Ever since the announcement of Big 4 for rejuvenation of the
economy was announced by the President, I wondered who had the vision to come up with the four and package them in such a way
that it would look like a goal worth pursuing and saving grace for the
administration in need of a legacy. Going back to several investment overtures
by the above entity, I wonder are we being taken for a ride by a plot hatched
to market their investments? Is it a fait accompli or do we have a possible remedy?
I wonder, does the IFC have such a good
a soothsayer who could predict that we would be having a focus on their key
areas of investment in 2018? In as much as I have my opinion on the matter of
foreign investment in key sectors of the economy, I can’t begrudge anyone in need
of investment and finding the perfect opportunity in Kenya. The land of
opportunity for some and the land of suffering for others.
At the onset of writing this, I
thought IFC is not much involved in Kenya. I guess I was wrong. The IFC has
been continuously scaling up its operations in Kenya through equity or debt
financing to budding ventures. However its in recent past that the investments
seem to have increased to the point I just have to mull it and wonder what it
all means.
There are areas of investment
that they have decided to focus on that are almost carbon copy of the Big Four
plans. Be the judge and tell me if it’s just coincidence or it’s a planned
takeover of the Kenyan economy. (In Case the Chinese don’t buy us first).
Manufacturing:
Most of the efforts mentioned in
fulfilling the manufacturing agenda of the president’s legacy requires funding
for capital investment. The IFC has already imprinted its presence in several
local companies. Now for the SMEs and other new entrants there will be a need
for loans, which will definitely be offered by those invested areas of which
the invested company would benefit most.
Housing:
IFC had already partnered with a Chinese firm in 2015 to
develop 30,000 housing units in Sub Saharan Africa in Kenya, Rwanda and Nigeria
initially.
Moreover IFC acquired 5% of
Mortgage firm Housing Finance with its acquisition of a stake of Britam. Britam
already holds 48.8% of Housing Finance shareholding. The article below also
notes other forays by IFC including loans to Equity (to be used to loan to
SMEs) and KCB and other investments and credit facilities in the country.
Also
IFC completes buying 10.3% stake in Britam
IFC has also put LaFarge in the loop to advance loans for "low-cost housing" developers for using Lafarge products for every unit.Quite a noble and altruistic motive I presume?
Kenyans to benefit from Lafarge low-cost home deals
IFC has also put LaFarge in the loop to advance loans for "low-cost housing" developers for using Lafarge products for every unit.Quite a noble and altruistic motive I presume?
Kenyans to benefit from Lafarge low-cost home deals
Healthcare:
I don’t need to point out the
various investments in healthcare
that IFC has already completed before the call for Universal healthcare. The
most recent press reporting on the issue is the article below and other writings
including the earlier one I wrote in 2017.
IFC targets Kenya healthcare with Shs 11bn equity fund
IFC backs Medical Credit Fund with $4.5million
If reaping from the middle class was not enough,the IFC also targets what they call impact investing in low-income earners.They have given $4.5million to Medical Credit Fund to scale up SMEa in healthcare targeting poor people.
IFC backs Medical Credit Fund with $4.5million
The investments aim at increasing the access to healthcare but seems to be misdirected.Universal health coverage cannot be attained through proliferation of private providers.
Food Security and nutrition:
Since the fourth pillar of the
plan involves food security and nutrition, trust that there has to be an
investment opportunity in starvation. The IFC has scaled up the collection of proceeds from relief operations in conflict and famine ravaged areas by acquiring a stake in it. It invested in Insta
products, a company that provides therapeutic foods for malnutrition in conflict
zones. Some of the users of the products are UNICEF and World Food Program.
In other food security related coincidence,just as the president is starting the Big four initiative which includes it,open field trials for GMO maize have been completed and you shouldnt be suprised to see them being issued out to farmers by the next planting season.
Kenya gives nod to open air trials of GMO Maize
And just on cue a KTN piece on GMO and its need bearing in mind diminished harvests.
Leading GMO advocates in Kenya have been the giant Monsanto and ironically the "philanthropist" Bill Gates foundation.Its worth noting Bill Gates holds $23.1 million worth of Monsanto shares.(Not that it counts as much to him).
Since the greater Rift Valley are all in government this time,there will be no objection to passing of GMO act to allow its availability to a seed depot soon.
As for fertilizers,IFC has given a loan to Nakuru based plant.
Did I mention that the VP of IFC for Middle East and Africa Mr Sergio Pimenta was in the country in January 2018 and met the President at State House.In their meeting some of the ways the private sector could help the government were discussed.
So, I wonder am I the one missing the point or was IFC on
to us and are just getting ready to start scooping all the tenders through
their proxy firms which they have invested in ? Only time will tell.
Broadly speaking IFc has its toes in all the waters of the land and not a bird that flies or plane is not touched by its impact.IFC owns 10% of Kenya Airways now.Even Tullow oil has a 5% investment from IFC.
IFC Invests Shs 5 billion in Turkana Oil
and other investments are with KTDA and other players.
I wish to point out that in all this the modus operandi of IFC is to issue loans and equity to fims and they just seat back and reap the profits while you toil.This is the Shylock syndrome that does not benefit anyone the most except the IFC.
In fact IFC has ensure it has its footprint in most commercial banks such that any loan you might take for a business venture today isnt coming from your bank but IFC.Since in most of the arrangements they are not equity for the bank,it only implies a financing mechanism with their cut assured.
As a conclusion we need to understand that IFC is dipping its toes into every venture that looks in the least bit lucrative and I wonder if they are ones setting the agenda or just that they have good clairvoyance.
Broadly speaking IFc has its toes in all the waters of the land and not a bird that flies or plane is not touched by its impact.IFC owns 10% of Kenya Airways now.Even Tullow oil has a 5% investment from IFC.
IFC Invests Shs 5 billion in Turkana Oil
and other investments are with KTDA and other players.
I wish to point out that in all this the modus operandi of IFC is to issue loans and equity to fims and they just seat back and reap the profits while you toil.This is the Shylock syndrome that does not benefit anyone the most except the IFC.
In fact IFC has ensure it has its footprint in most commercial banks such that any loan you might take for a business venture today isnt coming from your bank but IFC.Since in most of the arrangements they are not equity for the bank,it only implies a financing mechanism with their cut assured.
As a conclusion we need to understand that IFC is dipping its toes into every venture that looks in the least bit lucrative and I wonder if they are ones setting the agenda or just that they have good clairvoyance.
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