Although the recent experience in Nigeria is a reminder that the high rewards investors seek in Africa tend to be accompanied by elevated levels of risk, the long-term outlook for African markets remains positive, says Johan Steyn, Portfolio Manager at Prescient Investment Management.
China’s investment in African resources remains at a relatively early stage and is likely to increase further over the next decade, despite the economic slowdown being experienced in the world’s second largest economy, says George Fang, Standard Bank’s Beijing-based Head of Mining and Metals in Asia.
Musa Manyathi, Director of International Tax at Deloitte South Africa, explores the tax related challenges that South African companies face when looking to invest into the African continent.
Simon Freemantle, Senior Political Economist at Standard Bank, comments on the landscape for African elections in 2015.
The reintroduction of capital gains tax (CGT) faced severe criticism, with many analysts indicating it could impact investment in equities and the real estate, oil and mining sectors, says Michael Kimondo, Head of Treasury Operations at Fusion Group.
KPMG Africa outlines key strategies for achieving successful private equity exits in Africa.
Nigeria’s election dates have been postponed by six weeks. The presidential and Federal National Assembly elections, which had been scheduled for Saturday, February 14, will now take place on March 28, and the elections for state governors and state assemblies, originally set for February 28, will now happen on April 11.
The commodities cycle has not yet bottomed out, says Michael Rawlinson, Global Co-Head Mining & Metals at Barclays.
The civil war that erupted in South Sudan in December 2013 has devastated the country, and has had detrimental economic and, more importantly, social consequences across the East Africa region. Almost two million people have been displaced by the violence, and although there is no official death toll, the International Crisis Group estimates the figure could be between 50,000 and 100,000 people.
A growing body of evidence suggests that financial institutions and financial markets exert a powerful influence on economic development, poverty alleviation, and economic stability, says Martin Čihák, lead economist at the World Bank.
Private equity in Africa is fast-growing and investing in a variety of sectors. Kem Ihenacho and Linzi Mutter, Partners at Latham & Watkins, look at challenges that investors face.
The best investment opportunities reside in places where others aren’t looking. In practical terms, this translates into mid- and small-cap value stocks offering an excellent hunting ground for great long-term investments. This leads us to recommend three under-researched companies, namely Afrimat, Sasfin and ELB Group.
The 6th Forum on China-Africa Cooperation (FOCAC) will be held in South Africa in 2015. This will be the first FOCAC meeting since President Xi Jinping assumed office in 2013. Given China’s priorities and agenda in past FOCAC meetings and the heightened importance the Xi administration has attached to Africa, expectations are that China will boost its financing commitment and development priorities in Africa at the 6th FOCAC meeting. The outcome will guide China’s Africa policy for the following three years.
The fallout in South African money market funds from the collapse of African Bank is a timely reminder that these investments are not completely risk free. Small capital losses have sparked big runs on money market funds in other markets. Investors should be sure to put as much emphasis on return of capital as they do on return on capital, regardless of asset class.
