Insights

Capital Raising and Project Finance Investment Company in Mombasa Kenya – Our Approach to Raising Capital for Large-Scale Development Projects

November 22, 20248 Minutes
Project Finance

Buildafrique Group is a premier capital raising, project finance, and investment company in Mombasa Kenya, with a specialty portfolio focused on affordable housing, real estate, healthcare and hospitals, hospitality and hotels, energy, infrastructure, and social impact investment projects. We specialize in structuring capital, securing funding through a range of avenues—including debt, equity, and alternative financing—and offering investment advisory services tailored to each project’s unique needs and objectives to turn visions into viable, successful projects with long-term investment value.

Kenya’s infrastructure landscape is evolving rapidly, with Mombasa playing a central role in its growth. Large-scale development projects, especially in sectors like real estate, energy, and infrastructure, require significant financial backing to succeed. At Buildafrique, we have refined an approach to capital raising and project finance tailored to the unique challenges and opportunities in Mombasa and beyond. This article outlines our approach to raising capital for large-scale development projects, offering insights into how businesses can secure the necessary financing for sustainable growth.

Understanding Capital Raising in Mombasa’s Development Context

Mombasa, a key commercial hub in Kenya, attracts diverse development projects that demand robust financial structures. The primary challenge many investors face is navigating the complexity of securing capital from both local and international sources. Development projects in sectors like real estate, healthcare, and energy often require blended financing models, combining equity, debt, and alternative financing. Additionally, factors such as regulatory requirements, market volatility, and risk assessments impact the success of raising capital.

At Buildafrique, we specialize in overcoming these barriers through a structured and methodical approach, leveraging Kenya’s legal framework and our network of financiers to ensure viable financing solutions for every stage of the development project.

Our Capital Raising and Project Finance Process

Our capital raising and project finance process entails consulting and advisory, investor relations, and transaction and legal structuring services to provide a comprehensive approach to secure the funding needed for project success, as below:

1. Consulting and Advisory Phase:

The first step in securing project finance is thorough preparation. We begin by conducting comprehensive feasibility studies, market research, and financial modeling. These steps ensure that each development project has a solid foundation and is attractive to investors. A well-prepared business case is crucial in securing financing from institutional lenders, equity investors, and development finance institutions.

Our team assists developers in structuring financial models that balance equity, debt, and other financing options. By thoroughly understanding the project’s potential and the risks involved, we help structure a viable financial plan that can attract both local and international investors.

2. Investor Relations and Strategic Partnerships:

Once a development project is financially structured, the next step is engaging with potential investors. We identify and connect with strategic financiers, including equity investors, institutional lenders, and private capital funds. We also facilitate partnerships with development finance institutions (DFIs), which are committed to closing Africa’s infrastructure funding gap by providing capital for medium to large-scale development projects.

In this phase, communication is key. We work closely with stakeholders to present a bankable business case and ensure alignment with investor expectations regarding returns, timelines, and risk management.

3. Transaction and Legal Structuring:

After identifying potential financiers, we move into deal structuring, where legal frameworks and financial instruments are finalized. Buildafrique plays a crucial role in advising on legal matters such as land acquisition, mortgages, charges, and securities. We ensure that the development project’s assets are legally secured to protect investor interests and create a seamless transition from financing to project execution.

Additionally, we provide advisory services during due diligence, helping clients negotiate term sheets and structure financing deals that reflect fair market terms. Whether dealing with joint ventures, presale finance, or debt finance, we ensure transparency and mitigate risks to build investor confidence.

Types of Financing Solutions We Provide

In today’s competitive landscape, no single financing solution fits all development projects. Buildafrique offers a variety of capital raising and project financing options tailored to the specific needs of each development project:

  • Equity Investors Finance: Attracting private equity investment from both local and international sources.
  • Debt Finance and Institutional Lenders: Partnering with banks and financial institutions to offer low-interest loans.
  • Collective Investment Fund/Scheme Finance: Pooling resources from multiple investors to finance large-scale development projects.
  • Contractor Debt and Equity Finance: Providing equity or debt support to contractors involved in major development projects.
  • Joint Venture Equity Finance: Partnering with other developers or investors to share equity in high-value development projects.

Navigating the Challenges of Capital-Raising

Securing financing for large-scale development projects in Mombasa and Kenya at large is not without its challenges. Regulatory hurdles, fluctuating market conditions, and political uncertainties can complicate the process. At Buildafrique, we help developers mitigate these risks by staying ahead of regulatory changes, conducting thorough market analyses, and building financial structures that remain resilient in changing economic environments.

One significant advantage of working with us is our deep understanding of Kenya’s public-private partnership frameworks. PPPs are essential in sectors like infrastructure and energy, where the government often plays a critical role. By engaging with both public and private sector stakeholders, we ensure the smooth flow of capital and facilitate timely project completion.

Raising capital for large-scale development projects in Mombasa requires a comprehensive strategy that aligns development project objectives with investor expectations. At Buildafrique, we offer end-to-end solutions that cover everything from project feasibility to legal structuring, ensuring that our clients secure the funding they need for successful project execution. By leveraging our extensive network of financiers and strategic partners, we bridge the gap between investment potential and financial reality, empowering developers to bring their visions to life.

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Capital Raising, Project Finance & Real Estate Finance