It’s Africa’s turn for investment, but where in Africa is best?

The eyes of the world are on Africa, with many CEOs believing it to be the site of the next big wave of development. As many as seven of the 10 fastest growing economies in the world are in Africa, and there is a huge population base as well as great mineral wealth.







Numerous multi-nationals have established bases here, but while others are itching to get in on the action too, they are delaying, unsure where exactly to sink roots first. Executives want to know which countries or region promise the best investment, but with 54 countries and 30m square kilometres of land this is not a simple question with a tidy answer.

Regional trade blocs

Africa has witnessed myriad political and economic liberations, in the course of which trade relationships between countries are established, broken, and re-established. While many African countries show tremendous growth, relations with next-door neighbours still count very much in the quest for stability and sustainable growth.

The continent has a number of functioning regional trade blocs. These are certainly needed as only a few nations have stable and sufficient infrastructure, connectivity, raw materials, labour, land mass and customer base when operating in isolation. The three most successful of these trade blocs are the East African Community (EAC), the Common Market for Eastern and Southern Africa (Comesa), and the Southern African Development Community (SADC).

While Comesa is the oldest and largest trade bloc and the EAC is the youngest and smallest, the SADC is the most integrated of the three. While these blocs also collaborate under the African Free Trade Zone (AFTZ), progress with this larger trade bloc is slow; for the next decade or so all three blocs will therefore remain relatively autonomous entities. At present the SADC is the most successful trade coalition, but the next spurt of economic growth will occur in the other two.

 

Comesa

Of all the various African trade blocs Comesa has the largest number of emerging economies. The group is primarily focused on building regional infrastructure, particularly through the Eastern Corridor.

Language is one of its biggest obstacles, there being so many different official languages and dialects among the 19 member nations. It’s a challenging task to achieve efficiencies from this diverse set of countries.

EAC

The EAC, on the other hand, is a relatively small trade bloc, consisting of just five member nations, and it enjoys much greater integration and collaboration. The roughly similar stability and maturity of its countries in terms of their economies, politics and publics makes the EAC a favourable trade bloc for international commerce.

In terms of supply chains, the EAC still fares better than Comesa. While Comesa has the resource base, the slow pace of trade between its member countries is a matter of concern. The delaying customs setup is another, and the unavailability of technology and skills is yet one more. By contrast, technology among the EAC’s member countries is better and more uniform. Moreover, the growth rates of various sectors in the EAC (led by agriculture, then manufacturing and services) are among the strongest on the continent.

Compliance is an area of concern among all three of the blocs, and little as yet has been done to address this. But apart from this, the EAC is the most attractive destination for business, with Kenya in particular offering good rewards.

This article first appeared on the KPMG Africa Blog.

Tips for African companies looking to do business in Dubai

Dubai in the United Arab Emirates (UAE) has been positioning itself over the years as a strategic place to set up business to access global markets.

 

 

HE Hamad Buamim, director general of the Dubai Chamber of Commerce and Industry

Richard Harris, president of the South African Business Council (SABCO) in the UAE, told How we made it in Africa that South African companies and brands looking to become international players should consider setting up their headquarters in Dubai.

“If you think about it, South African companies can come and set up a branch here and access not only North Africa, but indirectly into Europe and the Asian [markets],” said Harris. “So if you look at it logistically and take Dubai as the centre of the world, and look at where you can go to on a six hour flight, it makes sense to have an operation here as opposed to flying from South Africa up the way the whole time. So there is business sense in opening an operation here.”

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According to His Excellency Hamad Buamim, director general of the Dubai Chamber of Commerce and Industry, a number of companies have successfully used Dubai as a hub to access African markets. For example, Nestle, Louis Dreyfus, one of the world’s largest commodity traders, and MiDCOM Group, the largest Nokia distributor in Africa and the Middle East region, all based their Africa office in Dubai.

“At the same time, African entrepreneurs seeking expansion into European and American markets can use Dubai as a base,” Buamim said earlier this year. “Dubai is a gateway to Africa as the Emirate’s close proximity and business-friendly climate is an ideal hub for the continent… We envisage developing our existing trade relationship by encouraging more African companies to use Dubai as a base to trade with Europe, Asia, the Middle East and North America.”

This month, the Department of Tourism and Commerce Marketing of the Government of Dubai hosted an event in Cape Town to promote Dubai as an attractive place for Southern African companies to set up business. Alongside the advantage of Dubai’s geographic position and access to world markets, a number of other benefits were highlighted for African businesses.

According to Wendie White, director of Dubai Tourism in Southern Africa, Dubai’s political and economic stability can provide companies and business owners with a sense of security.

“The [Middle East] region has been through some tough times lately but the UAE is very stable,” she emphasised. “Politically it is very stable, there are no issues there, and also the economy is free. It has been kept open and free to attract investors into the region.”

White added that Dubai’s world class infrastructure means it is easy to conduct business, and the global city, with a large expat population, offers a high quality of life for foreigners who have moved there with their families. “From first class hospitals, schools, shopping centres, hotels, conference centres and manufacturing areas, it really is world class.”

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Dubai is also one of the top export centres of the world and has a rapidly developing manufacturing sector. The city is known for its free zones which can offer a number of economic incentives for businesses such as 100% business ownership, tax free environments and no trade barriers.

Agriculture also provides a number of opportunities for African businesses in Dubai. According to 2011 statistics, South Africa was the 13th largest supplier of Dubai’s food imports.

However, in order to ensure a good business relationship between African and Emirati businesspeople, White suggested seven tips to keep in mind.

1. Educate yourself on Islamic culture

“It’s important to remember that the UAE is an Islamic country. They are very liberal compared to other countries in the area but they are still Islamic so it is a good idea to have a little bit of an understanding about the Islamic culture,” suggested White.

Business attire is typically formal, such as a suit and tie for men. While the UAE does host a high population of Western expats, it is respectful for women to dress conservatively, not showing much bare skin and not wearing short skirts and low cut tops.

2. Drinking alcohol is not a custom

Alcohol is not part of Islamic culture and it is therefore not custom to serve alcoholic beverages at business functions with local businesspeople. Alcohol is served at many international hotels but is not available everywhere.

“We always say get used to drinking coffee and tea. It’s very common when you have a business meeting that you are served Arabic coffee or a very nice tea and it’s very polite to accept it,” White said.

3. Take time to build a business relationship

“The Emirati people in particular work very well with you once they know you,” explained White. “It’s very much about getting to know you and very much about building a relationship before you start trying to do business.”

She added that it’s a good idea to take the time to visit and meet with Emirati businesspeople face-to-face to gain trust, prove sincerity and build up a relationship before asking them to sign contracts.

4. Make regular visits

White said Emirati people like to keep in regular contact with the people they work with and it is polite to keep them updated on business news and give them feedback following a meeting. She added that business updates should make use of tangible evidence or testimonials in an effort to strengthen a relationship based on trust.

5. Prioritise phoning to writing

“It’s always good to follow up with an email but people appreciate it if you speak to them on the telephone,” continued White. “If you can’t meet with them in person, speak to them on the telephone and don’t always communicate only in writing.”

6. Work on Sundays

As an Islamic country, Sunday is the first day of the week in the UAE. “So you have to be prepared to work and go to meetings on Sunday,” said White. “And then remember that Friday is the holy day, the day of prayer, the day that they don’t work.”

Foreign businesspeople should also be considerate of the fasting month of Ramadan.

7. Accept last minute invitations

“Those of us who have worked with people in the region know that it is not uncommon for us, in the same week, to be asked to go to Dubai for a business meeting. It is something that is acceptable in the region,” explained White. “So if you are asked to see them at short notice, please don’t see that as being rude. It is just something that happens… the advice is to try and make it because they will appreciate that.”

Source: http://www.howwemadeitinafrica.com/tips-for-african-companies-looking-to-do-business-in-dubai/31314/?fullpost=1

Practical tips for success in Africa

Mark Tunmer, CEO of financial services group Imara Holdings, tells us the secrets to the company's success. The BSE-listed company has a wide footprint in Africa.

What factors are driving the growth of your company at home and on the continent?
Our growth as a financial services group rooted in Africa is underpinned by a range of positive developments, including the growth rates achieved by many economies in sub-Saharan Africa, often above 5% a year, growing liberalisation of most  economies, the growth of the middle class, growing disposable incomes, growing demand for consumer goods and financial services, growing liquidity on some markets, growing share values, and the development of African institutional investors such as pension funds, insurance companies and asset management firms.

Another factor is growing awareness among ordinary Africans that provision has to be made for the future through savings, pension funds and other wealth-building instruments such as shares.
Growth can be quite dramatic. For example, in the year up to our fifth annual investor conference in Zimbabwe in early June the market capitalisation of Delta, Zimbabwe’s biggest brewer, rose from US$836-million to US$1.7-billion. Over the same period, the market capitalisation of the Econet telecoms group was up from US$677-million to US$1.1-billion. In the same period, the Zimbabwe Stock Exchange has registered gains of 39% in US dollars.

Gains of that magnitude indicate growing participation by equity investors in African listed companies and explain growing international investor interest in our markets.
Rates of growth and levels of sophistication vary tremendously across Africa. The South African and Zimbabwean stock exchanges have been in place for over 100 years while a stock market has only recently opened in Rwanda. Varying levels of development obviously affect the rate of growth of our own business and the prospects in individual markets.

What problems did you overcome to find success that you are enjoying in other African markets?
The fundamental challenge relates to education. At an individual level, it takes time to develop a proper understanding of the need to save and invest. Our offices in all markets engage in on-going shareholder education and commit to constant communication. At a corporate level, you do also confront a similar educational challenge. For a financial services business like Imara to grow, we need instruments in which to trade, meaning market liquidity has to grow.
For this to happen, more private companies need to list on the stock exchanges. However, family owners traditionally grow their businesses out of their own cash flow or borrow money from a bank. The alternative is to issue equity or raise cheaper long-term finance. This in turn means a commitment to transparency and full reporting to shareholders or new partners. This involves a seismic shift in the mindset of owners who might have held total control of their businesses for generations. It is a slow process. Patience is required. Education takes time.

Where do you see future growth for your company coming from, and how do you intend to leverage on these opportunities?
There are specific opportunities relating to developments in certain markets, for instance, the plan to open a stock market in Angola and, hopefully, the opening up of opportunities in financial services in Ethiopia. But, the strategic opportunity for future growth relates to macro-developments such as the realisation in many of the world’s financial centres that Africa represents the last great opportunity, from a low base, to achieve sizeable growth for decades to come. This realisation will tend to support the growth in foreign direct investment and in portfolio investment.

Clearly, oil and gas discoveries in East Africa and other parts of the continent will have sizeable impact, but we also see potential for substantial growth in the non-oil economy across sub-Saharan Africa. The growth of the African middle class will deliver knock-on benefits across the financial services industry as families save, contribute to pension funds or drive the continued growth of listed companies through growing demand for consumer goods and services.
We see this as a 20-year journey. Being well placed on the ground across Africa will enable Imara to identify opportunities at an early date and then offer appropriate solutions.

What do you look for when deciding which countries/markets to enter?
The criteria we use to decide which countries to enter differs from case to case. However, there are some common themes such as political stability and some evidence that government has launched programs to liberalise the economy or has made a firm statement of intent to begin the process of reform.
We also scrutinise the regulatory and legal framework within which we are expected to work. A key factor is the presence on the ground of good potential partners. The search for credible partners may take two to three years. We are firm believers in the need for deep understanding of local conditions and will not enter a market unless we have a strong local partner.

How do you compete and interact with foreign companies in Africa?
Our competitive advantage that has put us ahead of our foreign competitors is our presence on the ground. Every Imara professional, with only two exceptions, lives and works in Africa. Imara has direct representation in eight African countries and has strong links in another two through enduring relationships with local partners. Our researchers do not depend solely on desktop research. They take a bottom-up approach and speak regularly to the executives of African listed and unlisted companies. They visit factories, speak to the local banks and have first-hand knowledge of the markets they study. This level of understanding and our direct, local representation bestow a sizeable advantage versus foreign competitors.

What tips would you have for companies that are interested in the African market?
The need for patience cannot be stressed enough. Coming in as a total outsider can be challenging. Invest time in finding the right local partner.

You can’t achieve success from afar. A foreign investor looking to make a success of their investment should visit Africa, take time out to visit companies, speak to executives and local professionals and build a personal understanding of specific markets. Personal relationships count for a lot in Africa. You need to look people in the eye and make personal assessments for yourself.

Once you have developed better market understanding, commit to the long haul. Africa has boundless potential, but it will take time.IMARA is an investment banking and asset management group that operates in Angola, Botswana, South Africa and the UK.

By Nelly Nyagah, Frontier Market Network

China and Africa: a Strategic Relationship

China and Africa: a Strategic Relationship

China and Africa have always shared a common interest in business growth and it seems that Chinese investment in Africa is set to increase substantially, with extensive plans for the near future, which include companies in China intending to move abroad, according to the world’s top economists.

At the Asia Annual Conference recently, the focus was on the rise of Africa. At the conference, the secretary-general of the China Centre for International Economic Exchange stressed that this is the time for great co-operation between the two nations and that the emphasis was on quality as well as quantity.

Investment in Africa has exceeded $20 billion up to this point, and it is thought that this will increase further. Within the next five years, China hopes to invest $500 billion abroad, and a proportion of this will be within Africa.

The benefits of Chinese/African business

Importing Chinese equipment has been blamed for a ‘deindustrialisation’ of Africa recently, but it has been seen that if Chinese companies are able to use local equipment they do so and if they cannot because of a lack of availability, they import it as a cost effective solution.

Recruitment takes place locally in Africa, accounting for around 85% of employment within Chinese companies. In Zambia, the ratio of local to Chinese employees is thought to be more than 13 to 1.

Initiatives such as the China-Africa Economic and Trade Co-operation Zone and China-Africa Development Fund act to encourage interest and future enterprises in Africa, with investment at their heart. With Chinese manufacturing being outsourced to other countries due to rising labour costs, it makes sense for Africa to benefit from this initiative, which will help develop their business infrastructure.

As Chinese investment continues to rise, the U.S seems to be receding. In 2011, Chinese companies made up around 40% of the business contracts within Africa, whilst the U.S only accounted for 2%. This has led to western anxieties about the relationship between China and Africa, with accusations that China is its new colonial master.

In 2011 China made a gift of the African Union building in Ababa, costing $200 million. This was a public demonstration of its good will in Africa, although some saw it as more of a demonstration of China’s neo-colonial ambitions. The glass tower has primarily been seen to reflect a new Africa and the future of its business partnerships, as many see China as freeing Africa from its past.

Mutually Beneficial

China itself is quick to refute the new colonialism tag being attached to it. The nation claims that its business investments in Africa are mutually beneficial and that it has no interest in colonialism. Africa’s exports of oil, steel, minerals and agriculture have influenced the livelihood of the Chinese people. In return, China is providing Africa with technology and sought after products, with Beijing helping to improve infrastructures and the manufacturing industry in Africa. The term ‘a new type of China-Africa strategic partnership’ has been coined by President Hu Jintao.

China has developed training for more than 40,000 African employees and it has also provided 20,000 scholarships. The pressure is now on for China to invest money in African factories, rather than building infrastructures and importing machinery, so that African business can take a more independent stance. With many countries offering loans to African businesses to enable start-ups, including India’s $5 billion loan package in May 2011, the hope is that China will invest in local manufacturing plants to really boost the African economy.

Investment Opportunities

There is impressive growth in many sectors in Africa, such as petroleum and telecommunications. Cell phone usage is rising at a dramatic rate, more so than in Asia, and there is proof that the vast number of consumers can equal good profits. With a consumer base of over 900 million people, half of Africa’s population are eager for services and products. There are investment opportunities for small businesses in Africa that are beginning to be truly realised. In fact Africa offers the highest return on foreign investment than anywhere else, according to UNCTAD, the UN trade agency. Individuals and businesses are making the most of this growth and taking out loans for investment purposes, as well as business and life insurance, for a variety of uses. There are many offers available that allow individuals and businesses to compare life insurance deals before their ventures. This may be for small start-ups or for travelling to Africa to experience its business first hand. With Africa experiencing such growth in certain business sectors, and with China offering long-term enterprise partnerships, now is the time to invest in this nation and help to develop the local economy.

 

Is China Transforming Africa?

Jeremy Goldkorn:

The question is all wrong. China is already transforming Africa, the question is how China is transforming Africa, not whether it can. From the "China shops"-- small stores selling cheap clothing, bags, and kitchenware -- that have become ubiquitous in Southern Africa, to oil, infrastructure and mining projects across the continent, China's government, private and state companies, and individual Chinese immigrants are changing the continent that the west gave up on sometime in the 1990s.

 

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There are both very positive and negative aspects to the Chinese presence in Africa. I think arguments that China's involvement in Africa is a form of neo-colonialism are both simplistic and prejudiced, but there also plenty of people looking at Chinese economic and political ties to Africa through rose-tinted glasses. It is certainly refreshing for African countries to deal with an enthusiastic new global player with deep pockets and little interest in pushing an ideology. It is up to African political and business leaders to make sure that their own countries do not get a raw deal.

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Isabel Hilton:

Jeremy, I agree that China is already transforming Africa in hundreds of ways and that the Western response has verged on the hysterical at times. But there are also well documented instances of exploitation, illegal resources extraction and bad business practice, as well as any number of white elephant infrastructure projects that have fueled a negative response to the Chinese presence in many countries in Africa.

It may come badly from former colonial powers, but the fact is that China's operations in Africa in many cases are uncomfortably reminiscent of 19th and early 20th century colonial operations. In China's Silent Army: The Pioneers, Traders, Fixers and Workers Who Are Remaking the World in Beijing's Image , two Spanish journalists, Juan Pablo Cardenal and Heriberto Araújo, do a fairly heroic job of reporting on the Chinese presence around the world, asking repeatedly who benefits from China's activities. They interview Chinese traders and entrepreneurs at every level, as well as local employees of major Chinese corporations. What they observe is that Chinese companies, especially state-owned enterprises (SOEs), reproduce the same patterns of exploitation that are common in China. While the Chinese executive class is decently rewarded and lives comfortably, Chinese workers often suffer from familiar abuses, including exploitation and non-payment of wages; local workers complain of fourteen hour days, rotten food and wage rates far below local minimum standards, conditions that go some way to explain the persistent troubles that Chinese companies have experienced in, for instance, Zambia.

Other negative impacts include deforestation and over-fishing, the latter compounded by local corruption that threatens to log out supplies of hardwood in Mozambique and many other countries. China may not be responsible for local corruption, but too often Chinese operators benefit from and encourage it.

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Donald Clarke:

Jeremy makes a strong case that China is already transforming Africa, and I'll take his word for it that Africa with China is a lot different from Africa without China. A more pointed question might be, Will China's activities spur self-sustaining African development? That's harder to answer. Nobody has yet figured out the magic formula for development, but we know a lot of things that don't necessarily work: pouring money into a country, or having lots of people with an entrepreneurial spirit. Whether China's economic involvement will have different results from the economic involvement of other countries before it is still unknown.

I'm not too sure that deep-pocketed players with little interest in pushing an ideology are a good thing. Of course nobody likes those who "push an ideology" if it's put in those terms, but while it may be refreshing for African leaders to deal with a country that doesn't ask questions about corruption, human rights, or whether the money is just going to pay for more guns for the army and police, it doesn't necessarily follow that that's good for the country (i.e., everyone else there).

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Jeremy Golkdorn:

Unfortunately for this debate, I have not drunk enough of the Africa-China Co-Prosperity Sphere KoolAid to provide a strong rebuttal to the points made by Isabel and Don. They both point to real risks to African countries from China's growing presence.

I would, however, like to recommend a thoroughly researched, intelligent book that makes a strong case that China's presence in Africa is a net good for the continent: The Dragon's Gift --The Real Story of China in Africa, by Deborah Brautigam. You can also find similar, well-argued persuasions in some of the writings and interviews with Zambian economist Dambisa Moyo.

There is one aspect of the debate that can raise my hackles, and I believe many other people who identify as being from the "global South" feel the same. It's this:

As Africa slipped off the global agenda after the end of the Cold War, China has been the only prominent nation-player in Africa trying new ways of doing business and building infrastructure, investing money, getting stuff done. This has, at the very worst, brought much-needed hope that African countries might fund a different way of dealing with the world and leave behind colonialism and charity.

You can date the colonization of my own country, South Africa, back to the settling of Cape Town in 1652 by the Dutch East India Company man Jan Van Riebeeck. Europeans have had almost four hundred years of jerking Africa around. The Chinese have had about a decade. So to hear cries of "Chinese neocolonialism!" emanating from London, Washington, D.C., Brussels, Paris, and Amsterdam can sound like the most vile hypocrisy when heard through African, South American or Asian ears.

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A version of this post appears at ChinaFile, an Atlantic partner site.

There's A Lot More To Africa Than Famine And War

Recently I was flipping between several of the major TV news networks who were reporting a variety of stories about Africa. All were focusing exclusively on war and famine. Come to think of it, that's about all you ever see the major networks say about Africa. They rarely if ever report on African sporting events, positive government activities, or even normal African life.

Anyone who thinks about this predicament for even a moment would realize Africa is a huge continent made up of a wide variety of countries, regions, and peoples. Africa is about as diverse a place as you could ever imagine. While some areas are sadly embroiled in horrific problems, other regions are peaceful, pleasant, and offer their citizens a very rich life.

One thing most Americans never have the opportunity to learn about is Africa's wide offering of quality TV programs. Watching African TV can be a real eye-opener. They include soaps and dramatic series, side-splitting comedies, and a wide range of news and sports coverage. Realize that these programs reflect the values, sensibilities, and every day experiences of people who live in Africa. If you have little experience with African culture, watching these programs can really teach you about this fascinating part of the world. You'll gain insights into a side of the world you may not have known existed.

Thanks largely to a growing number of African immigrants in the United States who want to see the programs they watched in Africa, African-produced programs are finding their way to cable TV channels here. On any given evening you can watch popular series like "Things We Do For Love," "Sun City," and the hit comedy "Taxi Driver." Recently, the African TV Network I founded several years ago announced plans to expand program offerings to cable channels in the Baltimore and Washington DC areas.

This will make African programming available to large audiences of African immigrants, African-Americans, Caribean communities, and others who are eager to have access to these programs.

As with any new TV programming that appeals to a previously neglected audience, African programming lets advertisers reach a very large and active viewing audience that was not available before with standard TV programming. African programming is a win-win for both viewers and businesses.

See more at: http://www.isnare.com/?aid=64256&ca=World+Affairs#sthash.gfSwFv9l.dpuf Published at: http://www.isnare.com/?aid=64256&ca=World+Affairs

Africa's retail advantage is its young population

The inaugural World Retail Congress Africa, which closes today 6 November 2103 in Sandton, has highlighted a key challenge for the retail sector in its opening debates. This is that limited infrastructure and accessing rural communities however one of Africa's biggest advantages is its young population - 50% under the age of 20.

Herman Mashaba, chairman of the Free Market Foundation and CEO of Leswikeng Investments, spoke about the importance of encouraging and supporting entrepreneurs in Africa. He singled out South Africa's central bargaining labour legislation as arguably one of the most anti-business pieces of legislation. He said the fact that workers who are not unionised were bound by agreements between the labour movement and employers placed undue pressure on smaller companies in terms of the salaries.

He said that many local retailers in the township have to be considered to enable them to continue to trade and contribute to the success of the South African economy. As an unashamed capitalist, he abhorred socialist tendencies where government decides what is 'good' for its citizens and bemoaned the current social welfare system in South Africa as a disincentive to the majority of people to do things for themselves.

Veteran analyst Chris Gilmour from ABSA Asset Management said Africa's advantage was that it had a young population with 50% being 20 years old or younger, with Rwanda leading the pack in Africa's growth with GDP of 6.6%.

Panel speakers

David Kneale, CEO of Clicks Group, Paula Disberry, group director retail operations and international and Ebrahim Mohammed, commissioner of the National Consumer Commission, participated in a panel discussion about South Africa's regulatory framework in relation to retailing.

Andre Farber, executive VP of O Boticiaro in Angola highlighted the opportunities in Angola and explained how the company grew its footprint from 3 outlets to 15 in three years. He said the company, originally from Brazil, depended on local partners in Angola for its success.

Ramachandran Ottapath, CEO of Choppies in Botswana said the retailer aimed at having a significant presence in South Africa as part of its Sub-Saharan strategy. Choppies currently has nine stores in South Africa.

Jeremy Hodara, MD of Africa Internet Holding focused on the challenges facing retailers in the Nigerian market. He said the Nigerian online retail market was still in its infancy and cultivating trust in the online market was critical to success as consumers were wary of scams. Challenges with the infrastructure also affected the ability to operate successfully, as Nigeria does not have call centres or reliable logistics companies, which means that his online company has to do everything to get products to consumers. He also cited the lack of good middle management as a challenge in Nigeria.

Therese Gearhart, president of Coca-Cola South Africa said the company focused on insights to connect with consumers, particularly the youth, adding that the youth in South Africa were in touch with brands that help develop their communities.

Suzanne Ackerman, transformation director at Pick n Pay, said South Africans could not ignore where they come from. She said social justice is an important part of doing business and in addressing the inequalities of the past. She cited several examples of how the group supported emerging entrepreneurs, one of whom is a female pig farmer who supplies the chain.

Closing a successful first day, Raymond Ackerman, former CEO and chairman of Pick n Pay and the doyen of South African retailing was awarded a Lifetime Achievement Award by the World Retail Council. The elder statesman of retail said he still believed in the concept of giving as being central to doing business. He added that retailers have to think about their customers first ahead of profits, that way you always have the interests of your consumers at heart.

For more information, go to www.worldretailcongressafrica.com.

Eight reasons why foreign investors aren’t funding African entrepreneurs

Africa has been described as having an entrepreneurial spirit. However, many of these entrepreneurs have difficulty accessing investors willing to or capable of funding their ventures.

According to John Causey, an Africa investment and business specialist, a lack of local investors means many startups are turning to the international investment scene for funding. Causey, who was previously an associate at Morgan Stanley in the US before taking up a position at African-focused investment advisory firm Clifftop Colony Capital Partners, said investing in African startups is not always attractive to international investors.

He explained that it is important to understand the deterrents through the eyes of international investors who are looking for a high return on investment, not just a social impact.

“You are not going to be able to solve the problem until you see what the problems actually are,” he told an audience at AfricaCom in Cape Town, South Africa last month.

1. Exchange controls

Capital controls are enforced to keep money in a country and in South Africa, for example, strong exchange controls make it difficult and expensive for investors to move money out of the country.

“If you invest from overseas, if you want to pull your money out, if you want to sell the company, you are going to be subject to exchange controls and taxes and all this red tapes,” explained Causey.

This year, South African entrepreneur, investor and multi-millionaire Mark Shuttleworth said it cost him less to travel to outer space than it did for him to move his money out of South Africa. He reportedly had to pay a 10% exit levy of R250m (more US$30m at the time) for moving his fortune out of the country.

2. Understanding requires time and resources

Adequate understanding and investment in an African company requires on-the-ground assistance and time, and Causey said this can be expensive to achieve.

“Compounding that, the deal size in [South Africa] and some other African markets tends to be somewhat smaller. And why does that matter? Well, it matters because if you are flying to and from Munich, if you are spending three weeks here and might need expensive hotels and then you have to shoot up to Kenya and then you have to hire local people, you have to hire local attorneys… it’s very expensive to get that understanding so that is a huge problem.”

3. Small markets

South Africa’s GDP is roughly the same size as the US state of North Carolina’s GDP, according to Causey. “Even if they say your idea is going to dominate the South African market share, [and] even if you do, you are dominating a relatively small market on the international stage.”

4. Proven track record and few assets

Another problem, he added, is that there have not been many examples of large exits in Africa.

“People treat the Fundamo exit as if it’s a big deal but internationally it’s not a huge transaction. I think it was a $110m exit, which is nice, but you need to have a lot more of those to really attract investors.”

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Tsitsi Masiyiwa - The Millionaire's Wife Who Feeds 40,000 Children

Masiyiwa recounts a fascinating story. The year was 1996 and Masiyiwa and her husband, Strive Masiyiwa, were almost penniless. The couple was going through a rough patch, and they were struggling to feed themselves and their children.

“We were so broke. We couldn’t even afford to give our visitors tea,” Tsitsi Masiyiwa says in retrospect. “We were practically living from hand to mouth.”

But things hadn’t always been this way. Just a couple of years before, Strive Masiyiwa owned a thriving business. He had founded Retrofit Engineering, an electrical contracting firm that handled lucrative construction contracts for the government and had built a considerable fortune.

But his fortunes reversed in 1993 when he decided to establish Zimbabwe’s first independent mobile telecoms network to rival the government-owned telecommunications company.

At the time, the Zimbabwean Post & Telecommunications Corporation (PTC) was the sole provider of telecommunication services in Zimbabwe. When Masiyiwa expressed his interest in acquiring a mobile operating license and launching a substitute mobile telecoms network, the government threatened to prosecute him if he dared to pursue his plans. The Zimbabwean authorities denied him a license.

Refusing to bow to intimidation, he took the government to court, challenging the government’s monopoly on telecommunications and seeking the rights to operate a mobile phone company in Zimbabwe. It was a landmark case that lingered for close to five years, eventually finding its way to the Supreme Court.

“Our problems began when we sued the government,” Masiyiwa recollects. “You cannot sue the government and think things will always be right.”

During that period, the government, which was Retrofit’s biggest client, immediately called off its existing contracts with the firm. It had disastrous consequences for Strive Masiyiwa. Within months, he could hardly afford to pay salaries and he finally had to sell off the company’s assets to finance Econet’s legal battles against the government. Before long, the Masiyiwas’ funds had dried up, and they were on their wits end.

“So we were broke. In trying to understand what was going on around me, I began to do an intensive soul searching. Then I prayed to God and made a deal with him. I told God that if he granted us the license to operate the mobile phone company in Zimbabwe- and he made us successful, then I will help support as many poor people as possible for as long as I lived,” Tsitsi Masiyiwa recalls.

Tsitsi Masiyiwa, a deeply religious woman, took a step of faith along with her husband. “We went ahead and registered Capernaum Trust, a charity that we decided would give scholarships to needy children. It was an unpractical thing to do at the time, especially considering the fact that we had nothing. But as a Christian, you do unreasonable things,” she enthuses.

God probably answered her prayer because in December 1997 the Zimbabwean Supreme Court awarded Econet Wireless a license to set up a mobile telecoms company in Zimbabwe. The Supreme Court ruled that the government’s monopoly on telecommunications was in violation of a provision in country’s constitution that allowed for freedom of communication.

Econet launched its services in Zimbabwe in 1998. Growth was rapid. Within a few months of setting up in Zimbabwe, Econet became the leading mobile telecoms company in the country. It has maintained that trajectory in the last 15 years and has grown to amass about 10 million subscribers spread across Zimbabwe, Botswana, Burundi and Lesotho. Strive Masiyiwa is now Zimbabwe’s richest man.

As Econet began spitting out handsome dividends for her family holding company (which owns the chunk of Econet shares), Tsitsi kept her promise to God.

“I gathered as many orphans as I could find from all over Zimbabwe and I threw a party for them,” Tsitsi says.

Tsitsi regularly held party-like events in her home for orphans in which the children always ate to their fill. Many times, she visited the children in their orphanages, offering them food and personal mentorship. It was an exhilarating experience for her, but she felt it was not enough.

“I spent time with these children and I came to love them. I wanted to keep doing more for them, but I realized that it was not just enough to keep giving them fish. I had to teach them how to fish. I wanted them to grow up and fend for themselves and become successful people. I wanted them educated,” she says.

It was at that point that Capernaum Trust began in earnest, supporting orphaned and vulnerable children by paying their school fees, and providing funds for school uniforms and stationery. Strive and Tsisti Masiyiwa dug into their personal resources to fund these scholarships.

Today, the Capernaum Trust pays the school fees of over 40,000 students, whom Tsitsi calls “History Makers,” across the Primary, High school and Tertiary levels. Of that number, close to 3,000 of them are University students with some of them studying in the United States, South Africa and Australia, where the fees are usually much more expensive that in Africa.

In February, Tsitsi and her husband established the Ambassador Andrew Young Scholarship, a $6.4 million dollar scholarship fund that sends African students to attend the Morehouse College in the United States. The fund is named after Ambassador Andrew Young, a former United States Ambassador to the United Nations, who is renowned for his vanguard role in the international Civil Rights Movement.

Tsitsi is quick to emphasize that beneficiaries of their scholarships are not mere students, but “History makers.” And the connotation has a spiritual dimension to it. “Once an orphan comes on the program, he or she ceases to be an orphan because s/he now has a Father in heaven who empowers him/her to make history,” she says.

The Trust now has ‘History Makers’ in Zimbabwe, Burundi, South Africa, Lesotho and Swaziland, and Tsitsi says they are planning to take on more countries in their programme.

“We are most certainly planning to expand to other African countries. While setting up the Trust was in line with fulfilling my promise to God, it was also majorly driven by a desire to see major development and social upliftment in Africa.

“The Econet Group does business in many African countries and we are making money from these places. We have to give back. It’s only reasonable thinking that businesses give back to the communities in which they do business.”

While the Capernaum Trust traditionally provided only scholarships, uniforms, food packs and stipends, Tsitsi says they now also provide career guidance and medical assistance to its beneficiaries. It is a holistic intervention.

The Masiyiwas spend several millions of dollars every year from their personal resources in addition to financial support from Econet Wireless to support these philanthropic endeavors. Tsitsi politely declined to disclose how much it spends annually on these scholarships.

The Capernaum Trust is also generously endowed and it invests its resources in an assortment of sophisticated financial instruments and property. While the Foundation’s philanthropic work has had several successes, there have been a few disappointments.

“It’s not all roses. We’ve had cases where some of our girls got carried away and became pregnant out of wedlock, and then they had to drop out of school. We’ve had boys who left our programmes to head cattle and some girls have eloped to get married early,” she says.

But Capernaum’s success stories far outnumber its not-so-successful stories- a feat for which Tsitsi is thankful.

While the Capernaum Trust is Tsitsi Masiyiwa’s most popular philanthropic endeavor, it is far from her only one. Along with her husband, she is a co-founder of three other charities- the Christian Community Partnership Trust (CCPF), a charity that provides financial support for church and church organizations working in the least evangelized areas of rural Zimbabwe; the National Healthcare Trust Of Zimbabwe which provides financial support for medical drugs, human resources, transport in the event of a health crisis and the Joshua Nkomo Scholarship Fund – named after the late Zimbabwean nationalist which also awards scholarships to exceptionally intelligent Zimbabwean children. These four foundations are part of the Higher Life Foundation, an umbrella organization for all the charity efforts of the Masiyiwas. Tsitsi Masiyiwa serves as Executive Chair.

Why is Tsitsi Masiyiwa and her husband doing all this?

“We’ve been successful, and I feel that people who are successful have a responsibility to support initiatives that will fuel Africa’s growth and development,” she says matter-of-factly.

“Look around Africa, you’ll see that new millionaires are springing up everyday. It is good to create wealth, but along with wealth-creation must come a deep sense of responsibility. Africa’s rich need to collectively deploy their resources for the good of the people around them.”

Tsitsi Masiyiwa is now at the vanguard in urging rich Africans everywhere to give back.

This year she joined forces with some of Africa’s most prominent philanthropists such as Nigerian investor Tony Elumelu, Kenyan banker James Mwangi and Nigerian philanthropist Toyin Saraki to form the African Philanthropy Forum (APF), a regional affiliate of the San Francisco-based Global Philanthropy Forum. The group aims to build a community of African donors and social investors devoted to fueling Africa’s growth and development.

“Collectively, we will find the best, effective and most strategic way to pursue philanthropy in Africa,” she says. Originally published by Forbes.com

 

One smallholder's warning for the future of farming in Africa

 

Mama Sara is a farmer in Mbola in the Tabora region of western Tanzania. I visited Mama Sara in late March of this year. Like other smallholder farmers in the area, her farm plots were covered with a patchwork of stunted, sad-looking maize.

She told me that the rains have become so unpredictable in recent years that she no longer knows when to plant. Moreover, the soils on her farm have been degraded from years of growing the same crop in the same place with few to no inputs. To hedge her bets, this year Mama Sara planted four maize crops in the hopes that one might yield a healthy crop, a goal that seemed sadly elusive, despite her best efforts.

As a quick fix, some of Mama Sara's neighbours are planting tobacco as a cash crop. However, tobacco production is driving deforestation in the Tabora region and elsewhere in Tanzania, as trees are cut down to produce the charcoal needed to cure tobacco. On an afternoon walk, I stumbled upon an area of newly cut trees, which were soon to become charcoal. Among the stacked poles were several beautiful, valuable and huge mature mahogany trees. The farmers looking for a supply of charcoal had no idea of the value of those poles if exported to Europe or the US for furniture, boat construction or musical instruments.

Without question, African farmers need better yields and better profits. But this is only a piece of the bigger picture. How can smallholder farmers and African governments increase land productivity and well-being without destroying nature, the unseen support system for agriculture and for people?

Solutions to the challenges Mama Sara and others face will require a multi-layered approach. However, a lot of the existing knowledge of ecosystems and agriculture is local and scattershot. As such, policymakers, landowners and the private sector must make important land use and land management decisions based on a partial and incomplete understanding of the situation.

The simple truth is that the business-as-usual, sector-by-sector, siloed approach to decision making isn't providing the answers that smallholder farmers like Mama Sara need to forge resilient, sustainable livelihoods. To grow Africa sustainably, we need "business unusual".

This is why I took part in the Grow Africa Investment Forum during the World Economic Forum on Africa, to talk about Vital Signs – a new monitoring system that provides the metrics and indicators to change the way decisions are made for managing agriculture, ecosystems and human well-being. Vital Signs was designed and tested in partnership with the government of Tanzania in SAGCOT, the Southern Agricultural Growth Corridor of Tanzania, and in the Southern Highlands. It has also been successfully piloted in Rwanda, and is poised to launch in Ghana and Ethiopia.

In Africa today and worldwide, decisions about sustaining food production, protecting pollinators and safeguarding biodiversity, about water, and about meeting energy needs are not separate, independent decisions. They are interconnected. Everyone – from farmers and governments to donors and the private sector – needs a new, integrated approach to decision making. The planet must be seen as a system, not as an assemblage of separate, disconnected pieces.

SANDY ANDELMAN IS EXECUTIVE DIRECTOR, VITAL SIGNS MONITORING SYSTEM, CONSERVATION INTERNATIONAL. THIS ARTICLE FIRST APPEARED ON THE WORLD ECONOMIC FORUM BLOG.

 

Source: http://www.agri4africa.com/index.php?dirname=docs_02newsletters/00010newsletter.php&lookupArticleId=145

BY SANDY ANDELMAN

Africa’s Hidden Billionaires: Nigerian Banker Reaches Zenith With $1 Billion Fortune

There’s a new dollar-billionaire on the block, and he’s Nigerian.

Jim Ovia, 58, made his fortune providing financial services to Nigeria’s richest middle class. He is the founder and largest individual shareholder of Zenith Bank, a $4.5 billion (Market Cap) financial services conglomerate after a successful stint in finance in the United States.

Banking was always in Jim Ovia’s blood. Even before he completed his Bachelor’s degree in Business Administration from Southern University Louisiana as a teenager in 1977, he had already enjoyed a stint as a clerk in Barclays Bank, DCO (which now operates under the name, Union Bank). After obtaining his MBA from NorthEast Louisiana University in the United States in 1979, he joined International Merchant Bank as a financial analyst, subsequently rising to become a senior manager in 1987.

In 1990, he co-founded Zenith Bank in Nigeria. Within two decades, Ovia transformed Zenith from a small commercial bank into a fully-fledged financial services conglomerate with operations in Investment, Private and retail banking, staff strength of close to 4,000 people and assets in excess of $8 billion. He was Chief Executive of the bank from 1990 to 2010 when he was compelled by the Central Bank of Nigeria to step down following a directive limiting the tenure of bank chiefs to 10 years.

But Jim Ovia is still the largest individual shareholder of the publicly-listed bank. Through his own name, Ovia owns over 2.7 billion shares (which translate to an 8.75 percent stake in the bank). That stake is currently worth over $360 million.

In 2007, while he was still serving as CEO of Zenith, Ovia founded Visafone - a Nigerian mobile and fixed telecommunications provider. Visafone has become a runaway success. The firm has amassed a subscriber base of about 4 million and is worth at least $400 million according to data compiled by VENTURES AFRICA’s Intelligence unit and our Investment Banking analysts. Jim Ovia owns the company completely. Add these to Ovia’s ridiculously expansive real estate portfolio consisting of dozens of landmark commercial and residential properties in some of Nigeria’s swankiest neighbourhoods (such as The Civic Center in Victoria Island, Lagos) and Aquamarine, an exclusive boat club catering to Nigeria’s richest folks and Jim Ovia is conservatively worth $1.1 billion. A report by VENTURES AFRICA’s estimates, Jim Ovia is the fourth Nigerian to legitimately attain USD billionaire status after Aliko Dangote, Mike Adenuga and Folorunsho Alakija.

The Nigerian billionaire shows no signs of slowing down. Last November, Ovia’s newly-formed Quantum Luxury Properties signed a multi-million dollar deal with Marriott- the New York-based global hotel group to develop a 150- room five star hotel on the Ozumba Mbadiwe Waterfront in elitist Victoria-Island, Lagos. Construction of the property is expected to kick off later this year.

Ovia is as philanthropic as he is wealthy. He donated $6.3 million to assist the Nigerian government in its relief efforts for the rehabilitation of victims of the various flood disasters across Nigeria last year. He also runs the Youth Empowerment & ICT Foundation, a non-governmental organization which encourages young Nigerians to embrace information & communication technology (ICT) as a tool for socio-economic change.

Interview Zain Latif, An Investor Keen to transform the Lives of Africans

The answer for Africa’s underinvested health infrastructure. Mr. Will Mutenza the publisher of Promota magazine had a chance to meet Zain Latif, Principal of TLG Capital.  

Promota: There may be some folks who don’t know you so, if you had to introduce yourself, what would you say?

Zain: I am the principal of TLG Capital, a firm that focuses on frontier markets.

Promota: What is your background and what was it that motivated you to begin TLG Capital? Zain: To give some background: TLG Capital started in September 2009. But before that, I was an Executive Director at Goldman Sachs in the New Markets division focusing on Sub-Saharan Africa across all products. I joined Goldman Sachs from Merrill Lynch where I was involved in originating and executing a number of emerging market transactions in Africa.

Saudi Billionaire Al-Amoudi Plans Two Cement Plants in Ethiopia

By William Davison

Saudi billionaire Mohammed al-Amoudi, the biggest private investor in Ethiopia, plans to build two more cement factories in the Horn of Africa nation amid an improving investment environment.

The plants will add to the $351 million facility al-Amoudi’s MIDROC Derba Cement opened in December 2011, the 67-year-old investor said in an interview today in the capital, Addis Ababa. Derba Group, an amalgam of three Ethiopian companies owned by al-Amoudi, plans to invest $3.4 billion in Ethiopia over the next 5 years, the company said in March 2012.

“Africa’s opportunity lies in involvement of private sector working with stable and responsible government like Ethiopia,” al-Amoudi said in a speech at the African High-Growth Markets Summit in Addis Ababa. Continuing improvements in the business climate will probably to lead to a “great” increase in investment, he said, without elaborating.

Ethiopian-born Al-Amoudi ranks as the world’s 134th richest person, with a net worth estimated at $8.7 billion, according to the Bloomberg Billionaires Index. He is the second-richest person in Saudi Arabia, after Prince Alwaleed bin Talal. Ethiopia’s economy is projected to expand 7.5 percent next year, compared with an estimated 7 percent this year, the International Monetary Fund said in its World Economic Outlook in October.

Three farming companies owned by al-Amoudi developed 6,200 hectares (15,321 acres) of land in Ethiopia, al-Amoudi said. Elfora Agro-Industries, Horizon Plantations Ethiopia and Saudi Star Agricultural Development will have prepared an additional 160,000 hectares in the next 2 1/2 to 3 years.

“We are focusing on agriculture and industry,” he said.

Agriculture Projects

Horizon bought three agricultural projects from Ethiopia’s government for $59.4 million in April. The company plans to invest 400 million Ethiopian birr ($21 million) over the next two years in Upper Awash Agro Industry Enterprise, Gojeb Agricultural Development Enterprise and Coffee Processing and Warehouse Enterprise.

Saudi Star, a Derba company, has been unable to finance the completion of an irrigation canal at its 10,000-hectare rice project in the western Gambella region, the company said last month.

“There were certain problems which we are trying to solve,” al-Amoudi said. “Now we are getting in deeply and I’m going to follow it up myself.”

Al-Amoudi also announced that an “agreement has been reached” with London-based Hikma Pharmaceuticals Plc (HIK) to produce drugs in Ethiopia for the domestic market and export to Africa. He didn’t provide further details.

• 
  To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net
  


• 
  To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net
  

Source: Bloomberg

Redefining development equity in Africa

Following the completion of fundraising for the African Agriculture Fund (AAF), with total commitments of US$243m, and the first close of Pan African Housing Fund (PAHF), $41.5m committed to date, Phatisa discusses its role as an African private equity fund manager committed to development in Africa.

 

The African Agriculture Fund invested in the Goldtree palm oil mill in Sierra Leone.

Phatisa, a private equity firm founded in 2005, has over the past eight years developed deep investment roots across sub-Saharan Africa, now with a notable presence throughout the continent, operating from offices in Mauritius, South, East and West Africa.

Speaking on the firm’s commitment to Africa and its two sector-specific funds, Phatisa senior managing partner Duncan Owen says: “Development equity has always been at the heart of Phatisa’s investment philosophy. Food security and affordable housing are crucial issues across Africa and both of our funds are aimed at combating the chronic undercapitalisation in these respective sectors. The Phatisa funds behave much the same as traditional private equity (PE) funds by optimising operational efficiencies and maximising value on exit. However, we focus on sectors we know and understand so we are able to stimulate development in food and housing in Africa.”

Phatisa is single minded in its efforts to find investment opportunities throughout sub-Saharan Africa, aligning with the best of African businesses and building long-term sustainable value that will continue far beyond the life of the fund – leaving a tangible legacy for a more prosperous Africa.

The AAF, launched in July 2009, was developed on the principle of harnessing capital from diverse international sources to invest in Africa’s long term food security in a progressive and transparent manner. The fund’s investors are a wide-ranging institutional mix of US, EU and African development finance institutions, government agencies, development banks, commercial banks, fund-of-funds and private investors that have come together to bolster this truly continental effort to stimulate food production and consumption.

One of the fund’s most unique features is its innovative share structure; where DFIs offer ‘more commercial’ investors a preferred return. The fund has successfully brought together European DFIs and the Overseas Private Investment Corporation (OPIC), an independent US government agency – underlining the G8 vision of a shared initiative.

“Being at the forefront of development equity in Africa means having the right knowledge, experience and relationships. There isn’t an asset in agriculture in Africa we don’t know of and we believe this sets us apart in supporting development in Africa,” says Owen. “At Phatisa we consider development equity as more than simply maximising value on exit. It is about creating a balanced blend of PE and development finance. We strive to build assets on the ground; investments need to give the best possible return for our investors, but also the community in which these funds operate.”

Palm oil mill in Sierra Leone

The AAF’s first deal, which demonstrates Phatisa’s philosophy, was an early-stage investment in post-conflict Sierra Leone, building a new palm oil mill to service 8,000 outgrowers in the eastern part of the country. Construction and commissioning of the mill took 18 months under challenging circumstances. While the business experienced the usual teething issues associated with early stage investments, both the fund manager and investors have shown commitment. The medium-term view is to deliver returns in excess of 20% per annum.

Phatisa’s investment momentum has continued and, to date, the AAF has committed investments in excess of $90m from Sierra Leone in West Africa to Madagascar, far East Africa and six other countries in between, accounting for just shy of 50% of the AAF’s investors’ equity. This reflects a total of 10 investments across diverse sectors: primary farming, processing, inputs, fertiliser, protein production and fast moving consumer goods beverages.

“Since launch, AAF’s portfolio companies employ approximately 5,500 people and we have built relationships with 9,000 outgrowers and vendors across Africa. Supporting the need for food security in Africa, the AAF portfolio produces 54,000 tons of food and beverages and hopes to triple-fold this output amount within five years,” adds Owen.

The fund also has additional development attributes including a €10m Technical Assistance Facility, supporting capacity-building for small- and medium-sized enterprises, such as outgrowers, smallholders and bottom-of-the-pyramid distributors, with the capacity to spend up to $500,000 in each AAF investment. This grant facility is managed by TechnoServe, a not-for-profit organisation resident throughout Africa. A further development initiative is the $30m standalone SME fund (AAF SME Fund) investing in agri and food businesses with an individual investment limit of $4m.

Owen adds: “Given the make-up of the Phatisa senior team, who have a blend of development (largely ex-CDC) and commerce experience (Unilever, Coca Cola and Lonrho) in their DNA, it is hardly surprising that we have embarked on this journey. The evolving investment strategy of European DFIs has created a gap in the market for development equity – which supplements the DFIs who traditionally provide softer loans and the banks that provide secured debt, while the larger private equity managers have traditionally focused on generalist funds.

“We decided to concentrate initially on food production and housing in emerging economies. Managing funds focused on a particular sector meant that we could build a team with the relevant business skills and experience. Phatisa is willing to invest in early stage and brownfield investments, but is also attracted to leveraged management buyouts – empowering local management and providing exits for shareholders. Having said this, we are a PE fund manager and expect to deliver PE returns to investors. But development is also about making a positive impact in the communities in which we invest,” concludes Owen.

Source: http://www.howwemadeitinafrica.com/redefining-development-equity-in-africa/31945/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+HowWeMadeItInAfrica+%28How+We+Made+It+In+Africa%29: