Tag Archives | transacting in Africa

What are the funds changing the face of private equity in Africa?

What are the funds changing the face of private equity in Africa?

Among the most important private equity players are public companies, which often base their investment decisions on considerations other than pure profit

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Transacting in Africa – Exporting to Tunisia

With its 2011 Arab Spring involvement done and dusted, and the global recession lessening its grip on economies, Tunisia’s imports are once again on the rise. The economic forecast however is not for plain sailing; the country’s newly elected government faces immediate challenges in terms of stabilising the economy.

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Doing Business in Malawi

With promising economic prospects and major opportunities in the telecommunications, agricultural, tourism, finance and manufacturing sectors, Malawi is an investment destination of note. The government encourages both domestic and foreign investment in most sectors of the economy without restrictions on ownership, size of investment, source of funds, or the destination of the final product.

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Using Nigeria’s oil to diversify the national economy

Reviving Nigeria’s Natural Wealth: Reform in the mining industry

Nigeria is known for it’s vast natural wealth, with majority of the country’s foreign exchange income and government revenue stemming from oil. With the recent announcement that Africa’s wealthiest man, Aliko Dangote, has signed a deal to finance the building of Africa’s largest oil refinery in Nigeria, all eyes are on the region’s mining sector.

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Malawi Country Focus Seminar

Malawi Country Focus Seminar

The Malawi Country Focus Seminar is proudly brought to you by KPMG in collaboration with Africa Exchange and in association with the Trade Fairs Department of the SA German Chamber of Commerce.

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Africa Brief: Violence in Egypt knocks markets, Ghana’s consumer price inflation, oil thieves in Nigeria and more

Egyptian shares have slumped after police moved to disperse two anti- government sit-ins in Cairo, leaving at least 13 dead. The benchmark EGX 30 index retreated 1.1 percent to 5585.12 at 11.11am in Cairo. The death toll reported by the Health Ministry was disputed by the Muslim Brotherhood, which claims hundreds were killed by security forces…

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Africa’s top 5 education priorities

Zambian Tax Alert

At the end of June 2013, the Zambian Government issued Statutory Instrument 55 of the Bank of Zambia (Monitoring of Balance of Payments) Regulations, 2013. The new SI 55 came into effect on the 1st of July 2013. The regulations are applicable to a number of parties including financial service providers licensed under the Banking and Financial services act, any importer of goods or services exceeding US$20 000, foreign investors and local investors who invest outside Zambia, to name a few.

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Managing portfolio companies most effectively

Africa Brief: Angola stock exchange, Dangote’s planned investment, Egypt’s borrowing costs and more

Angola has delayed plans for the start of stock-exchange trading by a year to 2016, with a futures and commodities market in Africa’s second-biggest oil pro­ducer set to open a year later. Angola expects its stock exchange to have a market value of 10% of gross domestic product within 18 months of its startup, he said. Angola’s largest banks, which include Banco Angolano de Investimentos and Banco de Poupanca e Credito, as well as cellphone companies Unitel and Movicel Telecomunicacoes, are expected to list on the exchange.

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The history of the KPMG Africa Conversation Series

The KPMG Africa Conversation Series was launched to create a platform where we could ‘host’ panel discussions aimed at Pan African business issues. As a leading audit, tax and advisory firm, KPMG is well positioned with a broad base of expertise, to share insights drawn from business, government, and academia in order to better understand the African context.

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KPMG Barometer reports continuous decrease of fraud risk

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 …

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Investing in Africa: Part Two

Investment in Africa, and developing the perception of Africa as a promising investment destination, is key to the continued growth, development and success of the region …

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Africa Brief: Zambian bank sees cellphone potential, Mauritius growth, Egypt fuel shortages and more

Zambia National Commercial Bank (Zanaco), which is adding 800 new customers daily, sees further growth by offering cellphone transactions to the almost two-thirds of potential clients in the country who have no bank account. Lenders in Africa’s biggest copper producer have benefited from the economy expanding at an estimated 7.3 percent last year, according to Bank of Zambia data.

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Mobile technology

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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High Growth Markets magazine – Unleashing Africa’s potential

Ways private equity firms can genuinely add value

As previously highlighted, private equity returns continue to outstrip quoted shares and it is certain that operational improvement in portfolio companies is a key component of value creation. Of our sample, 63% had been involved with a private equity-backed business which was subsequently sold and, of these, 77% had been sold for a profit.

According to the survey, the most important contributors to the value uplift were operational improvements and sales growth. Leverage and growth through acquisitions were much less important; highlighting perhaps the reality of the more difficult funding climate.

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Incredible growth of Kenya’s beer market

When the going gets tough: Managing underperforming investments

Most of the seasoned executives and non-executives interviewed for the survey had experienced situations where a business underperformed against plan. When the going gets tough, the relationship between management and private equity backers can come under strain.

When this happens, private equity directors naturally become concerned at the potential threat to the value of their investment and need to be very aware of how their skills can help, rather than make things worse. The non-executives and executives interviewed for this research suggested constructive actions that private equity directors could take to help address underperformance.

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private equity

Private equity executives and operational or industry sector experience

The results of our research show a high degree of consensus on this topic, with private equity directors’ lack of operational or management experience seen as a weakness in the way they interact with portfolio companies. Over 70% of those interviewed said that having managerial, operational or sector experience would give private equity executives more insight into the reality of running a business and a greater empathy with management.

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