Investing in Africa

Overview

Our focus: East Africa

Fusion has invested in East Africa since 2006 and has financed more than 270 companies. Four principles shape our approach:

• Investments built for African conditions: an investment has to work in African conditions, in the way a car built for European roads is adapted before it is driven on African ones.

• Alignment of interest: we invest alongside our investors.

• Detail on contract and title: we check the paperwork before the money moves.

• No assumed liquidity: we do not rely on being able to sell quickly.

Who invests with Fusion?

The East African Community thesis

A story of strong fundamentals

The East African Community (EAC) offers stable, balanced growth. Its political, legal and tax systems are maturing. Demographics and urbanization support long-term demand. Between 2007 and 2011, mobile and internet users in the region grew by about 200%.

EAC Growth Corridors

EAC Growth Corridors

The Northern and Central corridors link nine countries. Together they include about 5,000 km of roads, 4,500 km of rail, 17 border crossings and 2 seaports. The planned LAPSSET development at Lamu, including the South Sudan to Lamu pipeline, would add a further route to the coast.

Real Estate

East Africa has a large housing shortfall. Kenya builds about 35,000 units a year against a shortfall of about 150,000. Rwanda needs about 20,000 units and Uganda about 1.6 million. We target offices, middle-income residential, and industrial and commercial property along the development corridors. 

  1. Offices: Small and medium businesses make up most of the private sector in sub-Saharan Africa, and as they grow they need modern, well-located offices. Regional and international firms are also setting up in Nairobi, Kigali and Kampala, and good office space there is limited. 
  2. Middle-income residential: Africa’s urban population is growing faster than any other region’s, and housing supply has not kept up. A rising middle class wants quality, affordable homes, and the shortfall in Kenya, Uganda and Rwanda runs into the millions of units. 
  3. Commercial properties: Cities across East Africa are growing quickly, and people want to live, work and shop in one place. Mixed-use developments meet that demand and keep occupancy steady, because retail, offices and homes draw foot traffic for each other.

The investment environment

Infrastructure is improving. About 73% of roads are paved. Jomo Kenyatta International Airport handles over 5 million passengers a year. Mobile coverage reaches 92% of Kenyans and 97% of Ugandans, and the 5,000 km TEAMS undersea cable connects the region to global networks.

The East African Community thesis

Fusion deals only with professional investors. If you are not sure whether you qualify as a professional investor, please click here.

Whichever route you choose, we are required by law to verify your identity, confirm the source of your capital, and assess the suitability of the investment for you. To support this, Fusion Investment Management follows a rigorous yet smooth and efficient investor-onboarding process.

Contact one of our senior advisors in London or Nairobi if you would like to learn more.

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