The partnership between Africa and the Gulf countries has been taunted as a major milestone towards promoting businesses and triggering economic growth in African countries.
Small and Medium Enterprises (SMEs) are set to be the major beneficiaries with eased access to financing as well as investment opportunities to grow and sustain the ventures.
Partners under the Gulf-Africa Investment Nexus (GAIN) maintain that African start-ups and SMEs will access funding through collaborations with Gulf investors noting that the Gulf region is the market of liquidity while Africa is the center of resources.
GAIN CEO Dr Princess Mutisya averred that Kenya-Gulf partnerships are benefiting SMEs by providing crucial access to financing, markets, and specialized technical support, including digitalization training.
She spoke during a Gulf-Africa investment summit involving industry leaders and chambers of commerce in a Nairobi hotel on Thursday.
Dr Mutisya noted that these collaborations aim to overcome financing barriers, enhance operational capacity, foster sustainable business practices, and facilitate integration into global value chains, ultimately promoting growth and economic transformation for Kenyan SMEs.
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“For African and especially Kenyan businesses to secure funding from the Gulf, trade barriers and majorly trust issues between the two regions must be addressed so as to unlock financing and investment opportunities.” She said.
Dr Mutisya, an International Trade Lawyer, revealed that GAIN will launch a Gulf Enterprise Fund in November to enhance accessibility to financing solutions for Kenyan start-ups adding that there are also investors who are ready to finance business investments.
“With adequate funding, proper training and sensitization, the country’s growth will stir up as remittances will grow significantly and trade increase in diverse fields including infrastructure, real estate among others,” Dr Mutisya said.
Michael Gathu, the Chief Representative of Dubai International Chamber East Africa noted that the partnerships will address other trade barriers including lack of information and also ensure that Kenyan businesses are provided with market intelligence as well as linkages with international firms and partners.
“Gulf countries provide a huge market that should be exploited by Kenyans. Those in the Agribusiness sector should embrace latest technologies as well as value addition for their products to enter the Gulf markets,” he said.
Gathu also advised SMEs and Kenyan firms to consider creating and or joining consortium so as leverage on the global market.
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Similar sentiments were echoed by Samchi Group of Companies CEO Dr Esther Muchemi who reiterated that there’s adequate funds for fintechs, start-ups and SMEs in the Gulf which will only be unlocked by addressing trust deficits between the two regions.
She called on the government to create better policies to promote investments including reviewing the country’s tax regime, lowering tariffs as well as create an enabling environment for manufacturing to thrive in the country.
“The government must make interventions that will promote manufacturing in the country and ensure that there’s a friendly environment for investments,” she said.
Dr Mercy Mwongela highlighted that the Government must address critical gaps that hinder business and investments growth in the country. She quipped that adequate investments must be made in the energy sector, which is a vital recipe for manufacturing.
She also pointed out graft and bureaucracies in the government as a thong in the flesh for most Kenyans and key sectors in the country noting that this has killed many dreams and start-ups, even before they takeoff.
Martin Chomba, the Chairman of Petroleum Outlets Association of Kenya, hailed the partnerships as transformational noting that partners will provide technical assistance, such as financial readiness training, and support in areas like supply chain management and bookkeeping to improve SME operations.
He reiterated that these collaborations foster stronger market linkages and help to create new opportunities for businesses to grow and connect with global value chains.
By John Kamau
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