SAVCA 2017 Case Study Compendium

Africa Global Funds Magazine Archive

AGF June 2017 Issue

Africa Global Funds Magazine: May 2017 issue

In this month’s issue of AGF we focus on investing in African stocks. Philippe Koch of IPRO Fund Management says that some investors into frontier equity markets focus more on the top-down picture, while others have a “pure” bottom-up investment philosophy. “I believe that enduring success for a frontier equity investor results from an astute combination of both approaches, with an emphasis on fundamental bottom-up factors.” In addition, we hear from Paul Clark of Ashburton Investment on African equity markets excluding South Africa. Read on to find out why the current environment is particularly favourable for equity investors. Of course, we couldn’t skip South Africa. Chris Botha of Imara Asset Management shares his views on the most mature stock market on the continent. He says that that even though the country has been downgraded to “Junk Status”, appetite for emerging markets has in fact been increasing for a while due to the high yields on offer. This month’s edition also covers a number of thought pieces. Abou Shoka, a Cairo-based lawyer, writes about Egypt investment laws and what they entail in practical terms. Moreover, Ngaa Gumbo of Atria Africa shares his thoughts on opportunities in African agriculture. Finally, Jonathan Hosie of Mayer Brown, poses the question: How to avoid the pitfalls of funding projects in Africa?

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AGF May 2017 Issue

Africa Global Funds Magazine: May 2017 issue

In this month’s issue we cover a wide range of topics from infrastructure to real estate and equities. Experts agree that there are investment opportunities across the continent in various asset classes. Harry Wulfsohn of Imara Holdings and Stuart Theobald say that the 2015 commodity slump and subsequent weaknesses in various domestic currencies have created a window of relatively cheap African assets. For portfolio investors, African exchanges, particularly outside South Africa, suit stock-pickers because of relatively low levels of passive holdings and research. On the infrastructure front, Johan Steyn of Prescient Investment Management writes how Africa is working on solving its electricity deficit and why it’s important for African countries to continue to set targets for renewable energy developments. Meanwhile, Dmitry Fotiyev and Katya Kucheriavenko of Brightmore Capital outline real estate opportunities in West Africa. They focus on the residential markets of Abidjan and Dakar. Staying in West Africa, Teodoro de Jesus Xavier Poulso of the Fundo Activo de Capital de Risco Angolano, an Angolan venture capital fund, says that he is seeing the realization of major investments in infrastructure that are critical for the development of business environment in Angola. In addition, Bruce McGlogan of Maitland, stresses that investments by private equity funds into companies hold great benefits besides the mere cash injection to develop business. Finally, we speak with AfricInvest’s Khaled Ben Jilani, about fundraising for its new financial sector private equity fund, investment strategy and opportunities.

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AGF April 2017 Issue

Africa Global Funds Magazine: April 2017 issue

At the end of March the political chaos in South Africa has made the economic future uncertain. The country’s credit rating has been downgraded to junk status by S&P and Fitch Ratings following Jacob Zuma's cabinet reshuffle. Meanwhile, Moody’s Investors Service has placed the Baa2 long-term issuer and senior unsecured bond ratings of the government of South Africa on review for downgrade. Read on to find the market’s reaction and what the downgrade means for investors. In this month’s issue we also focus on another troubled economy – Mozambique. The country, recently one of the fast growing economy’s in Africa with over 7.3% annual GDP, has been severely affected by a number of global, economic and political aspects. We speak with real estate fund managers about their investment experience and future prospects. Is it a good time to enter the market? And what are the catalysts that are need to re-correct the market moving forward?. In addition, Zaida Kathrada, Director, Norton Rose Fulbright, discusses land rights in Mozambique. She writes that in terms of the legal system, land and its associated resources are the property of the State and cannot be sold, mortgaged or alienated in any way. On the fundraising front, we catch up with Richard Rose, Fund Head at Edge Growth. We learn about the firm, South African SMEs and new fund in the works. He says that in South Africa the private and the public sectors are recognising the need for funding in the early stage space. Finally, we learn about Sigma Pensions, the fifth largest pension fund administrator (PFA) in Nigeria. Keep reading to find what Emenike Dave Uduanu, Managing Director and CEO, has to say on the pensions industry in Nigeria and investment opportunities for pension funds.

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AGF March 2017 Issue

Africa Global Funds Magazine: March 2017 issue

In this month’s edition we catch up with Will Poole, Co-Founder and Managing Partner of Capria Ventures, a global financial services innovator investing in the missing middle finance opportunity in emerging markets. The firm has recently added four new funds to its Network and has started its global search for another group of the best impact investment management teams to invest in. Read on to find more about the company’s take on impact investing and how fund managers can benefit from joining Capria. Our market feature focuses on Senegal and investment opportunities for private equity funds. Dmitry Fotiyev of Brightmore Capital, an investment firm active in the country, shares his views on why Senegal is an attractive investment target for early stage private equity investors. On the private equity front, Peter van As of Phatisa discusses the changing face of portfolio management. Meanwhile, we also learn about tumbling blocks and complexities faced by private equity managers working towards an exit in Africa. In this month’s issue, Thomas Venon of Eighteen East Capital unveils the Impact Investment Trust PLC, an investment company offering exposure to a portfolio of funds investing for impact. The firm with financial support from the Swiss government and the British government is working towards the IPO on the London Stock Exchange. Finally, Kelly Pretorius of Bowmans discusses share buy-back transactions and why they have become a very common mechanism for exiting an investment in a South African companies.

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AGF February 2017 Issue

Africa Global Funds Magazine: February 2017 issue

In this month’s issue of AGF we focus on development finance institutions (DFIs) and their role in the African private equity space. We learn that DFI capital will likely remain important for helping to support new and growing fund managers in Africa for the foreseeable future. Read on to find more about opportunities and benefits for PE funds as well as DFI’s nvestment objectives for the next decade. On the private equity front, we also catch up with Ed Stumpf and Dhesen Moodley of Investment African Infrastructure Investment Managers to learn about the largest private equity exit for toll road infrastructure to date. Last year the fund manager sold investments in three privately-concessioned toll roads in Southern Africa. Find more about the infrastructure exits track record and learn how to achieve a successful exit in the infrastructure PE space. Meanwhile, Albert Alsina of Mediterrania Capital Partners shares his views on the importance of value creation. Because of the unique value creation process adopted by his firm, their portfolio companies are growing far beyond the markets where they are playing and are setting the right foundation that will allow them to keep performing in the future years. In this month’s edition, we also speak with Jonathan Kruger of Africa Merchant Capital (AMC) to learn more about the company’s Sub-Sahara Fund. Finally, Doye Balogun of Mayer Brown discusses the AfDB Borrowing Programme for this year and his expectations on what can be achieved.

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AGF January 2017 Issue

Africa Global Funds Magazine: January 2017 issue

Happy New Year! As 2017 kicks off, we caught up with experts to discuss opportunities in Africa for this year. Despite challenges experienced in previous years, one should not forget that the African region remains one the fastest growing regions in the world. Which factors will drive performance this year? Which markets and sectors look promising? Read on to find more from our panelists. In this month’s issue we also looked at things that shaped the markets in 2016. Oliver Hoffmann of 27Four Investment Managers writes that it has now been two and a half years since the US Dollar began its +25% appreciation and the underperformance of African equity markets feels as if it has no end. Read on to find more about FX challenges, lessons and observations. On the private equity front, Sally Hutton of Webber Wentzel provided Private Equity and Venture Capital Dealmakers Review of 2016. Statistics show a significant year-on-year increase in deal flow. Find out whether high level of activity is set to continue. In addition, experts from Linklaters and Webber Wentzel argue that Africa is gaining prominence as a target destination for a more diverse group of investors. Recently, more traditional fund investors seem to have an increased appetite for investment in Africa-focused funds. Learn what it means for fund managers and what challenges they are experiencing. Finally, find more about new deals from Lucid Ventures and why the firm is focusing on food and hospitality sectors in South Africa.

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AGF December 2016 Issue

Africa Global Funds Magazine: December 2016 issue

In this month’s issue, we learn about Active Share, a tool that identifies managers that are pursuing benchmark-agnostic strategies. According to Guy Antoine of Sustainable Capital, there is a positive correlation between high Active Share and investment performance. Read on to find how fund managers can apply this tool to their strategies. This month’s edition also looks at collateral management. Kelly Robinson of Strate argues that the rapid pace of regulatory change has become daunting, particularly for asset management firms who are grappling with moving implementation time lines and mounting collateral requirements. Learn how to manage your collateral dispute and optimize the collateral you have. Our market feature focuses on Zimbabwe. The necessity of patient investment capital is important, and often ignored, component to successfully investing in the country, according to Rishay Lalla of Atria Africa. “This is key to enable investors to truly realise value in their investment as opposed to merely realising performance gains.” Finally, Graham Sheward of Cim Global Business says that Mauritius has earned an enviable reputation as Africa’s preferred risk-mitigation center, attracting a wide range of funds seeking to understand, navigate and access African growth. As we’re coming towards the end of the year, Africa Global Funds wishes you and your loved ones a very Merry Christmas and a Happy New Year! Thank you for your continuous support and we look forward to working with you on more insightful stories in 2017!

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AGF November 2016 Issue

Africa Global Funds Magazine: November 2016 issue

At the end of October, we gathered in Cape Town for the Gala dinner and celebration of the inaugural Awards for Africa Service Providers. The event attracted a host of industry professionals and was honoring the outstanding efforts and accomplishments of fund service providers covering Africa. Ourfinalists and winners included such respected names as Standard Bank, SS&C Advent, BNY Mellon, RisCura, S&P Dow Jones Indices, Bowmans, Maitland, FBN Quest, FactSet, Prescient Fund Services, Cim Global Business, Trident Fund Services, Morningstar, Exotix Partners, UBS, Eagle Investment Systems, STR Global, Global Credit Ratings, Magna Carta and more. Find out who scooped the trophies on. This month, our analysis focus is beta investing. Zack Bezuidenhoudt of S&P discusses smart beta in South Africa and Nigeria and outlines various approaches to smart beta that can be considered for Africa. He says that it is definitely possible to construct African smart beta indices, but one must be cautious on how one develops those. Another feature covers responsible investing in frontier markets. Sven Richter of Drakens Capital argues that there are no minimum standards that all decent companies can and should conform to. He adds that there certainly are minimum standards but some markets are more evolved and further down the ESG path then others. Finally, Joyce Mbui & Alex Njage of Bowmans discuss Kenyan real estate market and introduction of REITs (real estate investment trusts).

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AGF October 2016 Issue

Africa Global Funds Magazine: October 2016 issue

In this month’s issue we look at fixed income opportunities. Malick Badjie of Silk Invest says that Africa has established itself as an increasingly pervasive investment story and fits the bill for investors seeking new opportunities. African bond markets are attractive because they are hardly represented in any of the benchmarks. Our market feature focuses on Ghana and its economic policy. Sven Richer of Drakens Capital believes, that this West African country is starting to look up despite high criticism of government’ economic policies. On the private equity front we learn about the African Agriculture Fund and how PE can drive African GDP through enhancing farm yields and input. In addition, we learn from David White, Chairman of the Emerging Africa Infrastructure Fund about the fund and its projects. In this month’s edition, Langelihle Mnyandu and Francisco Khoza of Bowmans analyze the impact of the Solvency Assessment and Management (SAM) framework on private investment funds. Meanwhile, David Ross of Viteos discusses shadow accounting and how its outsourcing improves scalability in hedge funds. Finally, Yan Gloukhovski of Zeroflows discusses liquidity search and why a new approach is needed in African markets.

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AGF September 2016 Issue

Africa Global Funds Magazine: September 2016 issue

In this month’s issue of AGF we learn that while Islam is a major religion on the continent, its communities have historically been underserved by banking systems and capital markets. Access to Islamic financial products in Africa has significantly lagged behind other regions, such as the Middle East and South East Asia. Said DeSaque of Desaque Macro Research discusses Sharia-compliant financial activity in SSA, saying that Sharia-compliant products have the potential to impart significant macroeconomic benefits for SSA countries. This edition’s market feature focuses on Egypt. Sébastien Hénin of The National Investor looks at the preliminary loan agreement that was signed between the country and the IMF. He says that if the deal goes through foreign investors will probably allocate money to local financial markets. Meanwhile, Hayden Reinders of Prescient Fund Services discuses hedge fund administration in South Africa. He says that previous more traditional based administrators, risk providers, compliance offers and legal advisors are expected to gain from the announcement of regulated hedge funds. On the private equity front, we speak with Nonnie Wanjihia, Executive Director at the East Africa Venture Capital Association about the private equity environment in East Africa and the role of EAVCA. In addition, Brooks Preston of OPIC shares the US DFI’s investment experience in Kenya key lessons about advancing economic development in emerging markets. Finally, Helen Roberts of BonelliErede, shares her thoughts on healthcare opportunities in Africa. She says that private equity plays a fundamental role in bridging a funding and access gap in healthcare.

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AGF August 2016 Issue

Africa Global Funds Magazine: August 2016 issue

In this month’s issue of AGF we focus on alternative investments. Jaclyn Petrone of Laurium Capital analyses South African hedge fund industry, saying that local fund managers have done an exceptional job in outperforming their global peers. Read on to find why investors should not dismiss Africa for either illiquid or a pure beta play. This month’s market feature focuses on Morocco. Albert Alsina of Mediterrania Capital Partners believes that the country will continue to be a very important geographical area for PE funds investing in the Maghreb region. He says: “There is a strong pipeline of good companies in fundamentally strong sectors operating in markets where competition is relatively low.” On the fund structuring front, we learn about the advantages of structuring through offshore jurisdictions such as the Cayman Islands. Patrick Colegrave of Harneys argues that Cayman is the leading jurisdiction for the domicile of alternative funds. Meanwhile, we also learn that global regulations raise the stakes for African hedge funds. Meredith Moss of Finomial writes that demonstrating adherence to global regulatory standards is essential to compete in and have access to global capital. In addition, while Brexit is still on investors’ minds, Helen Roberts of BonelliErede shares her views on how investors in Emerging Markets in Africa can optimize opportunities and mitigate risks. Finally, in addition to our regular PE activity data on p.22, we provide data on Africa infrastructure-focused fundraising (p.23) as well as the analysis of recent Preqin’s report on infrastructure deals in Africa. According to the findings, 103 transactions have been completed for assets in Africa since 2013, worth an estimated $50bn.

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AGF July 2016 Issue

Africa Global Funds Magazine: July 2016 issue

In June, we were closely monitoring situation in Angola. The country’s finances have been hit hard by the halving of oil prices since mid-2014. The IMF mission chief to Angola, Ricardo Velloso, completed a visit to the country after Angola’s Finance Ministry said it was seeking support to “complement the already steadfast response to the decline in oil prices.” Experts were seeing this as a positive move. We were surprised, however, that the country has given up the idea of requesting financial assistance. Read on to find what it means for the bond market and whether there are still opportunities. The troubled Nigerian economy continues to be a major concern for asset managers and investors. Bolatito Ajibode of Stanbic IBTC says that economic diversification is key to catapult Nigeria into sustainable, balanced long term growth. She looks at agriculture, mining and services, saying that these sectors are key to a more stable and prosperous future in the country. Power generation and other power related infrastructure is the foundation to unlock any countries full economic potential, according to Sean Long of Endeavor Energy. Yet the question remains in many investors’ minds –what does it take to invest in sub-Saharan Africa and realize attractive risk-adjusted returns? Find out what it takes to accelerate investment in power in SSA. In this month’s issue we also speak with David Kitawi Mwakitele of Seriani Asset Managers on the state of the Kenyan pension fund industry. In addition, Giri Girisanthan of Augentius gives a refresher on FATCA and CRS reporting.

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AGF June 2016 Issue

Africa Global Funds Magazine: June 2016 issue

In this month issue of AGF, we focus on venture capital industry in South Africa. The industry is on the rise with a number of new fund managers, an increase in deal flow and in profitable exits, as SAVCA survey shows. In addition, we hear from Justin Stanford, co-Founder and MD of the 4Di Group, about the state of venture capital in South Africa, and the outlook for deal-making and fundraising. On the private equity front, we speak with Emerging Capital Partners’s co-Founder Hurley Doddy, who says that there is no lack of opportunity in Africa and no oversupply of capital. Find out what’s on the books for the Pan-African PE firm this year. On the fundraising front, Barak Fund Management has recently announced the launch of three new investment vehicles to fulfil the needs of their current investors. AGF sits down with Giles Hedley to learn about new funds and opportunities in the trade finance space in Sub-Saharan Africa. If you invest in African stock markets, the BRVM might be a good option. Read what BRVM’s CEO Edoh Kossi Amenounve has to say about performance, strategic plan and why the Exchange is initiating dialogue with US frontier funds. Finally, Rajan Rosick, Head of New Business, Trident Fund Services Mauritius discusses Mauritius Partnerships. He says that although companies are still the dominant form for investment funds located in Mauritius, partnerships can provide a number of advantages.

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AGF May 2016 Issue

Africa Global Funds Magazine: May 2016 issue

In this month’s issue of AGF, we focus on commercial African real estate as well as residential real estate. David Lashbrook of Momentum Global Investment Management argues that with the implementation carefully undertaken by experienced hands-on professionals, investors should be able to benefit from the demand/supply imbalance that has the potential to provide a sustainable source of meaningful real return over the medium term (pp. 12-14). On the residential property, we catch up with Jan van der Merwe of Phatisa’s Pan African Housing Fund to hear about investment opportunities, challenges in the housing space and why ESG matters (pp. 20-21). The subject of our profile feature, Albert Alsina, Founder, CEO & Managing Partner, Mediterrania Capital Partners, tells AGF about the Maghreb region and how the firm has found its sweet spot. “There aren’t many funds nowadays targeting the Maghreb region and, actually, it would be great to see more” (pp. 18-19). We also catch up with Jérémie Ceyrac, Deputy Head of Private Equity Division at Proparco, to hear about Africa investments and allocation to funds. Read why Africa remains a core priority for the French development institution on p.15. In this month’s edition, our focus market is Kenya. Cornelis Vlooswijk of Robeco says it may be only a matter of time before Kenya will become the most traded Sub-Saharan Africa market after South Africa. Find out whether Kenya has become more popular among Africa and frontier investors on pp. 16-17. Last but not least, Jonathan Hosie, Partner in the Construction and Engineering Practice, Mayer Brown, discusses whether China is the only player in the African infrastructure space on p.26. If you like what you are reading, spread the word.

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AGF April 2016 Issue

Africa Global Funds Magazine: April 2016 issue

In this month issue of Africa Global Funds, we list top 30 fund service providers covering the African region. Ranging from fund administrators and technology providers to legal firms, auditors and prime brokers, these companies are at the forefront, helping give shape to the rapidly expanding market and helping funds navigate fast paced and challenging environment. While this guide is drawn solely from our readers’ nominations, in May we’ll be launching our inaugural 2016 AGF Africa Service Providers Awards. We invite all fund service providers to participate. It is FREE to enter and there are 30 categories, all rewarding excellence in African asset servicing. The 2016 winners will be announced at a gala dinner and ceremony on Thursday, October 27, 2016 at The Rotunda, Camps Bay in Cape Town, South Africa. This month, we caught up with Herman Marais of Agri-Vie to learn about EXEO Capital, an Africa-focused private equity partnership between Agri-Vie and STANLIB. Marais says that EXEO Capital will promote new sub-Saharan African private equity funds, starting with the Agri-Vie Fund II. On the private equity front, we also learn that it is likely that African focused private equity funds will continue to be very active deploying their capital especially once current owners adjust their price expectations, whereas 2016 will also be critical for M&A activity in the energy sector. Meanwhile, we also learn about benefits of fund structuring in Mauritius in comparison to the UK. Mauritius is for many the jurisdiction of choice, both for locating fund vehicles and investment holding vehicles. Finally, our market feature covers South Sudan. Said DeSaque of DeSaque Macro Research says that the country’s history has been dominated by warlord politics and has resulted in profound misallocation of government resources, adding that the economic outlook for South Sudan hinges critically on political reconciliation.

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AGF March 2016 Issue

Africa Global Funds Magazine: February 2016 issue

This month, Given Lubinda, the Minister of Agriculture & Livestock in Zambia, announced that the Government is determined to make Zambia the food basket of the region in neighboring countries and contribute significantly to the global food supply chain: “As such, we invite investors in agriculture to call on us to pursue this important agenda.” Very timely, this issue of Africa Global Funds offers an extensive coverage on Zambia and agriculture. In this month’s issue Leon Kotze, Head of Agri Business for Stanbic Bank, examines opportunities in the Zambian agri sector. Meanwhile, Stuart Bradley of Phatisa provides a case study of one of the portfolio companies – Goldenlay, which is the Zambian market leader in table egg production. We also look at a broader picture and provide an analysis on agriculture focused funds. We find that there is a growing interest in this sector with funds finding opportunities across the agricultural value chain. In addition, Sven Richter of Drakens Capital analyzes Zambian stocks, saying that while the economy has to deal with some big issues such as low copper demand and a lack of power the other sectors are driving growth and holding up valuations. In this month’s edition, we also provide a guide to the strongest asset managers covering Africa. Despite challenging macroeconomic environment, growth across the African continent will require continued investment. The AGF Asset Managers Top 40 is the leading guide to the leading fund managers investing in the region. Finally, John Bellew, Head of Private Equity, Bowman Gilfillan Africa Group, shares thoughts and themes from the 2016 SAVCA Conference. The South African Private Equity and Venture Capital Association, held a successful annual conference at Spier Wine Estate, last month.

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AGF February 2016 Issue

Africa Global Funds Magazine: February 2016 issue

In this month’s issue of Africa Global Funds we focus on infrastructure opportunities in Côte d’Ivoire. While not many infrastructure funds are active in the country, there’s room for growth and development. We learn that Côte d'Ivoire's has relatively good prospects for bridging its funding gap and that funds that are partnering with industrial groups will have opportunities in the country. Meanwhile, Steven Loubser, Portfolio Manager at Investec Asset Management, analyses opportunities in the African credit space. He says that credit is an asset class that immunises investors from many of these risks. It provides for decreased forex volatility, thanks to investments being made in US dollars. Therefore credit investments were not as affected by the big swings that local currency assets were susceptible to in the recent past. On the fundraising front, we hear from the Africa’s leading mezzanine debt provider, Vantage Capital, which is in the final stages of closing its third mezzanine fund. Colin Rezek, Managing Partner, tells us about their fundraising success story, the fund structure and appetite for private debt. Finally, we hear from Boshoff Grobler and Shalin Bhagwan of Ashburton Investments about their recent acquisition of boutique Cape Town fixed income asset manager Atlantic Asset Management. The acquisition complements Ashburton Investments’ existing new generation fixed income business by adding to its range of traditional fixed income funds as well as introducing Atlantic's expertise in managing social impact investments.

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AGF January 2016 Issue

Africa Global Funds Magazine: January 2016 issue

As we enter 2016, we catch up with leading industry experts to discuss what this year holds for African markets. We learn that countries like Kenya, Uganda, Rwanda, Tanzania, Cote d’Ivoire and Mozambique will all likely show good growth. We also learn that equities and bonds are both attractive for international investors, as well as private equity. We, at Africa Global Funds, believe that Africa is moving in the right direction, but it certainly takes time for the global investment community to recognise the full potential of the continent. As Nicholas Piquito of African Alliance says: “the relatively underdeveloped and, in many cases, misunderstood nature of the African markets remains a key impediment to large-scale interest on the part of international institutional investors.” We also agree, that patience is a key element to success. Ayo Salami of Duet Group stresses: “It is the ability to endure the boring day-to-day waiting for something to happen; that is the hallmark of a great investor.” In this month’s issue Christopher Elvin, Head of Private Equity Products at Preqin, analyses the African private equity landscape in 2015, saying that Africa-focused fundraising had a strong year in 2015. Meanwhile, Dorothy Kelso of AVCA, looks at Ethiopia’s private equity market, saying that it although it is relatively small by African standards, it has strong macro drivers that signal significant potential for future growth.

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AGF December 2015 Issue

Africa Global Funds Magazine: December 2015 issue

In this month’s issue of Africa Global Funds, we focus on African small and medium enterprises (SMEs),which are key to growth and development in Africa. The challenge faced by most business startups and early-stage ventures in Africa is funding. We speak with Emile Debled, Business Development Director at Paris-based Investisseurs & Partenaires (I&P) about this issue and how I&P is addressing it. According to Gerhard Visagie, Investment Director at Acorn Private Equity, SMEs in Africa have a tremendous difficulty in terms of access to capital and “it’s one of the main challenges that Acorn wants to overcome.” Visagie tells us about Acorn’s maiden fund, focused on SMEs in Southern Africa, which achieved lucrative returns for investors. We also speak with CBO Investment Management’s Bex Nwawudu about their fundraising for a new $150m fund dedicated to investing in the underserviced SME space in West Africa. Our market feature covers Algeria. Jacques Verreynne, Analyst at NKC African Economic says that the country has for many years been on an unsustainable path. It was also a month of SuperReturn, the largest private equity conference on the continent. As the conference was held in Ghana, you can read about my adventures in Accra. Sustainable investing is on the agenda for many investors. James Brice, CEO and founder of EBS Advisory, says that doing good and making profits must be aligned for both to be sustainable. In his analysis feature, he urges to build the skill sets, which are required to engage meaningfully and strategically with flows of capital to show the upside and ensure that “we don’t remain stuck at the compliance level of ESG implementation”. As we’re coming towards the end of 2015, we want to wish you a Merry Christmas and a prosperous New Year! Thank you all for your tremendous support!

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AGF November 2015 Issue

Africa Global Funds Magazine: November 2015 issue

In this month’s issue of Africa Global Funds we feature our annual guide to the most influential, innovative and powerful figures in the private equity industry. Ranging from pan-emerging markets giants to local fund managers, this year’s AGF Private Equity Top 40 list comprises individuals who have been in the forefront of Africa private equity and venture capital investing. This month’s market feature focuses on Tanzania, which is seeing as increasingly popular investment destination for private equity investors. Tanzania boasts one of the most robust deal flows in the East African region, although remains well below the level of activity in Kenya. We learn about investment opportunities in the country as well as risks. To participate in the Africa growth story, most investors have defaulted to a private equity or private direct investment route, blaming the lack of liquid capital markets to otherwise access Africa. While capital markets in Africa and local currency bond markets in particular are admittedly still small, with a relatively lower access to transparent pricing sources and too thinly traded for most international investors, there have been huge strides made in the recent past, according to Abhimanyu Yadav of MCB Capital Markets. We also hear from Andreas Schonning of Global Real Estate Institute, who speaks with Carlo Matta, CEO at Laurus Development Partners about the West African real estate market and how it will look like five years from now. “Alongside Nigeria, Ghana, we will see Ivory Coast, Cameroon and maybe Senegal becoming the target of developers and investors.”

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AGF October 2015 Issue

Africa Global Funds Magazine: October 2015 issue

In this month’s issue of Africa Global Funds we continue to look at ESG (environmental, social and governance) principals. South Africa formally encourages investors to integrate into their investment decisions sustainability issues. We explore whether South African hedge funds have been taking ESG issues seriously and learn about the benefits of sustainable investing. Meanwhile, South Africa has a deep pipeline of available infrastructure assets, say Mark van Wyk and Kasief Isaacs of Mergence Investment Managers, adding that there is a case to be made for infrastructure investing right now. In addition, Mike Brown, Managing Director of etfSA.co.za, analyses the passive investment landscape in South Africa, saying that there has been some measurable swing to passive investment products in recent years. As the African continent continues to attract global interest, Mauritius is rising to become the natural gateway for investing in Africa. In this month’s market feature, Shaffick Hamuth, Economist and former Senior Investment Advisor of the Board of Investment, Mauritius, outlines opportunities for private equity as well as for capital markets investors. Finally, this month we speak with two private equity firms – a pan-emerging markets private equity investor Actis and long-term responsible investor Amethis Finance. We find out why Amethis stands out from the African private equity crowd and learn about Actis’s experience of investing in Africa.

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AGF September 2015 Issue

Africa Global Funds Magazine: September 2015 issue

In this month’s issue of Africa Global Funds we focus on impact investing and ESG (environmental, social and governance) factors. Many impact investors such as Vital Capital consider SMEs a crucial component of economic development. Eytan Stibbe and David van Adelsberg of Vital Capital share their experience on how to deliver both social and financial returns. Meanwhile, Stuart Bradley of Phatisa, discusses ESG principals and how to apply them to a private equity portfolio. The private equity fund manager goes beyond just ESG considerations: “We define ourselves as Development Equity – bringing capital to Africa for both financial and development impact, and demonstrating that financial returns and sustainability can be mutually inclusive.” Impact investments is also high on the agenda of the Swiss Investment Fund for Emerging Markets (SIFEM), the development finance institution of the Swiss Confederation, which focuses on SME investments, but also sector-specific and mid-market funds. Andrea Heinzer of Obviam, who manages SIFEM’s assets, tells AGF how to choose in which private equity funds to invest. Our market feature focuses on Zimbabwe. Rishay Lalla, Executive Partner at Atria Africa says that whilst the road ahead for Zimbabwe is treacherous, ignoring the headlines and paying special attention to detail is crucial in understanding the opportunities that exist. In addition, Jan van Niekerk of RECM, analyses value investing in the South African market. He says that uncertainty often brings the benefit of presenting very attractive opportunities for investors who are able to look past short-term volatility in market prices and instead focus on long-term investment prospects. Finally, Cindy Valentine, Barri Mendelsohn and Ofei Kwafo-Akoto of a global law firm King & Wood Mallesons, argue that there are plenty of investment opportunities for PE funds to deploy capital, in both the mid-cap and large-cap targets and platform investments in Africa.

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AGF August 2015 Issue

Africa Global Funds Magazine: August 2015 issue

In this month issue of AGF, we find that a number of pan-African equity funds have large allocations to Egypt, given their confidence in the country’s growth potential. We explore opportunities in the Egyptian stock market and discover that bottom-up stock pickers get the most from this North African economy. This month’s market feature focuses on one of the Maghreb region’ countries - Morocco. Said Desaque of Desaque Macro Research points that the geographic location of Morocco is being viewed as ideal to act as a regional financial and trade hub to bridge Europe and West Africa. For many investors, the consumer story in Africa is a big investment theme. Sven Richter of RenAsset Management argues that accessing the opportunity either as a firm looking to sell their products or as an investor looking to invest in these firms is not always easy. For the subject of our profile feature, Sulanji Siwale, Managing Director at Global Environment Fund (GEF), Africa is ripe for investments. He says that by working in conjunction with local partners, GEF aims to build local capacity, encourage sustainability, and promote long-term social and economic benefits within communities. Impact investing is also at the heart of the Dutch private equity firm - XSML Capital, which is currently fundraising for its second fund. Jarl Heijstee, Managing Partner, says that the Fund is hoping to achieve a first close in the fourth quarter of this year with a target size of $50m. In this month’s issue, we also learn that there are many parallels that can be drawn from India in 2000 to where some regions of Sub-Saharan Africa are in 2015. DSC Investment Partners’ Somdatt Kurdikar and Anhad Narula, say that SSA and specifically Nigeria should be attractive to Indian contractors and concessionaires.

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AGF July 2015 Issue

Africa Global Funds Magazine: July 2015 issue

In this month’s issue of AGF we speak with emerging markets expert Dr Mark Mobius, executive chairman of Templeton Emerging Markets Group. He has been investing in global emerging markets for more than 40 years and has received numerous industry awards. He is also the author of several books, including: “The Investor’s Guide to Emerging Markets,” “Mobius on Emerging Markets,” and “Equities—An Introduction to the Core Concepts” – to name a few. We discuss opportunities in Africa and what excites Mark about the continent. On the investors’ front, we speak with Mark Davis of Norfund to discuss the Norwegian DFI’s experience of investing in the energy sector. Davis says that clean energy is the largest component of Norfund’s portfolio: “Economic growth and the rising demand for electricity mean that massive investments must be made in the power sector.” Private equity remains a key route for investors to access Africa’s growth story. Pieter de Wet, Head of Research at Novare Equity Partners says that although the potential for exceptional returns via this route remains very high it does also poses some significant challenges. De Wet examines the Principal Agent Problem Theory and how it can be applied to private equity investments. The market feature in this month’s issue covers the largest economy in Africa – Nigeria. Akin Sawyerr of Market Atlas, says that the West African economy has lost a lot of credibility with the unceremonious removal of ousted central-bank governor Lamido Sanusi. He examines the Nigeria’s monetary policy and outlines actions to consider, saying that returning to sound fiscal policy administration is the next step to laying a foundation for sustained growth and investment in the country. In this month’s edition, we also learn about investment opportunities in the Zambian housing sector. The Pan African Housing Fund, managed by Phatisa, provides risk capital to local developers in East and southern Africa. Jan van der Merwe of Phatisa says that the need to improve the supply of affordable housing in Africa is long overdue.

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AGF June 2015 Issue

Africa Global Funds Magazine: June 2015 issue

In this month’s issue, we caught up with Hendrik Du Toit, CEO of Investec Asset Management to learn about the African start-up, which has grown to a global firm with $120bn assets under management and is the only South African-based asset management company with a truly global reach. Du Toit shares his thoughts on Africa, saying that “once Africa is in your blood you just can’t lose it”. In addition, Kyle Smith of African Alliance Asset Management explores the investment opportunity of South African listed companies as they become an increasingly viable proxy for African economic exposure. Historically, South African firms have been the pioneers on the continent, with many expanding their businesses into the challenging climate of young, newly independent African markets. “Powering Africa” has been a hot topic for the past few years, argues Jens Thomassen of Denham Capital. Significant private and public investment is required to successfully build out the continent’s new capacity needs. However, the biggest challenge facing the African power opportunity is bringing together sponsors willing to invest pre-construction development capital with a management team that’s qualified, has relevant experience and the local knowledge necessary to bring such projects to financial close and, ultimately, through to final construction. Finally, Justin Mahwikizi of Market Atlas, examines the challenges US institutional investors face when allocating funds in Africa. He says the issues are similar to the challenges that came with investing in Asia during their period of accelerated growth.

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AGF May 2015 Issue

Africa Global Funds Magazine: April 2015 issue

Over the past few months we’ve been busy collecting your votes on who should make our inaugural Africa Global Funds’ list of Top 40 institutional investors in Africa. With your help we have chosen institutions among banks, insurance companies and development finance institutions, as well as SWFs, endowments and foundations. The AGF Top 40 Institutional Titans is our recognition of these visionary investors who are shaping up the future of Africa. In this month issue we also speak with the former Deputy Governor of the Central Bank of Nigeria, Professor Kingsley Chiedu Moghalu, who tells us about his tenure at the CNB, his experience at the United Nations and his current projects. Professor Moghalu also discusses his book "Emerging Africa: How the Global Economy's 'Last Frontier' Can Prosper and Matter”. His principal argument is that the “secret of the wealth of nations begins in the mind that African nations need to build a real worldview of development and economic transformation based on endogenous innovation and industrial production and manufacturing”. Our market feature focuses on the Egyptian market, the aftermath of the Arab Spring and whether it is safe to return for investors. Alkan Shenyuz, CEO of Veventis, says: “Renewed political stability and the government’s commitment to reform has motivated managers to re-allocate and recognize the growing growth opportunities.” In this edition we also analyze the infrastructure sector to find out that the majority of deals are focused on the power sector. Investment into African infrastructure offers compelling exposure to African growth, while simultaneously helping to drive that growth, says Erika van der Merwe, CEO of the South African Venture Capital and Private Equity Association (SAVCA). “Unlike performances in other regions, infrastructure assets in Africa still offer private equity-style returns, and moreover enable private equity to invest in scale on a continent where there are limited investment opportunities of sufficient size.”

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AGF April 2015 Issue

Africa Global Funds Magazine: April 2015 issue

Investors must not underestimate the risks when investing in Africa. While Kenya has many investment opportunities and is considered as one of the Africa’s most attractive markets, the East African nation faces some serious security challenges. A reminder of that was the attack of Garissa University College in Kenya, which took 148 people lives - the deadliest attack since the 1998 bombing of the US embassy in Nairobi. Nevertheless, Anna Rosenberg, Head of Frontier Strategy Group’s Sub-Saharan Africa research practice, said that although Kenya’s challenges should not deter investors altogether, they must still be taken into consideration when investing in the market. In this month issue we also analyze the US Fed monetary policy and what it means for African markets. While speculations over the Fed’ plans to raise interest rates remain wide-ranging, sooner or later the regulator will change its zero-interest policy rate. Time will tell whether market participants are ready for the first major rate increase in the US since the financial crisis, but it is clear, that investors should acknowledge the heterogeneity of Africa. For equity investors, country-specific and company-specific analyses are of particular importance. In this month’s edition we also learn that private equity infrastructure remains a strong investment theme in the South African region, as do sectors benefiting from the emerging consumer. The subject of our profile interview, Erika van der Merwe of the South African Venture Capital and Private Equity Association (SAVCA) discusses challenges and opportunities in the region as well as outlines her expectations for the Southern African private equity industry going forward. On a fundraising front, we hear from the The Carlyle Group, which raised $2.5bn for its first international energy fund and is planning to invest around 10% to 20% in oil and gas industry in Africa, whereas Development Partners International (DPI) informs us that it raised $725m for its second pan-African fund, exceeding its $500m target. We also learn about the first Water Fund in Africa, which was launched by the Kenya government, businesses, conservation groups and utilities.

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AGF March 2015 Issue

Africa Global Funds Magazine: March 2015 issue

In February, we were closely watching the International Monetary Fund (IMF) moves in Ghana, which visited Accra to discuss the authorities’ economic and financial program and possible financial support. The West African nation experienced three difficult years characterized by declining economic growth, increasing inflation rates, rising debt levels and financial vulnerabilities. While the IMF reached agreement with Ghana on an extended credit facility, Said DeSaque of DeSaque Macro Research says that ordinary Ghanaians are likely to be less-than-enthused, with many having painful memories of previous IMF-imposed “structural adjustment” programmes. In this month issue, we also learn about the African real estate sector, which is an exciting way for investors to support and benefit from Africa’s rising consumer, according to David Lashbrook of Momentum Global Investment Management, who says that these opportunities need to be balanced with some of the challenges of operating in Africa. Another hot investment theme in Africa is infrastructure. STANLIB has recently reached a final close of its first private equity infrastructure fund. In this edition, Andy Louw, Principal of Infrastructure Investments at STANLIB, speaks about the fund’s strategy, renewable energy and fundraising for the second fund. Stories in this issue also include details from Nicholas Piquito, Group CIO for African Alliance Asset Management, who talks about the Group’s investment capability and growing trends in African asset management. Meanwhile, Marius Esterhuysen and Joel Burnette of Advent Software discuss the 2015 technology predictions for investment managers in South Africa.

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AGF February 2015 Issue

Africa Global Funds Magazine: February 2015 issue

Stories in this issue include: market feature on Madagascar; analysis of the Nigerian PFAs, outlook for 2015 from Renasset Management; details from African Alliance on its first SA index-tracker fund, and news from GEMfonds about a $500m Nigeria-focused infrastructure fund to be launched in June 2015

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Testimonials

I find AGF’s content to be well-written, interesting and highly informative. AGF is able to attract leading figures in the African fund market for exclusive insights and opinion articles that are difficult to find elsewhere.


Augentius

Joe Greenwell
Business Development Director - Augentius

Finding the news behind the news has always been the challenge, but Anna and her team always seem to pull it off. The AGF website, e-newsletter and monthly magazine are read by the whole Phatisa team; well-written, African private equity news not found elsewhere. We are proud to be affiliated with such a young, ambitious and driven media team and wish them only the best.

Phatisa

Stuart Bradley
Joint Managing Partner - Phatisa

We find AGF a very useful publication, especially covering, as it does, all asset classes in Africa (as, uniquely, does Investec Asset Management). The public funds data and macro stats are very useful, while the articles and interviews are insightful and often cover (in relative terms) neglected markets and asset classes.

Investec Asset Management

Nick Tims
Managing Director

I have found the AGF monthly magazine very informative and always containing some interesting research on the Private Equity industry not found elsewhere.

Harith: Financiers and developers of infrastructure projects

Emile Du Toit
Head: PAIDF 2

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