Stakeholders decry lack of access to finance for blue economy start-ups

Slovakia ambassador to Kenya Maros Mitrik, Sote Hub director David Ogiga and EU ambassador to Kenya Henriette Geiger at the Blue Economy Summit in Mombasa on Thursday / BRIAN OTIENO

Access to finance is the biggest challenge that affects start-ups in the blue economy sector because investments are considered high-risk ventures, a summit has heard.

 Stakeholders in the sector are now mulling over the creation of a fund that will sustainably finance start-ups in the blue economy.

 “A lot of enterprises have a challenge accessing capital. How do we bridge that? That is why we are discussing the possibility of creating a new fund,” Sote Hub director David Ogiga said on Thursday.

 He spoke during the fourth Blue Economy Investment Summit in Mombasa which has attracted over 600 delegates from different parts of the world.

 The summit is a platform where all the stakeholders, including both government and private sector players, engage.

 EU ambassador to Kenya Henriette Geiger said a lot of investment is needed in the blue economy.

 She noted that the 25-million euros (about Sh3.8 billion) Go Blue project active in Kenya has given birth to over 600 enterprises, with many having good turnover and profits.

 However, she noted that the key challenge to start-ups is access to finance.

 “There is plenty of support for start-ups but the finance is a problem. So, how do we get a sustainable flow to young enterprises that are also considered risky.

 “We learn that in the blue economy, investments are considered as risky. We need to figure out how this can be de-risked so there can be a sustainable flow of investment going into the blue economy,” Geiger said.

 The EU ambassador said donors can only stimulate a start.

 “But if there is no sustainability and profit created we cannot maintain it in the long run,” Geiger said, adding that this is the key question for the coastal counties.

 Mombasa Governor Abdulswamad Nassir said they will soon be announcing a programme that has been born out of a report from the EU on how youth can benefit from not polluting the ocean.

 “We are hoping that our county assembly will pass our Stawisha Bill soon enough so we can finance.

 “It’s one thing to wait for donor partners to come on board but the county government needs to equally finance its own BMUs and other stakeholders as well,” Nassir said.

 The governor said fish consumption in Mombasa and in Kenya is extremely low in comparison to other jurisdictions.

 He said Italy and Tanzania consume more fish than Kenya, despite Kenya having bigger ocean area.

 He linked it to cultural norms.

 Slavakia ambassador to Kenya Maros Mitrik said the blue economy is not only about the ocean but all the other water sources as well.

 “It is also interconnected with other sectors,” Mitrik said.

 He said there are many companies in Slovakia that have expertise that can be used in Kenya and vice versa.

INSTANT ANALYSIS

Investment in ocean health is limited, but the concept is gaining traction. Private investment has been slow to reach the blue economy, which is defined by the World Bank as the sustainable use of ocean resources for economic growth, improved livelihoods and job creation while preserving the health of the ocean ecosystems.