Mr. Market has spoken, and inflation is on the way. From Bank of America, this found its way into this contributor’s inbox recently: “US 5-year, 5-year forward inflation swaps [i.e., the price rises investors expect from 2026 to 2031] are pricing inflation consistent with the highest we have seen the past five years. This is not about base effects given last year's weakness, not about anything temporary”.
On the occasion of the Africa Financial Industry Summit, Anna Lyudvig spoke with Thapelo Tsheple, CEO of Botswana Stock Exchange to discuss investment products, IPOs and why Botswana is an ideal destination for investment.
In March, RisCura launched a series of impact fund of funds – the first of its kind in South Africa. According to Malcolm Fair, Managing Director, RisCura, there is a global shift in the way investors think about their investments - they want more accountability and are increasingly moving towards purpose-driven investment where they can make a positive impact through their assets.
In February, Africa Finance Corporation, one of the biggest investors in infrastructure solutions in Africa, appointed new Executive Director and Chief Investment Officer, Sameh Shenouda. AGF’s Anna Lyudvig speaks with Mr. Shenouda about his investment philosophy, experience, infrastructure trends and more
The Cape to Cairo Road was an idea, birthed in the 1890s by British imperialists, for a pan-African highway, stretching from Cape Town in South Africa to Cairo in Egypt. The N1 in South Africa forms the first section of this now famous project and runs from Cape Town to Beit Bridge at the border of South Africa and Zimbabwe. In his February 2020 State of the Nation Address (SONA), President Cyril Ramaphosa acknowledged the role of infrastructure investment, including the rehabilitation of the N1, N2 and N3 highways, in helping dig the country out of its economic malaise. And he is right!
AGF’s Anna Lyudvig speaks with Tariye Gbadegesin, Managing Director & Chief Investment Officer at ARM-Harith about the current state of African infrastructure, the drivers of successful investing in Africa and more. With over 20 years’ experience, Tariye has mobilized over $3bn of capital for infrastructure projects in Africa. Tariye sits on the Millennium Challenge Council’s Advisory Board and is on the Advisory Committee on Infrastructure to the United Nations Principles for Responsible Investment.
I penned an article for Africa Global Funds magazine in 2016, which addressed some interesting observations from the foreign exchange (FX) challenges that presented themselves in the African capital markets over the period from 2015 to 2017. At the time, I was employed as a capital allocator and the experience gave me pause-for-thought that perhaps the dealing terms of most funds with Africa ex-SA listed equity strategies need to be reviewed. Specifically, I argued that redemption terms focus on the risk of a decline in underlying market liquidity in times of stress but still fail to adequately address FX liquidity risk, which, when challenges arise, often last much longer than the 3-months redemption notice period that is typically applied.
The stress on financial research and market data strategies have never been higher. Market data strategies in organisations have been a common topic in recent years with most businesses trying to find ways to reduce their data spend. This topic has swiftly moved up the priority list with the impact of COVID-19 fundamentally changing the way we do business and increasing the cost pressures being exerted on firms.
2020 has seen the wholesale acceptance of high-tech solutions and it is now a given that everything is touchless, paperless, remote and in the cloud. The world is on Zoom, using cryptocurrencies to buy groceries at the tap of a smartphone, everything can be ordered online, and we’re all going on holiday inside our VR headsets.
In October 2019, Egypt’s government launched its first Sovereign Wealth Fund (SWF) named “Tharaa” (Arabic for wealth) to maximize the value of public sector assets. Africa Global Funds’s Anna Lyudvig speaks with Abdalla ElEbiary, Chief Investment Officer at The Sovereign Fund of Egypt (TSFE), to learn more about the fund, progress being made, investment plans and more.
East Africa is among the fastest growing regions in the world. The entire region has seen consistent GDP growth over the last decade, including in 2020 despite the Covid-19 pandemic. The region enjoys political stability, and diversified economic activity including the emergence of oil and gas as new investment pillar. MLC identified East Africa as the most attractive in Sub Saharan Africa, and a high priority for development. Heri Bomani is Executive Director and Chief Investment Officer at German investment company MLC Properties. In this Interview, he provides insights on the East African real estate market and some of its undiscovered opportunities.
In 2012, rockstar-turned-activist Sir Bob Geldof addressed the SuperReturn conference in Berlin, urging the US and European PE industry to turn its attention to Africa. He highlighted the opportunities to generate returns while leaving behind “firms, farms and factories” essential for the continent’s development. Eight years later and many PE sponsors have been drawn by Africa’s expanding economic growth and its youthful and rapidly growing population. Fundraising for the continent reached $3.8bn in 2019 according to the AVCA, the best year since 2015, and the number of PE deals successfully executed has risen consistently.
