Tag Archives | Africa opportunities

The role of cities in Africa’s rise

The rise of cities in Africa and their role in economic development is a global phenomenon. Today, over half the world’s population are urban dwellers, generating, in some cases, up to 80% of a country’s national production and income. By 2025 cities will house over 4 billion consumers…

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Boom for EA mergers and acquisitions

After 17 years of handling Corporate Finance and Transactions in Germany and the UK, a return home is timely what with the immense growth prospects this region has to offer. In the short time I have been here, I have noticed the positive impact the vast improvements in infrastructure has had on businesses — exponential growth. Companies in Kenya have the ability to implement change rapidly. Growth brings with it many challenges; first, management has to find innovative ways to increase shareholder value as competition gets fierce.

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Africa Conversations Series: Transacting in Africa

Recorded live in Johannesburg, this episode from the Africa Conversation Series focuses on transacting in Africa. On the panel: John Geel (Head of Transactions & Restructuring, KPMG), Heloise Smith (Executive VP, Business Development, Standard Bank), Alan Field (Head of Tax & Legal, KPMG) and Habil Olaka (CEO, Kenyan Bankers Association).

Many potential investors make the ‘mistake’ of developing a generic African investment strategy. Africa has 55 independent countries with different regulatory and legislative environments. It is key to tailor an investment strategy according to the countries of potential investment.

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Invest Africa: Insurance

Africa’s insurance market remains very small when compared to those in developed countries. The market contributes approximately 2% to GDP and caters to less than 5% of the population. Insurance is a grudge purchase and is heavily influenced by income levels. Short-term insurance currently makes up 90% of the African market and life insurance a meagre 10%.

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Invest Africa: Healthcare

Healthcare demands in Africa are changing. Providing access to clean water and sanitation, battling ongoing communicable diseases, and looking for cures for preventable deaths still dominate the healthcare agenda in many African countries. This edition of Invest Africa takes an in-depth look at the state of healthcare on the continent. Sub-Saharan Africa accounts for 11% of the world population, yet bears 24% of the world’s disease burden.

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Invest Africa: ICT & Telecoms

There are currently more than 500-million mobile subscribers on the continent as opposed to 240-million in 2008. Although the African telecommunications market is in its developmental stage, the market is growing at a faster rate than the rest of the world. Various projects are in place to increase Africa’s bandwidth. These projects aim to cut down costs for both the operator and the end-user.

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Invest Africa: Tanzania

Home to 43-million people, Tanzania ranks amongst the poorest countries in the world.

The country is reliant on agriculture which accounts for more than 25% of GDP, 85% of exports and employs 80% of the countries workforce.

Tanzania is endowed with vast natural resources and is the only country in the world where Tanzanite is found. The country is also the third-largest producer of gold on the continent which it exports to China, India and Japan.

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Invest Africa: Power

This edition of Invest Africa takes an in-depth look at the challenges and opportunities associated with the state of power across the continent. Rolling black-outs and unreliable energy supply are some the issues facing the sector right now.

Unreliable energy supply is one of the biggest challenges facing the African continent. A well-developed energy sector drives most other economic sectors within a country and is an essential tool in boosting investor confidence. Fast-growing industrialisation and a booming population are driving up the demand for electrification.

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Invest Africa: Rwanda

In this edition of Invest Africa the focus is on the opportunities and challenges that continue to plague the East African country of Rwanda as it tries to rebuild its image with the global economy.

There has been an increased interest in Rwanda as an investment destination – the country is one of Africa’s fastest growing economies. Its GDP growth is mainly due to an improved harvest, rising exports and increased credit extensions. Overall, the country is expected to maintain a very positive growth rate.

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Invest Africa: Nigeria

Nigeria is the most populous country on the African continent with approximately 150-million people and is the 32nd largest country with the 41st largest economy in the world.

According to the World Bank, Nigeria is classified as a mixed economy, emerging market. Nigeria has reached middle income status, with well developed financial, legal and transport sectors. Nigeria boasts the second largest Stock Exchange in Africa and enjoys an annual economic growth of 7%.

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Invest Africa: Kenya

In this edition of Invest Africa, the focus is on the East African country of Kenya. The panel identifies key challenges and opportunities when it comes to investing in the country.

Kenya is regarded a regional hub for trade and finance in East Africa and many large corporations have the Africa headquarters in Nairobi. Continued economic and political transformations are essential in order for Kenya to maintain this status. Kenya boasts advanced markets and high market adoption rates. Technological advances are significant — fast adoption of applications. Increased interaction with customers and stakeholders through social media — revolution on its own, social media cannot be ignored.

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Airplane on runway.

Africa Brief: Fastjet, International Finance Corporation, investors in Absa, and more

Five Forty Aviation had withdrawn Fastjet’s rights to use the Fly540 brand in a dispute over licensing fees and had notified airline regulators in Tanzania, Angola and Ghana of the change, it said yesterday Five Forty Aviation was owed $7.7 million (R69m) by Fastjet, which also had not provided required safety information.

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Business in Africa: Fraud and Corruption

Fraud and corruption will always be at the forefront
of the minds of those looking to invest in Africa. In this regard, the recently published KPMG Africa fraud Barometer for 2011 reported some telling statistics about reported fraud on the continent. The Barometer was developed “to form a bigger picture of fraud prevalence on the African continent”, incorporating data from available news articles on Africa and other designated databases. The Barometer compares fraud reports from the six months ended June 2011 to the six months ended December 2011.

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Business in Africa: Some challenges on the road to a promising future

The April 2012 World Economic Outlook report published by the International Monetary Fund presented a sturdy but cautiously optimistic future for the various African economies. Sub-Saharan
 Africa particularly recorded a strong 5 percent growth in 2011 and was one of the regions least affected
by the global financial crisis. With the exception of South Africa, limited financial ties to Europe helped shield the region from the financial havoc that tore through Western economies in late 2011.

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Sustainability Megaforces: Is the insurance industry prepared?

The insurance industry relies on the ability to make informed predictions of future events as the basis for taking actions in the present. increased severity and/ or frequency of weather events, if not adequately accounted for, will mean that claims exceed levels predicted by actuarial models, and premiums will not be set correctly. Figure 2 illustrates the trends in the number of disasters reported internationally per year.

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The 10 Sustainability Megaforces

Deepening social, economic and environmental challenges over the last two decades mean that sustainability issues are increasingly prominent in global business. sustainability trends predicted to play out over the next 20 years paint a picture of resource constraints, increasing regulation, shifting competitive landscapes, changes in market size and shifting consumer preferences.

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Africa Conversation Series: Africa-China trade and investment

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…

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Africa Conversation Series: Climate proofing Africa

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.

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Africa Conversation Series: Infrastructure challenges in Africa

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.

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