Fund managers face numerous challenges in today’s increasingly complex investing and operating environment. Operational issues, specifically when properly understood and managed, help efficiency. As managers consider the stakes for sustained growth, outsourced shadow-accounting as an extension of in-house operations provides access to an array of capabilities that are increasingly seen as critical to mid-sized and large hedge fund operations.
Egypt and the International Monetary Fund (IMF) signed a preliminary agreement on a $12bn 3-year loan facility on August 11. If approved, the loan will support government reforms, which are required to support the Egyptian economy. The reduction of the public deficit that is above 12%, adjustment of the Egyptian market and foreign reserves’ increase, which have reached a critical level - are short term milestones.
AGF speaks with Nonnie Wanjihia, Executive Director at EAVCA (The East Africa Venture Capital Association) about the private equity environment in East Africa and the role of EAVCA
Hitherto, the bulk of funding deployed to finance Africa’s economic development has not been Sharia-compliant due to the requirement to pay interest to lenders. Periodically, the inability of governments to repay interest has eventually resulted in debt forgiveness by foreign banks. While Islam is a major religion on the continent, its communities have historically been underserved by banking systems and capital markets. Africa’s population is expected to double by 2050 to 1.9 billion, particularly in those countries with sizeable Islamic communities. This demographic growth should imply, therefore, a considerable increase in the demand for financial products satisfying Sharia principles.
The Africa Rising narrative from a few years ago has increasingly become an Africa is dead storyline. The negative image currently portrayed in the media is probably not completely without merit. The continent faces some tough challenges, from macro-economic headwinds resulting from lower commodity prices and a generally weaker external environment to a shortage of hard currency and weaker currencies. Furthermore, the drought in southern Africa regions is causing higher inflation and putting pressure on consumer discretionary incomes. Despite the persistent flow of negative news and the short-term deterioration of economic fundamentals, we believe there are a number of reasons to be optimistic about the longer term investment potential of Africa.
Over the years as international investors have searched for yield and found themselves looking towards Africa, many have invested with a long-term mindset focused on private and public equity strategies. Both strategies offer promising returns over the longer term, but the higher returns do not come without lack of liquidity and significant volatility.
Quite unexpectedly, the Panama Papers was raised at a recent society event I attended in Zimbabwe, and while the popular press has permeated even to the most unexpected areas – often without an accurate consideration of the facts – it made me think about how much is truly understood about the driving forces behind using offshore structures, and how alternative funds benefit Africa. Contrary to what one might read, using offshore structures extends well beyond tax neutrality considerations. This article considers the advantages of structuring through established and reputable offshore jurisdictions with a particular focus on the Cayman Islands.
EMPEA has released 1H 2016 Industry Statistics for emerging markets private equity, private infrastructure and real assets and private credit. AGF speaks with Jeff Schlapinski, Director, Research, EMPEA, about trends in Sub-Saharan Africa.
The Infrastructure Project Preparation Facility (IPPF) is a multi-donor trust fund managed by the African Development Bank on behalf of the New Partnership for Africa’s Development (NEPAD). IPPF supports the development of regional and continental infrastructure with grants to African governments, Regional Economic Communities (RECs) and African infrastructure-related institutions to prepare high-quality viable trans-boundary projects in energy, trans-boundary water resources, transport and ICT. Shem Simuyemba of NEPAD Infrastructure Project Preparation Facility talks about the facility and how it address one of the weaknesses of infrastructure development in Africa.
The North African country will continue to be a very important geographical area for PE funds investing in the Maghreb region, says Albert Alsina, CEO & Managing Partner, Mediterrania Capital Partners
Early this year, President Barack Obama signed into law the bipartisan Electrify Africa Act of 2015, essentially codifying the US President’s Power Africa Initiative that he began in 2013.
According to the latest Morningstar South African Rating Analysis of unit trusts, Foord Unit Trusts has been the country’s top asset manager, based on both equal-weighted and asset-weighted ratings. AGF speaks with Nick Curtin of Foord, who is responsible for the firm’s institutional investor relationships.
Agriculture, mining and services are key to a more stable and prosperous future in Nigeria, says Bolatito Ajibode, Head, Conglomerates & Industrials, Stanbic IBTC
AGF’s Anna Lyudvig speaks with David Kitawi Mwakitele, Director in charge of Business Development and Strategy at Seriani Asset Managers, on the state of the Kenyan pension fund industry
