Innovators challenged to focus on other sectors besides technology and agriculture

business

The rapidly growing and urbanising population also presents a largely untapped market for sustainable energy solutions.

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Investors have been urged to focus on emerging sectors such as green economy and renewable energy to boost their returns. This was one of the key messages relayed to start-ups and innovators during the 8th edition of the E4Impact business innovation challenge, held at the Tangaza University College last week.

The innovation challenge saw eleven start-ups from different sectors of the economy compete against each other for cash, among other prices. Three start-ups got to walk away with cash prizes of Sh250, 000, Sh100, 000 and Sh50, 000.

“In the top six, three innovations were picked by the judges from the green energy category, which shows that investors could be looking to tap into other sectors, not just the normal agriculture and technology as has been the situation,” noted Wilken Group Kenya Managing Director, Andrew Lopkoiyit.

According to the 2021 Annual African Private Capital Activity Report, the financial sector drew the largest volume (23 percent) of venture capital in Kenya in the year 2021, attributed to the rise in fintech.

This was followed by consumer discretionary (18 percent) and information technology (15 percent). The rapid rise in fintech was attributed to the onset of the Covid-19 pandemic, during which time e-commerce solutions were urgently needed.

Fintech start-ups

But as more fintech start-ups came up, offering similar services and therefore targeting the same customers, investors began looking towards other start-ups in sectors such as education, logistics and green energy that had untapped potential.

Indeed, in Kenya, rising energy prices and unreliable power supply that hamper production have forced businesses on to rethink the ways they consume fossil fuels and other natural resources. The rapidly growing and urbanising population also presents a largely untapped market for sustainable energy solutions.

“A shift to sustainable, green energy solutions in Kenya presents an enormous investment opportunity. Businesses as well as governments are expected to invest heavily in the coming years to introduce cleaner, more efficient energy solutions,” noted Mr. Lopkoiyit.

He noted that innovators need to take the initiative and reach out to investors for funding. To achieve this, they could start by participating in competitions such as the E4Impact innovation challenge, as they never know whom they might run into while networking.

Participants of the E4Impact innovation challenge were divided into six clusters, namely agribusiness, health, education and training, green economy and renewable energy, business services, ICT and mobile technology.

Winners were selected based on the ability of their solutions to address key issues currently affecting society, their profitability and sustainability. They are expected to use the cash prizes to implement and scale their business ideas.

One of the winning start-ups, Dream Doers Investments, was recognised for using Azolla plants to produce eco-friendly livestock feeds. The start-up also produces bio-fertilizers.

Another, Toto Sci, was recognised for using locally available materials to produce USB cables locally. The company was also recognised for its eco-friendly business practices as it employs recycled plastics to produce the USB casings.

Smokeless fuel

The other start-up, Gordon’s Agricultural Organisation, was recognised for production of smokeless fuel by using Shea Nut shells to produce briquettes, a cheaper and safer alternative to wood or charcoal.

The E4Impact innovation challenge was initiated by the Catholic University of Milan and the Tangaza University College. Though held annually, it has not been convened for the past two years due to the Covid-19 pandemic.

The program is part of the larger Tangaza University MBA-Global Business and Sustainability in Social Entrepreneurship program, which also enables entrepreneurs to launch successful companies by taking them through business incubation processes.

Besides access to funding and networking opportunities, participants at the challenge are also able to draw feedback from judges to understand challenges and opportunities which they may encounter but had not foreseen. They also learn in a direct way how to approach investors and what investors expect from an entrepreneur.