The path to robust data management remains an ongoing journey, though there is growing recognition among African investment firms that the time for transformation has arrived, writes Amit Bharakda, Sales Director, Eagle Investment Systems, a BNY Mellon Company
Africa’s funds industry may not have the scale or scope of those in North America or Europe (yet). But the markets are dynamic and evolving rapidly. To keep pace, asset managers will have to evolve too. And one key area of focus must be the efficiency and sophistication of their operational infrastructures.
The youngest of three daughters Refilwe Mekwa was born and raised in a small village in Limpopo by her single parent mother, a teacher at a government school and someone who naturally values education and the benefits it brings to people’s lives. Refilwe’s mother made many personal sacrifices so that she could send her daughter to an affordable private school that provided high quality education.
Demographics are shaping the investment attractiveness of Africa’s hotel sector, writes Mthuli Ncube, Head of Research, Quantum Global Group
To reach our potential as a Continent we need unprecedented innovation and investment; core to which is the ICT sector and access to affordable, reliable broadband services. The developmental and economic benefits of internet access to economies and especially developing economies is well documented. Undoubtedly, internet access is a critical catalyst to bridging the gap on some of the social needs of the Continent be it in banking, education, government services, entertainment, health etc.
A giraffe on the African Savannah with the tall buildings of a city on the horizon is often the picture many people think of when imagining Africa. They may not know it but the scene is from the Nairobi National Park, a park on the outskirts of Nairobi, Kenya’s capital city. The Kenya Wildlife services on their website call it “The Worlds Wildlife Capital”. It’s a place I had for many years refused to go to, I was happy to go to Kenya’s coast or its Maasai Mara game reserve but I thought that a game reserve so close to the city was somehow not authentic. Till one year I was persuaded to visit and realised that it’s very authentic, a great place and very convenient being so close to the city. For some of the wildlife such as the lions, sometimes a bit too convenient as they can sometimes get out of the reserve and into the city with disastrous results both for the people living in the suburbs close to the reserve and for the lions.
After registering the worst decline in over two decades, economic growth in Africa is showing signs of rebounding, with the continent’s aggregate growth expected to rise to 3.2% in 2018 and 3.5% in 2019. However, as was recently highlighted by the World Bank following their analysis of the state of African economies, improved infrastructure is a key requirement for stimulating this necessary growth. Africa’s critical requirement for core infrastructure, coupled with the increased development of private investment programmes, is driving a strong pipeline of opportunities in infrastructure investment.
Central banks in the developed world are contemplating an end to their dalliances with quantitative easing. Crucially, the US Federal Reserve announced its intention to commence balance sheet normalisation by ceasing to reinvest maturing principal of its bloated holdings of US Treasury securities and mortgage backed securities. Currently, the Fed’s balance sheet is 25% of US GDP. Normalisation will, therefore, require many years, but there will be important implications for the international cost of capital.
Vakayi Capital has recently invested in Homelux Property Development, making its first investment since its launch. The firm is the country’s only small and medium enterprise (SME) focused impact investor. It is uniquely positioned in Zimbabwe to tap into investment opportunities in businesses with proven business models, strong growth prospects and the potential to significantly create jobs and impact the lives of low-income people. Africa Global Funds speaks with Chai Musoni, Partner & CEO at Vakayi Capital, to learn more.
Most Africa and frontier funds have a very limited part of their portfolio invested in Ghana and for emerging markets funds Ghana is apparently a no-go area. This is understandable as no or very few Ghana-listed stocks meet the minimum liquidity thresholds of these funds. And with hindsight ignoring Ghana has worked well for frontier investors, especially in the 2014-2016 period. In 2017, Ghana has performed very well boosted by optimism regarding the new president and a normalization of interest rates. We believe it can run further as lower interest rates make equities more attractive for local investors. In the long run there could also be a rerating when more international investors buy into Ghana, but it is difficult to predict when that would happen.
Walk into any conference involving emerging or frontier markets, and the subject of impact is on everyone’s mind. While some organizations have engaged in this type investing for decades, impact investing as a formal discipline developed only over the past 10-15 years. The concept itself is simple: investing into companies, organizations, and funds with the intention to generate financial returns as well as measurable social or environmental impact.
By 2050, the world’s population will exceed 9 billion, and we’ll need to be producing at least 60% more food than we are today. As farmers the world over face increasing environmental threats, where will this additional food come from?
Africa Global Funds (AGF) catches up with Vincent Destieu, Deal Principal, Phatisa, to discuss new office in Abidjan and trends in agri-food in sub-Saharan Africa
In March, Mediterrania Capital Partners, a private equity firm focusing on growth investments for companies in North African and Sub-Saharan countries, announced plans to raise €250m for its third fund, Mediterrania Capital III (MC III). AGF speaks with Albert Alsina, CEO and Managing Partner, on the progress and investment strategy.