The Ministry for Investments, Trade, and Industry has midwifed a transformative partnership between the European Investment Bank (EIB) and the Young Business in Africa initiative in partnership with the KCB Bank Kenya, aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) in Kenya.
Stakeholders from Team Europe met in Nairobi to launch an initiative dubbed Investing in Young Businesses in Africa (IYBA), which aims to address the current challenges and opportunities available to support youth and women-led businesses and early-stage start-ups in Africa and propose recommendations to improve the private sector.
Speaking at the event, Investments, Trade, and Industry Cabinet Secretary Salim Mvurya said that the role of the project is to stimulate sustainable industrial growth in Kenya through sub-contracting, which not only creates jobs and enhances market access to the MSMEs but also allows transfer of technology to improve quality products and merely capacity building.
The CS has urged women and youth to take advantage of IYBA, a unique tool which is crucial for economic revitalisation and aims to accelerate the growth of start-ups and young entrepreneurs by providing access to finance, mentorship, and technical assistance.
“The IYBA initiative supports the growth of young entrepreneurs’s start-ups in Africa by providing access to finance, mentorship, and technical assistance,” he said, adding that it helps businesses succeed in Kenya, where 80 per cent of the population is below 35 years, young entrepreneurs who are the driving force of innovation in technology, agriculture, and the energy sector,” said Mvurya.
The CS emphasized the role of MSMEs in Kenya’s economy, which contributes over 33 per cent to the nation’s GDP; hence, the initiative would provide critical funding and resources that focus on supporting young entrepreneurs and women.
“This credit line is a vital lifeline for early-stage business, empowering our youth and women to embark on self-sustaining ventures,” he stated.
Mvurya noted that access to finance remains a significant challenge for many MSMEs, often stunting their potential growth.
“This comprehensive approach will create diverse funding opportunities, enabling MSMEs to recover, scale, and contribute to sustainable economic growth,” he added.
The CS highlighted the importance of MSMEs in fostering innovation and establishing value chain linkages with larger enterprises by developing customised products and services that will enable the MSMEs to meet both local and global market demands and retain the wealth within their communities.
“As the Ministry undertakes rigorous reforms to enhance the business and investment climate in Kenya, it has intensified efforts towards industrial subcontracting strategy set to stimulate sustainable development by facilitating technology transfer, improving product quality, and enhancing market access for MSMEs,” he said.
By Sharon Atieno
