Kenya leads East Africa in private equity funding

7 March 2012

Business Daily Africa - March 6, 2012

Kenya last year attracted the highest amount of private equity funding for infrastructure in East Africa, with the country getting more than half the number of the deals, a survey carried out by consultancy Deloitte shows.

The results of the survey which was done in November last year with the help of Africa Assets—a Kenya-based research and consulting firm, covering private equity and venture capital—was based on responses from 33 companies that have received money and are implementing projects.

“The largest amount of capital deployed in East Africa in 2011 went through two investment rounds to Citadel Capital’s RVR,” said Deloitte a report released on Tuesday summarising the sectors’ performance last year and outlook for this year.

Cairo-based Citadel Capital began implementing a sustainable business and investment plan at Rift Valley Railways (RVR) that includes a five-year capital expenditure programme to rehabilitate infrastructure and rolling stock that will cost approximately Sh24.4 billion ($287 million).

The private equity fund owns Africa Railways which has a 51 per cent stake in RVR which holds a 25-year concession to operate 2,352 kilometres of track linking Mombasa to Kampala.

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Categories: Transport, General

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