About David Okwara
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NOT a single rand was raised in this country for investment in early-stage or venture capital-type investments last year. These are the investments that spawn new technologies out of which, if they are successful, new industries are grown and thousands of new jobs created. So why is there such a truly astonishing lack of investment? Speaking at the launch of the KPMG/ South African Venture Capital Association annual Private Equity Industry Performance Survey, KPMG director Warren Watkins told a meagre audience it wasn’t so much a lack of ideas and effort, since there is a more than adequate supply of these, but rather the comparative absence of incentives similar to those applied in other countries.
This week we travel to to the horn of Africa for a closer look at the investment opportunities and challenges in the East African nation of Ethiopia. With a population of close to 82-million, Ethiopia is the second most populous country in sub-Saharan Africa and the most populous land-locked country in the world.
Its capital, Addis Ababa, serves as the headquarters for both the African Union and the United Nations Economic Commission for Africa. Ethiopia has faced numerous hardships throughout its history.
The dilemma that the author faces is a common one faced by many a family business: the author believes it’s never too early to plan for the future and wants to preserve the business for his three sons, all of whom have other plans though …
A firm challenge has been set for the 450 companies listed on the JSE in June 2010 to publish an integrated report or explain why they cannot do so. South Africa is the first country to mandate integrated reporting for all listed companies. But one full set of integrated reports later and companies still have a long way to go. Many countries have adopted corporate governance guidelines similar to the King 3 codes, though the drafter himself, Mervyn King, would like to see all capital markets go the route of SA. They may not be ready, but an initial, crucial step would be the adoption of voluntary filing programmes.
The 22nd World Economic Forum (WEF) took place in Addis Ababa, Ethiopia themed ‘Shaping Africa’s Transformation’. The Forum hosted over 700 delegates from around the world who discussed and debated some of the issues required to drive Africa’s growth agenda.
With the ongoing financial turmoil in traditional investment markets such as the United States and Europe, investment and expansion into Africa was at the top of the forum’s agenda. The forum highlighted the fact that there are huge opportunities for great investment returns in Africa and there was a specific focus on integrating and expanding Africa’s capital markets.
While the number of private equity deals declined from 547 to 521 last year, the value of investments increased by 32.2% to R15.6-billion, the latest KPMG and Southern African Venture Capital Association (Savca) venture capital and private equity industry performance survey showed on Tuesday. Of the R15.6-billion invested, R8.6-billion went into follow-on investments, with the remaining R7-billion targeting new investments.
SA’s private equity sector last year shrugged off the global economic uncertainty with funds under management topping a record R115bn, including uncommitted funds of more than R34bn, KPMG said yesterday.
While the sector attracted investors seeking exposure to emerging markets, an executive at KPMG said other sub-Saharan African markets besides SA were drawing global private equity funds to regional opportunities.
KPMG is committed to Africa – and to continuing to work with our clients in realising the many business opportunities that the continent presents. Realisation of the many significant investment opportunities across Africa and what is required to achieve these continues to spread rapidly; as was emphasised again in various discussions at the recent World Economic Forum on Africa in Addis Ababa.
Successful business founders saw the transfer of their expertise as the best mechanism to train the next generation of leaders. Yet, despite the strengths of the apprenticeship model, studies show that successions on average reduce the performance of the family business …
The value of Canadian mining mergers and acquisitions plunged 50% in the first quarter compared to the prior three months, with only one deal topping $1-billion.
Gold accounted for 60% of deal volume and value for the period. During the three months ended March, KPMG counted 25 deals worth more than $10-million in the Canadian mining sector, which was comparable to the December quarter’s deal volume.
KPMG’s Africa Conversation series is dedicated to developments in Africa and the implications for the continent’s economy. The Conversations facilitate interaction and knowledge-sharing between KPMG experts, clients, and businesses operating in various economic sectors across the continent.
Topics are selected to reflect the most important and topical opportunities and challenges in Africa, and are discussed by a panel of experts in each field. Sharing our knowledge through this platform is one more way that KPMG adds value to businesses that are active in, or aiming to become active in, Africa.
The future of mining in Ghana is dependent on the short- to medium- term outlook of the gold price, which will determine whether gold miners in the country are successful, and the government initiatives around tax reforms that have the potential to seriously affect the growth of the industry.
Ghana has been viewed as an investor-friendly mining destination in the past, but this perception may be challenged, says KPMG energy and natural resources advisory practice director and Mining in Africa services head, Ian Kramer.
It’s a little known fact that many public companies originally started out as family businesses. And in some countries, some of the largest publicly listed companies are family-owned. For example, did you know that ⅓ of Fortune 500 companies are family-owned? For an overview of family owned businesses around the world, take a look at the following infographic…
A KPMG survey entitled Responses to the Climate Change Debate: KPMG Mining Industry Survey covered North America, the Asia Pacific region, Africa, the Middle East, and South America.
Ian Kramer, Director and Head of Mining in Africa for KPMG, says that the report found that less than 20% of global mining sector players believe that climate change is a significant driver for new initiatives in their organisation, with almost 50% of the sector reporting that their organisations had not quantified the potential cost of climate change into their business.
According to mining in Africa director, Ian Kramer, there will be significant opportunities and projects coming on stream in the African mining industry regardless of the decrease in demand experienced by various markets.
“Massive growth will be experienced in the next six months to a year and beyond – for example, investments in the coalfields in Mozambique, as well as the iron-ore market and existing and new investments in Guinea, but these may take longer than a year to come to fruition.”
This episode of the Africa Conversation Series, sees the panel of industry experts putting the spotlight on Africa’s growing relationship with China. What are prospects looking like moving forward, in terms of being able, to leverage off the opportunities that this relationship brings with it and at what cost? It certainly is a sensitive issue right now, following the South African governments failure to grant a visa to the Dalai Lama. With many asking whether the price we are paying for this relationship is actually worth it and whether we are managing this relationship in the best way possiple…
World Bank Chief Economist for Africa, Shanta Devarajan, recently wrote that sub-Saharan Africa in 2011 has unprecedented opportunity for transformation, and sustained growth, and helping to ensure the right energy solutions are available to help achieve this prospect will simultaneously be good for climate protection and local development as well. Still at the threshold of a renewable energy revolution, what are some of the challenges this environment presents and what are some of the opportunities for investors? This is just some of what is discussed in this episode of the KPMG Africa Conversation Series.
In this episode of the Africa Conversation Series, the panel of industry experts discuss the challenges that infrastructure poses of the progression and economic growth of Africa. The constraints to growth posed by inadequate infrastructure – whether it be road, rail, power, or ICT – is all too familiar. There is persistant talk of need to be physically building Africa. In this episode we hear a discussion on the pace of transformation and the strides that have been take in the area of infrastructure in Africa.