Shadrack Nyakoe
By Njeri Irungu
NAIROBI, Kenya – July 3, 2025 — The Kenya Development Corporation (KDC) took center stage at the Next Frontier Africa Summit 2025, held in Nairobi, where development finance institutions (DFIs), policymakers, business leaders, and entrepreneurs gathered to shape the future of Africa’s growth. At the heart of the discussions was a shared commitment to unlocking capital, empowering communities, and building resilient, inclusive economies across the continent.
DFIs were widely recognized as key drivers of Africa’s next development phase, offering far more than just funding. From tailored financial solutions to sector-specific advisory and technical support, they are playing a catalytic role in transforming high-impact sectors such as agriculture, digital infrastructure, manufacturing, and micro, small and medium enterprises (MSMEs). KDC emphasized the need to blend finance with innovation and to crowd in private investment through de-risking tools and smart partnerships. Strong alignment with continental frameworks like the African Continental Free Trade Area (AfCFTA) was noted as a crucial enabler for coordinated, people-centered development.
One of the central themes that emerged during the summit was the future of manufacturing in Kenya. Stakeholders rallied behind a bold vision to raise the sector’s contribution to GDP to 20 percent by 2030 while creating over a million new jobs, particularly for youth and women. Speakers called for urgent action to address longstanding challenges—high energy costs, complex tax and regulatory systems, and limited access to capital—which have hindered industrial competitiveness and SME growth. There was a strong push for simplifying licenses, accelerating agro-processing, and fostering value addition for both local and export markets. Green growth, circular economy models, and cleaner production methods were also spotlighted as vital to building a more sustainable industrial base.
Agriculture, too, took a prominent place in the summit’s discussions. In a powerful session on post-harvest management, alarming figures revealed that Kenya loses up to 40 percent of its agricultural produce after harvest due to poor handling, weak storage infrastructure, and fragmented supply chains. The Kenya Postharvest Management Strategy (2024–2028) was singled out as a timely and necessary roadmap for reversing these losses. KDC underscored the need for strategic financing mechanisms—including project and asset financing, working capital, and equity funding—alongside partnerships with global institutions such as the World Bank and EXIM Bank. There was a resounding call to move from policy to action, with farmers, agri-entrepreneurs, and processors at the center of a scalable, bankable, and inclusive agricultural transformation.
Another critical conversation focused on the challenges facing SMEs and startups across Africa. During a panel on SME growth and startup capital solutions, participants highlighted the importance of financial discipline, smart record-keeping, and investor readiness as foundational elements for enterprise success. Beyond funding, SMEs need one-on-one advisory support, patient capital tailored to their growth stage, and predictable operational costs—especially for energy. It became clear that driving SME growth requires more than isolated interventions. What’s needed is an ecosystem approach that combines finance, mentorship, policy reform, and infrastructure to help small businesses move from survival to scale.
The summit also tackled the complex but essential topic of inclusive public–private partnerships (PPPs). In a session on financing inclusive growth, speakers explored how PPPs can be reimagined as tools for social equity and economic justice. Rather than treating inclusion as charity, participants argued for rights-based approaches that embed youth, women, persons with disabilities, and rural communities into national development plans. Recommendations included creating a PPP Implementation Trust Fund for underserved groups, offering assistive technologies, and tailoring financial products to local realities. There was also a call for clear feedback mechanisms for informal enterprises, more inclusive workplace policies, and incentives for hiring persons with disabilities. All of this, speakers said, must be underpinned by cross-sector collaboration and visionary leadership.
Climate change was another major concern, with the Climate Sector Forum urging a shift from dialogue to practical action. Participants explored how Kenya can anchor its green transition through investment in areas such as urban resilience, e-mobility, agroforestry, eco-tourism, and green value chains like mango and citrus processing. However, bottlenecks such as fragmented licensing procedures, limited local carbon markets, and lack of capacity in climate finance were flagged as key barriers. Solutions proposed included green fiscal frameworks, staggered licensing fees, and the establishment of local data registries. The forum emphasized the importance of building local expertise in proposal writing and ESG principles, integrating climate finance into education systems, and simplifying technical language to empower grassroots participation.
Throughout the summit, the central message remained consistent: the future of Africa lies in investing in people. Education, practical skills development, and youth and community empowerment must take priority in the continent’s development agenda. KDC reiterated its commitment to creating financial solutions that are not only commercially viable but also socially transformative.
“We are not just financing projects—we are investing in people, possibilities, and a better future for Africa,” said KDC in its closing statement. As the conversations at the summit concluded, one thing was clear: unlocking Africa’s potential will require bold thinking, inclusive partnerships, and unwavering commitment to shared prosperity.
Patmoz
