Anna B. Wroblewska
Anna B. Wroblewska, 3:55 am
Barclays PLC has the lowest Tier 1 capital ratio of the five major British banks, and its shares are down nearly 30 percent year to date. Over five years, shares are down nearly 50 percent. More conclusive plans are expected around March 1, when the bank announces annual results. Some have read the Barclays offering as an ominous sign of a wider reversal in investor sentiment towards the region as it struggles to cope with China’s slowdown, the possibility of recession in South Africa, and falling oil and commodities prices.
Anna B. Wroblewska, 1:49 am AFKI Original
Truworths’ recent decision to pull out of the Nigerian market. The South African retailer closed its last two Nigerian outlets in January, bringing an end to an expansion experiment that was already a loss-maker three years ago. It follows in the footsteps of Woolworths, another South African chain that closed its nascent Nigerian operations in 2013. On the other hand, retailer Shoprite just celebrated 10 years in Nigeria
Anna B. Wroblewska, 12:23 am AFKI Original
African private equity attracts a lot of attention, but its weight in the global private equity market is still small. Last year, funds focusing on the region raised $4.2 billion, over twice the annual average of the preceding five years, according to the Emerging Markets Private Equity Association. But global private equity flows totaled $486 billion in 2014, according to Preqin, meaning that the African market represents less than 1 percent of the total.
Anna B. Wroblewska, 7:58 am AFKI Original
Much has been made of African Eurobond debt levels. After a period of strong demand for yield-hungry investors, many African governments now sit with large amounts of dollar-denominated liabilities and a trifecta of global economic issues: a slowdown in other emerging economies, particularly China; a strong U.S. dollar; and a weak commodities market.
Anna B. Wroblewska, 6:28 am AFKI Original
But buyouts are only one slice of the African private equity market, and funds looking to diversify into Africa have more to worry about than the potential pricing risks posed by their competition. “You always have competition,” Romain Py, executive head of transactions with African Infrastructure Investment Managers, told AFKInsider.
Anna B. Wroblewska, 4:25 am AFKI Original
With so many businesses in Africa headed by women, it is only natural that this enterprising spirit would pervade the ranks of the investment world as well. The future of African business and private equity, then, should be increasingly female. There is, of course, progress to be made, but the consensus is that African women are poised for the challenge.
Anna B. Wroblewska, 4:55 am AFKI Original
Private equity financing is not easy to come by, even in a market as hot as Africa. The competition for funding is fierce, and the way the numbers play out is part of the bottom line. Financing women-led businesses in Africa thus presents a challenge. While African female entrepreneurs are as avid as any other entrepreneurs on the continent, their businesses tend to stay small.
Anna B. Wroblewska, 3:32 am AFKI Original
Islamic finance is expanding globally, and Africa seems a natural outlet for that growth. With low access to banking and a huge need for finance, Africa presents an interesting outlet for Islamic finance and banking institutions. Africa, like the Middle East, has relatively low levels of financial inclusion, similarly to the Middle East, and a significant minority of Muslims. To find out if Islamic banks could fulfill an unmet need, a group of International Monetary Fund economists asked whether these banks could help foster financial access and conducted a study to find out.
Anna B. Wroblewska, 1:38 am AFKI Original
The financial crisis spurred rapid growth in Eurobonds. As interest rates dropped in the developed world, investors began hunting for higher bond returns further afield. African sovereigns were looking to finance their own growth and development, and a market was born. But a recent report claims Eurobonds present a looming threat of $11 billion in potential losses due to currency risk.
Anna B. Wroblewska, 11:20 pm AFKI Original
The International Monetary Fund (IMF) authorized a loan of about $700 million to the Kenyan government recently. Now, when one hears “IMF” and “loan” in the same sentence, the natural reaction is to wonder whether the country in question is under duress. So, should investors worry that Kenya is under pressure? Quite the opposite.