Opportunity
The manufacturing sector makes up approximately 10% of Kenya’s GDP. Though small, this sector has the capacity to grow on the back of various initiatives being undertaken by the government through the Industrialization Transformation Program and Vision 2030. Through increasing access to electricity, better infrastructure, an increasingly skilled labor force and the country’s strategic location, making it a trading hub for East and Central Africa with the second highest trade ranking in East Africa.
Strategy
iJenga seeks to maximize on the growing industrial sector by developing high quality industrial parks in key locations. One such project in our portfolio is the Prabhaki Industrial Park situated in Baba Dogo; a region that has experienced rapid industrial growth given its accessibility to water, electricity and a good road network.
Opportunity
Healthcare investment in Africa is expected to record rapid growth fueled by a growing population, increased urbanization and the large gap between the recommended and current level of healthcare expenditure. The IFC estimates that $25b to 30b investment will be needed by 2022 for hospitals, clinics and distribution warehouses.
Strategy
iJenga seeks to provide value to the healthcare infrastructure space. iJenga has partnered with Excelsior Group, a premier healthcare advisory firm, to launch an East Africa Healthcare Real Estate Fund focused on quality hospital and retirement assets. iJenga is involved in this sector with the aim of delivering projects that not only make profit but also impact the community.
Opportunity
The UN Habitat estimates that 40,000 people move to cities in Africa on a daily basis. The effect of increased urbanization has been an increase in consumption expenditure and demand for various types of goods and services including housing. The African Development Bank has estimated an annual increase in demand for housing in Kenya by 206,000 units, of which 82,000 homes are required in urban areas. The World Bank estimates an accumulated housing deficit of 2 million units in Kenya.
Majority of the gap in housing falls in the low income market; nearly 61% of the urban households live in slums. The shortfall of housing in the low income segment can be attributed to a limited supply, given the lack of cost effective housing and limited access to finance by potential home owners.
Strategy
iJenga Affordable Housing is an integrated real estate development company. It was launched with the goal of building over 15,000 quality affordable housing units in urban locations in key cities across Kenya and East Africa in the next 15 years. In addition, AfHco aims to work with banks to develop innovative mortgage products that are cost effective, accessible to middle and low income households and developer friendly.
The company is a joint venture between an experienced development manager, architect, engineer and contractor that collectively have over 85 years of experience building 10.4m SQFT of real estate in East Africa.
Opportunity
The hospitality sector has proven to be resilient amidst challenges in the Kenya economy, recording a growth of 17.8% in 2016. The sector is expected to expand further given the growth of domestic and conference tourism, as well as increased marketing efforts by tourism industry players and a growing middle class population.
Strategy
To position ourselves in this sector, iJenga seeks to partner with hotel operators in order to provide high quality buildings. iJenga aims to purchase existing hospitality assets, lease them, and build new assets for expansion.