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AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Investors

UWIN research: Investors expect FDI into Africa to increase

Africa Global Funds
Nov. 26, 2018, 9:41 p.m.
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Word count: 436

More than 60% of professional investors expect foreign direct investment into Africa to increase over the next five years, according to a research from UWIN (Unleashing the Wealth in Nations).

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More than 60% of professional investors expect foreign direct investment into Africa to increase over the next five years, according to a research from UWIN (Unleashing the Wealth in Nations).

According to the findings, 12% of professional investors anticipate a big rise, whereas 10% anticipate a fall in this area.

Moreover, the research reveals that 45% of professional investors view Africa as an attractive investment opportunity, and just 27% see it as ‘unattractive.’  

Sandra Ro, Managing Partner and COO of UWIN, said: “Despite the positive attitude towards Africa from many investors, the continent has many issues to tackle.”  

“In terms of the biggest ones holding them back, 82% of investors we interviewed cited a lack of infrastructure, and 82% highlighted corruption.  This is followed by a lack of robust regulation (78% of investors) and political risk (80% of investors).  However, there is a strong feeling amongst investors that many of these issues are beginning to be addressed,” she added.

UWIN is a new blockchain business aiming to transform farming and commodity trading in Africa and other parts of the developing world.

The main reason why investors believe Africa will attract more foreign direct investment is because technological advances will help transform economies there – the view of 70% of those interviewed.   

This is followed by 54% who said it is because the continent will become more appealing to investors because there will be greater stability in the region, followed by 44% who said its young and fast-growing workforce give it an advantage over 
many developed countries that have the opposite. 

Some 46% of professional investors expect Africa to enjoy some of the strongest economic growth of anywhere in the world over the next few years.

Julius Akinyemi, CEO of UWIN said: “Our research shows investors feel African governments are becoming more focused on addressing some of the challenges they face. Between now and 2023, 42% of investors expect levels of corruption in Africa to fall compared to only 24% who anticipate it will increase.” 

“Much of the investment into Africa is also expected to go on improving the infrastructure of the region – 80% of investors expect the use of Project Finance in Africa to increase over the next five years, and 88% believe the amount spent on infrastructure overall will increase.”   

UWIN is currently in discussion with African governments on how they could use its new and unique technology proposition that for the first time will enable farmers in the developing world to properly register their commodities, mobilise them and efficiently trade their produce on a trusted platform.

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