ESBC News

It is certainly more fun to be part of an economy that is going to take off, as opposed to drop off

British expat Alex Andrewes moved to Kenya in 1994 and while attempting to set up one business realised the potential for another.

The initial idea was to start an interactive media services company in Nairobi but he struggled to find a fully-serviced office with the necessary technology and meeting space.

He realised there was a niche in the market and, confident of east Africa’s business potential, opened 14 office units at the Eden Square building in Nairobi’s Westlands district in 2006.

ESBC now has over 180 office units in four different centres and plans are under way for the opening of more offices in Uganda and Tanzania.

For the mainly expat businesses, consultancy firms, banks and NGOs that use his premises, all they need bring is a computer to start work.

“A lot of companies wanted to test the waters before committing to business out here and were immediately put off by long minimum lease requirements and ill-equipped offices.

“What we offer our clients is the convenience of not having to worry about water, electricity, security and other administrative aspects. This provides them with more time to concentrate on their businesses.”

It took three months to secure his first client, but then things started to snowball.

“The more clients we took on, the more meetings they had, which meant new prospective clients were constantly arriving, looking around and deciding that they too wanted something similar,” Mr Andrewes said.

While there is a small fear that the global downturn will eventually reach east Africa, growth for next year is estimated to hit 5.5 per cent.

He added: “It is certainly more fun to be part of an economy that is about to take off, as opposed to drop off. You can see it changing in front of your eyes and there are a mass of opportunities and niches to be filled. Providing you understand the market, don’t underestimate the Kenyans and bring something of value to the area, your business can work.”

Corruption is the biggest sore point when it comes to business in Africa, combined with a weak legal system that offers little justice for individuals who have been ripped off by unscrupulous business partners.

“It is imperative that you know who you are dealing with and you trust your partner completely because if things go wrong, action through the courts can take years and, as a result, people are more likely to run off with your money if they know there is little recourse through the courts,” he said.