Tag Archives | investing in Africa
Private equity investment into Africa, and fund managers’ ability to raise capital for funds dedicated to the continent, are both trending strongly upward.
Kenya’s financial services industry is currently one of the fastest growing not only in the East African region but the continent with the Nairobi Securities Exchange (a financial assets and securities market) being ranked fourth in Africa.
Private equity investment might provide some exciting opportunities for your business, but it also comes with a number of challenges. Private equity is capital that is put into a new or growing business in return for part ownership of the business and a share of its profits. Private equity investors don’t typically want to be permanently involved in a business – they will step in for a few years and then exit by selling back their shares to the business, along with a return investment.
Illovo Sugar reported a 43% rise in headline earnings per share to 189.6c for the year ended March. Illovo delivered a record production of sugar cane from its own farms of 6.5-million tons, while independent fanners also did well. Between Illovo’s own farms and independent farmers, nearly 15-million tons of cane was crushed. And they’ve produced 14% more sugar from that cane than the year before with sugar production of 1.75-million tons.
Foreign Direct Investment (FDI) into Africa is on a path of continuous growth according to the Africa Emergence: Rise of the Phoenix report. Growth in the region, to date, has been referred to as only the “tip of the proverbial iceberg”. Our own Yunus Suleman added that the continent has much more to offer, and that Africa is set to hold its title as one of the largest FDI destinations and one of the fastest-growing economies.
According to the Fraud Risk Barometer, the occurrence of reported fraud has decreased from 503 in the first half of 2012 to 348 cases in the second half of 2012. It is the third consecutive period where a decrease in reported fraud and corruption …
Sub-Saharan Africa is expecting a 5% annual growth rate in 2012-2013, and World Bank data show that almost half of Africa’s countries have reached middle-income status. As this growth trend continues, the continent is a potentially attractive destination for domestic and foreign private capital, including private equity investments, which will further boost growth rates.
KPMG has released its findings of the third Africa Fraud Barometer. According to the tool, the occurrence of reported fraud has decreased from 503 in the first half of 2012 to 348 cases in the second half of 2012. It is the third consecutive period where a decrease in reported fraud and corruption related cases can be recorded. In the same period, however, the value of fraud increased from US$2 billion to US$4 billion. About three quarters of all fraud cases in Africa are reported in Nigeria, Kenya, Zimbabwe and South Africa.
This episode of the Africa Conversation Series focuses on executing strategies across the African continent. Recorded live at the KPMG Africa Partners Conference.
“Been there – done that” highlights discussions with organisations who have expanded into Africa and their experiences in executing their strategies across the continent.
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.
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.”