Youth entrepreneurship is an integral aspect of a community’s economic development; this is significant in decreasing unemployment rates as youth are twice as likely to be out of a job. Entrepreneurship and business development are growing in the youth demographic with several positive benefits, including innovation, increased employment rates, and increasing productivity. Kenya Climate Ventures Limited supports growing sustainable businesses while focusing on youth as a necessary investment process. Initial support through financial collaborations is the first step, but sustained growth, job opportunities, and the longevity of a business are what KCV hopes for. One of the critical factors in these goals is having youth working in our clients’ organizations to continue productivity and growth in the future.
In 2021, KCV invested in several sustainable organizations that created and sustained 576 jobs for youth. For example, 129 jobs in Exotic EPZ limited, 86 in Vuma Biofuels, 77 in Acacia Innovations Limited, and 106 in Hydroponics Africa Limited. These new job opportunities for youth aid their livelihood and support our client organizations.
Vuma Biofuels is a youth-owned organization currently in collaboration with KCV. Currently, their performance is in consistent growth, starting from revenue of 3.6 million US dollars in 2019 and growing to 5.9 million US dollars. The predicted growth and sales of the company are expected to be 20.5 million US dollars and 148 million US dollars in 2021 and 2022 respectively.
In total, KCV has invested in 50% of youth-led businesses in the past year. Investing in youth has benefitted households and livelihoods and to a tremendous degree, positively impacting the companies that have opened job opportunities to the youth demographic. For example, after growing their youth employment, Rafode Limited has increased its net benefit per household to KES 6,057,843. Similarly, Hydroponics Africa Limited has a net benefit per household of KES 1,769,537,658, with their company having a value benefit of KES 319,792,877 due to the 106 jobs provided to youth.
Our investment analysis of the past year made it significant to see the integral part youth play in growth and productivity within our clients. As a result, we will continue to prioritize their opportunities within the sustainability sector.