Services across the ecosystem

SEA Connect is a tool for 

SEA Connect Overview

We focus on urban regions of East Africa with populations greater than ~1 million.

We focus is on the rapidly urbanizing regions of East Africa, specifically urban areas with populations greater than ~1 million in Kenya, Tanzania, Ethiopia, Uganda & Rwanda. We believe these cities will be the engines driving regional social and economic growth development due to their connectivity and density, in turn, offering tremendous untapped potential for value creation.

Country Profile
Kenya has made significant political, structural and economic reforms over the past decade. With approximately 44.2m inhabitants and an annual growth rate of 2.6%, Kenya is the seventh-most populated country in Africa.

Demographics
Demographically, it is also very young, with the average age around 18 years and more than 50% of the population under 25. While this has helped drive sustained economic growth and social development, key challenges like extreme poverty, inequality and exposure to domestic and international shocks still remain ever present.

Country Profile
Kenya has made significant political, structural and economic reforms over the past decade. With approximately 44.2m inhabitants and an annual growth rate of 2.6%, Kenya is the seventh-most populated country in Africa.

Demographics
Demographically, it is also very young, with the average age around 18 years and more than 50% of the population under 25. While this has helped drive sustained economic growth and social development, key challenges like extreme poverty, inequality and exposure to domestic and international shocks still remain ever present.

Economics
Kenya was the sub-Saharan Africa’s fifth-largest economy in 2015 behind Nigeria, South Africa, Angola and Sudan, ranked 11th in inward foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues. In 2016, Kenya exported $4.7B and imported $15.8B, resulting in a negative trade balance of $11.1B. In 2016 the GDP of Kenya was $70.5B and its GDP per capita was $3.16k.

Politics
The passing of a new constitution in 2010 which introduced a bicameral legislative house, devolved county government, constitutionally tenured Judiciary and electoral body have ushered in a new political and economic governance system which has helped to strengthen accountability on the local level. This has helped to spread power and increased the incentive structure for mutual commitment towards long term development.

Development
The country’s long term development plan, Vision 2030, has proven largely successful to date and continues to serve as a model for other developing nations in the region. This past December the president outlined the “Big Four” development priority areas for his final term as President, which will prioritize manufacturing, universal healthcare, affordable housing and food security. Kenya has met some Millennium Development Goals (MDGs) targets, including reduced child mortality, near universal primary school enrolment, and narrowed gender gaps in education.

Looking ahead
Kenya has and continues to play a pivotal role for the development of the broader East African region. Challenges such as poverty, inequality, governance, climate change, low investment and low firm productivity will be major hurdles for Kenya and the broader region for the years to come. Its growing youthful population, dynamic private sector, skilled workforce, improved infrastructure development, political reforms, and strategic geography offer much reason for a positive outlook.

Exports
In 2016 Kenya exported $4.7B, making it the 107th largest export economy in the world. The top exports of Kenya are Tea ($1.09B), Cut Flowers ($673M), Coffee ($219M), Legumes ($139M) and Titanium Ore ($106M), using the 1992 revision of the HS (Harmonized System) classification. 

The top export destinations of Kenya are the United States ($524M), the Netherlands ($467M), Uganda ($441M), Pakistan ($394M) and the United Kingdom ($386M).

Imports
In 2016 Kenya imported $15.8B, making it the 79th largest importer in the world. During the last five years the imports of Kenya have increased at an annualized rate of 5.2%, from $12.2B in 2011 to $15.8B in 2016. The most recent imports are led by Refined Petroleum which represent 8.05% of the total imports of Kenya, followed by Packaged Medicaments, which account for 3.13%.

Its top imports are Refined Petroleum ($1.28B), Packaged Medicaments ($495M), Cars ($442M), Delivery Trucks ($278M) and Telephones ($271M).

The top import origins are China ($5.59B), India ($2.46B), Japan ($711M), the United Arab Emirates ($628M) and South Africa ($557M).

Comparative advantages
The East African market has one of the highest financial inclusion rates in the developing world, and a strong and diversified private sector. Kenya is also seen as a safe haven for assets in the region, with significant inflows from countries such as Somalia and South Sudan a contributing factor to the country’s overall balance sheet.

The Kenya startup ecosystem is often ranked amongst the best in Africa, alongside South Africa, Nigeria and Ghana.

Kenya’s startup ecosystem has been the benefactor of a series of successes where the government has provided access to data, investments in infrastructure and political reforms which make the region more appealing to investors. The presence of international research labs has also helped to make Kenya a more attractive destination for talent and investors alike.

The rapid penetration of mobile phone connectivity has brought with it access to information, and thus increased maturity in customer needs and refinement of customer tastes. The middle class are not only technologically aware but they love to move with technology trends. This has led to customer pressure to innovate around service delivery which has led to many businesses being unable to keep up with these customer needs.

As a result, there are a lot of gaps that startups aim to bridge with clever innovations, making customers in some captive markets ready to test and trial these solutions. This, coupled with the fact that there is a lot of fragmented service delivery in many industries, makes the startup ecosystem very vibrant.

Kenyan startups raised a total of US$32.8 million in 2017, according to the most recent African Tech Startups Funding Report, the third largest amount raised by any one country on the continent. 

The Kenya startup ecosystem is often ranked amongst the best in Africa, alongside South Africa, Nigeria and Ghana.

Kenya’s startup ecosystem has been the benefactor of a series of successes where the government has provided access to data, investments in infrastructure and political reforms which make the region more appealing to investors. The presence of international research labs has also helped to make Kenya a more attractive destination for talent and investors alike.

The rapid penetration of mobile phone connectivity has brought with it access to information, and thus increased maturity in customer needs and refinement of customer tastes. The middle class are not only technologically aware but they love to move with technology trends. This has led to customer pressure to innovate around service delivery which has led to many businesses being unable to keep up with these customer needs.

As a result, there are a lot of gaps that startups aim to bridge with clever innovations, making customers in some captive markets ready to test and trial these solutions. This, coupled with the fact that there is a lot of fragmented service delivery in many industries, makes the startup ecosystem very vibrant.

Kenyan startups raised a total of US$32.8 million in 2017, according to the most recent African Tech Startups Funding Report, the third largest amount raised by any one country on the continent. 

Kenya has and continues to play a pivotal role for the development of the broader East African region. Challenges such as poverty, inequality, governance, climate change, low investment and low firm productivity will be major hurdles for Kenya and the broader region for the years to come. Its growing youthful population, dynamic private sector, skilled workforce, improved infrastructure development, political reforms, and strategic geography offer much reason for a positive outlook.

In the long-term, adoption of prudent macroeconomic policies will help safeguard Kenya’s robust economic performance. This includes implementation of fiscal and monetary prudence and lowering deficit down to 4.3% by FY19/20 as per the Medium Term Fiscal Framework. The fiscal consolidation needs to avoid compromising public investments in critical infrastructure key to unlocking the economy’s productive capacity.

Kenya has made significant political, structural and economic reforms over the past decade. With approximately 44.2m inhabitants and an annual growth rate of 2.6%, Kenya is the seventh-most populated country in Africa.

Demographics
Demographically, it is also very young, with the average age around 18 years and more than 50% of the population under 25. While this has helped drive sustained economic growth and social development, key challenges like extreme poverty, inequality and exposure to domestic and international shocks still remain ever present.

Economics
Kenya was the sub-Saharan Africa’s fifth-largest economy in 2015 behind Nigeria, South Africa, Angola and Sudan, ranked 11th in inward foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues. In 2016, Kenya exported $4.7B and imported $15.8B, resulting in a negative trade balance of $11.1B. In 2016 the GDP of Kenya was $70.5B and its GDP per capita was $3.16k.

Politics
The passing of a new constitution in 201 which introduced a bicameral legislative house, devolved county government, constitutionally tenured Judiciary and electoral body have ushered in a new political and economic governance system which has helped to strengthen accountability on the local level. This has helped to spread power and increased the incentive structure for mutual commitment towards long term development.

Development
The country’s long term development plan, Vision 2030, has proven largely successful to date and continues to serve as a model for other developing nations in the region. This past December the president outlined the “Big Four” development priority areas for his final term as President, which will prioritize manufacturing, universal healthcare, affordable housing and food security. Kenya has met some Millennium Development Goals (MDGs) targets, including reduced child mortality, near universal primary school enrolment, and narrowed gender gaps in education.

Looking ahead
Kenya has and continues to play a pivotal role for the development of the broader East African region. Challenges such as poverty, inequality, governance, climate change, low investment and low firm productivity will be major hurdles for Kenya and the broader region for the years to come. Its growing youthful population, dynamic private sector, skilled workforce, improved infrastructure development, political reforms, and strategic geography offer much reason for a positive outlook.

Exports
In 2016 Kenya exported $4.7B, making it the 107th largest export economy in the world. The top exports of Kenya are Tea ($1.09B), Cut Flowers ($673M), Coffee ($219M), Legumes ($139M) and Titanium Ore ($106M), using the 1992 revision of the HS (Harmonized System) classification. 

The top export destinations of Kenya are the United States ($524M), the Netherlands ($467M), Uganda ($441M), Pakistan ($394M) and the United Kingdom ($386M).

Imports
In 2016 Kenya imported $15.8B, making it the 79th largest importer in the world. During the last five years the imports of Kenya have increased at an annualized rate of 5.2%, from $12.2B in 2011 to $15.8B in 2016. The most recent imports are led by Refined Petroleum which represent 8.05% of the total imports of Kenya, followed by Packaged Medicaments, which account for 3.13%.

Its top imports are Refined Petroleum ($1.28B), Packaged Medicaments ($495M), Cars ($442M), Delivery Trucks ($278M) and Telephones ($271M).

The top import origins are China ($5.59B), India ($2.46B), Japan ($711M), the United Arab Emirates ($628M) and South Africa ($557M).

Comparative advantages
The East African market has one of the highest financial inclusion rates in the developing world, and a strong and diversified private sector. Kenya is also seen as a safe haven for assets in the region, with significant inflows from countries such as Somalia and South Sudan a contributing factor to the country’s overall balance sheet.

The Kenya startup ecosystem is often ranked amongst the best in Africa, alongside South Africa, Nigeria and Ghana.

Kenya’s startup ecosystem has been the benefactor of a series of successes where the government has provided access to data, investments in infrastructure and political reforms which make the region more appealing to investors. The presence of international research labs has also helped to make Kenya a more attractive destination for talent and investors alike.

The rapid penetration of mobile phone connectivity has brought with it access to information, and thus increased maturity in customer needs and refinement of customer tastes. The middle class are not only technologically aware but they love to move with technology trends. This has led to customer pressure to innovate around service delivery which has led to many businesses being unable to keep up with these customer needs.

As a result, there are a lot of gaps that startups aim to bridge with clever innovations, making customers in some captive markets ready to test and trial these solutions. This, coupled with the fact that there is a lot of fragmented service delivery in many industries, makes the startup ecosystem very vibrant.

Kenyan startups raised a total of US$32.8 million in 2017, according to the most recent African Tech Startups Funding Report, the third largest amount raised by any one country on the continent. 

Kenya has and continues to play a pivotal role for the development of the broader East African region. Challenges such as poverty, inequality, governance, climate change, low investment and low firm productivity will be major hurdles for Kenya and the broader region for the years to come. Its growing youthful population, dynamic private sector, skilled workforce, improved infrastructure development, political reforms, and strategic geography offer much reason for a positive outlook.

In the long-term, adoption of prudent macroeconomic policies will help safeguard Kenya’s robust economic performance. This includes implementation of fiscal and monetary prudence and lowering deficit down to 4.3% by FY19/20 as per the Medium Term Fiscal Framework. The fiscal consolidation needs to avoid compromising public investments in critical infrastructure key to unlocking the economy’s productive capacity.

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What can SEA Invest do for you?

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

Connecting minds and missions for exponential value creation. Connecting minds and missions for exponential value. 

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© 2018 SEA Tech. All rights reserved.

© 2018 SEA Tech. All rights reserved.

    SEA is an L3C that builds industry-specific social enterprise accelerators to scale the impact of innovative market-based solutions and generate deal flow for impact-oriented investors.

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