Broadly, it is common to state that private equity has not worked well in Africa. Private equity generated much hype in the noughties, a period of stagnation for global markets. Large buyout operations came looking for large ticket sizes in a market that was, simply put, not large enough to deliver the right portfolio or sophisticated enough to provide the right exits. A number of players made high-profile exits from the market, and the stain never washed out.
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In 2023, we saw private equity firms continue to integrate ESG considerations into their investment processes with Limited partners (LPs) and regulators continuing to prioritize the importance of transparency and reporting related to ESG factors. Whether the ESG acronym continues to be used over the long term remains to be seen but, make no mistake, ESG in one form or another has cemented itself into the private equity landscape. Irrespective of recent political debate in the US, general partners (GPs) must accept that ESG has become a strategic imperative and, given the ESG regulation sweeping across the globe, a legal necessity.
Project finance in Africa stands at a crossroads, representing both immense potential for growth and development and a series of unique challenges that demand innovative solutions. This article explores the current situation of project finance in Africa, shedding light on the key issues and challenges faced in the region. Additionally, we will delve into the role of a strategy advisor in assisting developers and governments in overcoming these challenges, fostering successful project finance initiatives in Africa today.
Finaltus is a Licensed Investment and Transaction Advisory Firm, based in Nairobi with a wide range of experience in multiple African countries. At Finaltus, we bring vast Knowledge and practical experience from a range of sectors. We understand that Africa is a continent of immense diversity, offering both opportunities and challenges in equal measure with each country possessing its unique characteristics. Finaltus excels in this regard by adopting a versatile approach to investment and corporate finance, providing tailor-made solutions to meet the diverse needs of our clients. We also have a global reach through carefully selected partners located in the leading finance capitals.
Rajan Rosick, Director in Trident Trust’s Mauritius office and Karine Seguin, Head of Business Development – Fund Services, Europe, recently spoke with Africa Global Funds Magazine about Trident Trust’s journey in African Private Equity.
RMB's Miranda Abraham says investors in Africa deserve to be fairly compensated for the risk they take.
If you’re reading this, there’s a very good chance you’re already familiar with the acronym ESG. Standing for “environmental”, “social”, and “governance”, it’s a constantly evolving standard that emphasises the importance of doing business in a way that positively impacts the environment, society and stakeholders. In essence, it’s the idea that companies can grow and profit while doing good and it encourages businesses to be more transparent about how they add to or create value for their society, community and/or stakeholders.
In Nigeria, Baba ‘go slow’ has been replaced with Bola go-go-go! Aside from an entire reset of central bank policy, Bola Tinubu has done more to advance energy transition in his first month as President than past leaders achieved in decades.
Africa Global Funds’s Anna Lyudvig speaks with Valdene Reddy, Director: Capital Markets at the Johannesburg Stock Exchange (JSE) about the market trends in South Africa, IPOs and technology.
Following a year that was a hard period for most asset classes, 2023 has started with a bang. Global equities are up 13.92% as of 14 February, global property is up 14.04%, emerging markets are up 11.76%, the JSE top 40 are up 10.28%, and even South African government bonds are up 2.82%.
Far from the return to normal that many thought it would be, 2022 presented a whole host of new geopolitical and economic challenges that completely upended the investment landscape. Supply chain issues - already a problem during the COVID-19 pandemic - were aggravated by the war in Ukraine and ongoing tensions between China and the West. Those issues helped exacerbate the kind of inflation not seen for decades. In a bid to curb inflation, central banks around the world have dramatically increased interest rates, effectively bringing to an end to the era of “free money” that followed the 2008 Financial Crisis.
The investment world’s fixation on global inflation and whether we are approaching the peak and heading towards a recession, has many investors sitting on cash, waiting for signals of a better market. Despite this, investing in South Africa presents a convincing opportunity.
How will geopolitical uncertainty and the economic downturn affect investment in the African healthtech sector?
At the height of the COVID-19 pandemic, the world was primed for a substantial increase in health and biotech spending and investment. Governments and the private sector alike promised to dedicate funding so that they would be adequately prepared for the next pandemic if or when it came.