Tag Archives | investment opportunities
Recently the Carlyle Group, one of the largest global asset management firms, specialising in private equity, closed its maiden sub-Saharan Africa Fund at around US$700m – about 40% beyond its original target. This has followed the closure of a number of similar Africa funds at anywhere from US$350m to US$1bn. Private equity operating norms suggest that these funds will have to be deployed within the next couple of years – and this illustrates the direction of travel of one of the most focused streams of global investment capital.
Nigeria’s extremely large, youthful and increasingly urbanised population is helping to support a growing national fast moving consumer goods (FMCG) sector. Food, beer, soft drinks, personal care and home care are the primary categories of FMCG, and all of them burgeoning in this rapidly emerging, growing consumer nation, presenting attractive investment opportunities for businesses prepared to saddle the risks in light of the attendant rewards.
Foreign investors are keenly pursuing opportunities in the small East African nation of Uganda in the fields of mining and agro-processing.
Ecobank recently coined a new emerging market investment grouping – The Africa 8. Unlike other emerging market groupings, this one focuses entirely on investment potential going forward within Africa itself.
In absentia healthcare has been around for a long time, utilising methods such as smoke signals, the post and two-way radio, but with the help of telephony (in particular mobile telephony), the internet and other IT technology such as satellites the possibilities for medical professionals and healthcare staff to communicate with one another and with patients at great distances…
Over the past quarter, we have downwardly revised our forecast for the real GDP expansion of sub-Saharan Africa in 2013, 2014 and 2015. But to be clear, the overall trend is still positive, with real GDP growth increasing every year up to 2015, after which we expect the growth figure to remain at the same level in 2016.
Africa’s private equity (PE) landscape is uncharted and at an early stage of development, however, it is growing steadily and giving good returns. In fact, according to a KPMG survey, a record amount of 25.7 billion rand ($3.03 billion) in PE money from Africa was returned to investors in 2011, up from R18.1 billion in 2010.
According to Dapo Okubadejo, the partner in charge of Corporate Finance & Financial Advisory Services at KPMG Nigeria:
“Africa is now viewed by PE houses and fund managers as a priority investment destination. As growth in other economies have slowed in recent years due to the 2008/9 recession and current crisis in the Eurozone, investors have been looking to emerging markets and economies that will provide higher return rates and Africa is continuously proving its business case for investment.”
Africa is no longer just a curiosity, it is a big source of profit. Boasting GDP growth of more than 5% over the past decade, a population of over 800 million and a total purchasing power of 1.9 trillion US dollars. With growth of any financial services sector really intertwined with that of any economy, it’s not hard to see the appeal that this sector, and investing in it, offers. Once this investment gets made, it then triggers a vicious circle where financial services plays a critical role in unlocking Africa’s full potential.
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.
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.