East Africa's security market $88.5 million surge by 2024

The private security sector in East Africa is experiencing a significant surge, with a projected growth of $88.5 million by 2024. Uganda and Tanzania are at the forefront of this upward trend, with active users expected to exceed 350,000 in Uganda and 460,000 in Tanzania by 2028. To gain deeper insights into this flourishing sector, CNBC Africa recently interviewed Jackson Mbuthia, the Chief Commercial Officer of SGA Group, a key player in the private security industry in Kenya, Uganda, and Tanzania. In the interview, Mbuthia highlighted the potential for growth in the sector, especially in Kenya where SGA operates, projecting a revenue increase of $12 million by 2026. This growth signifies ample opportunities for investment and expansion in the security market. Security companies in East Africa primarily finance their growth through cash flow or commercial bank loans. However, with the evolving landscape of the private security sector, there is a growing need for venture capitalists and private equity firms to provide funding for startups and existing companies looking to diversify their services. Affordable security solutions are a crucial aspect of ensuring broader accessibility to private security services. While private security services are generally not cheap, some companies have implemented innovative models such as security-as-a-service to make their offerings more affordable. By shouldering the cost of equipment, these companies are able to provide security solutions to businesses and individuals without the burden of upfront expenses. The link between advanced security measures and insurance premiums is also crucial. With a more secure environment, there is a potential for lower insurance premiums as the risk of theft or intrusion decreases. Additionally, the employment landscape in the security sector is set to expand significantly, with projections of over 350,000 jobs in Uganda and 460,000 jobs in Tanzania. While traditional roles in private security involved security officers and guards, the sector is witnessing a shift towards technology-driven solutions, necessitating skilled technicians and analysts. Monitored control rooms are also gaining prominence, creating further employment opportunities in the industry. Regulatory frameworks and policies play a vital role in shaping the security sector and integrating data-driven solutions. In Kenya, efforts have been made to regulate the private security sector since 2016, with the establishment of a dedicated regulator and standardized training programs for security officers. However, in Uganda and Tanzania, regulatory frameworks are still in nascent stages, leading to variability in service quality and delivery. Overall, the thriving security market in East Africa presents immense opportunities for growth, innovation, and job creation, contingent upon robust regulatory frameworks and strategic investment.