Problem

Many African enterprises rely on investment capital from developed countries to build their businesses. To avoid losses caused by currency volatility, most international investors require enterprises to bear currency risk, through FX hedging or other means. These entrepreneurs not only have to successfully run their core business but also incur currency risks that are outside their control.

Approach

KSI seeks to reduce negative effects of currency risk by endorsing:

International lenders to invest in local currency
Expansion of local capital investing
Availability of catalytic capital to mitigate losses
Systemic solution to reduce FX risk premium for developing country currencies