Phylis Kandie roots for SMEs to up growth

By Stephen Makabila

Kenya: East African Community, Commerce and Tourism Cabinet Secretary Phyllis Kandie has called for more investment of equity fund in the small and micro-enterprise (SME) sector to boost economic growth.

Speaking at a Nairobi hotel when she launched the DOB Equity Funds of Netherlands, who are setting up offices in Africa for the first time, Mrs Kandie said SMEs were in dire need of affordable financing to expand their businesses and venture into new startups.  DOB Equity is an independent, long-term investor in companies that contribute to a more social and sustainable society. The Netherlands based organisation has been active in the region since 2007 and has now decided to have a permanent presence locally. Kandie referred to the issue of financing small and medium sized enterprises as the missing link. She expressed the need for long-term capital, which will allow entrepreneurs to sustainably grow their businesses.

SMEs generate jobs and contribute to the growth of GDP in the East African region. As a former investment banker, Kandie said private equity is an appropriate instrument for growing businesses. Investors become co-owners of the companies and provide finance as well as active support to maximise the value of the company.  Kandie further urged DOB Equity to invest in companies that add value to locally sourced raw materials.