Even though several negative factors impacted the investment environment in 2023, South African markets followed global peers higher in the final quarter with the FTSE/JSE All Share Index ending the year at 9.3%, which was marginally behind bonds at 9.7% but ahead of cash, at 7.8%. The standout performance for 2023 came from global equities, with the All Country World Index (ACWI) returning 31.3% (in rand).
Soria Hay (SH), Founder of Bravura and Head of Corporate Finance, talks to Africa Global Funds (AGF) about Bravura Group and recent developments
The seventeen UN Sustainable Development Goals (“SDGs”) which have been adopted by all members of the United Nations back in 2015 are considered as a set of rules which guide Private Equity Fund Managers to address social and environmental challenges in countries where they make investments. Generally, Fund Managers have played a vital role in helping emerging markets when it comes to achieving SDGs. For over a decade, several Fund structures along with their related entities which have been domiciled in Mauritius, have been actively involved and participate in the management of their respective portfolio companies. They work towards the implementation of strategies which ultimately bring value addition, growth and acceptable financial performance to those businesses.
Guillaume De Meyer, Global Service Director (left) and Emmanuel Maire, Head of Technology (right) from Temenos Multifonds discuss the issues impacting asset management firms in South Africa, and how the latest technology can help do address them
In 2022, Mergence Investment Managers acquired a controlling equity stake in a portion of the innovative affordable rental housing group, Live Easy, through the Mergence Infrastructure and Development Equity Fund I.
One of the main features of the African currencies is their dependence on their own idiosyncrasies, according to Matthew Ryan, Head of Market Strategy at Ebury.
Initial Public Offering (IPO), Sale to Strategic Buyers, Secondary Market or Management Buyout (MBO) - each of these strategies has its own advantages and considerations, and PE firms seeking to deliver superior returns must choose the one that aligns best with their investment goals and the specific circumstances of the portfolio company, writes Albert Alsina, Founder and CEO, Mediterrania Capital Partners.
Verdant Capital Hybrid Fund has invested USD 9 million in LOLC Africa, promoting financial inclusion and job creation through the financing of Micro, Small and Medium Enterprises (MSMEs) in Africa.
Nicholas P. Piquito, CEO, Asset Management, African Alliance Group
South Africa, as Africa’s third largest and most diversified economy in the African continent, holds immense potential for economic and social development. With its abundant natural resources, youthful population, resilient infrastructure, and deep capital markets, South Africa can regain its position as a dynamic force on the African stage. However, to harness this potential fully, critical challenges like power shortages and unemployment must be addressed.
The majority of African tech investors (71%) will not invest follow-on funding in a startup failing to provide them with regular reporting updates, according to a newly-released report from Wimbart, a PR agency specialising in tech & startup sectors across Africa and emerging marketsю
The first half of 2023 saw 263 VC deals take place in Africa’s venture ecosystem, allocating a cumulative $2.1bn of capital to 258 unique companies. This corresponds to a 40% decrease by both volume and value compared to the $3.5bn raised in 2022 H1. At slightly over $1bn raised each quarter, this contraction in startup funding is being referred to by some as a “funding winter” for African venture capital.
Until recently, Ghana was considered a macroeconomic and political model in sub-Saharan Africa: in 2019, the World Bank described it as ‘a rising growth star’. However, in May 2023, the IMF signed a new bailout agreement worth $3bn over three years. It’s a program that’s widely seen as a band-aid for a host of long-term economic challenges facing the country - a net importer - including a balance of payments deficit. The nation’s public debt is nearly as large as its annual economic output, inflation has been running at over 40% in 2023 and Ghana’s currency, the Cedi, has fallen by more than 45% against the dollar since January 2022. The bailout will do little to address poverty, create new jobs, boost salaries or address the rising cost of living facing Ghanaians.
The African Private Capital Association (AVCA) and the Tony Blair Institute for Global Change (TBI) have announced the release of the Climate Financing in Africa: Strategies for the Future report, a new study outlining the current landscape of investment in building Africa’s climate resilience.