is evident around the globe. Despite not facing environmental catastrophes such…

It has been less than a month since the government, through the Energy and Petroleum Regulatory Authority (EPRA), increased the fuel prices, pushing a liter of petrol past the Sh180 mark. The fuel burden on Kenyans is only expected to increase in the near future. Under the proposed bill, the government wants to double the VAT to 16%. If the Finance bill, 2023, passes, as it likely will, it will increase the value added tax (VAT) on fuel. What is more, Saudi Arabia, the world’s top oil exporter, recently announced that it will cut its oil production by another one…

Urbanization in Africa has surpassed the rest of the world in the last two decades as population increase has led to increased rural-urban migration. And even though it is having a positive impact on the continent, it has not brought about inclusive growth. Most African cities are comprised of a large number of people living in slums, rising poverty, and inequality. Nairobi is such an example. Despite holding a population of over 4 million and accounting for over 30% of Kenya’s urban residents as of 2019, the capital city of Kenya continues to be absorbed by informal settlements and slums.…