Many African economies could use an infusion of cash into their agricultural markets at the exchange entry point. Liquidity is vital to further stimulate market activity in Africa, especially in the agriculture sector, where 70 percent of Africans make a living. Many African countries do not have agricultural commodity exchanges (or any active trading market) and effectively lack the liquidity and incentive to spur more cash inflow and investors into the sector.
Markets: Latest News
Peter Pedroncelli, 6:38 pm AFKI Original
Africa remains a continent with great investment potential, and African economies continue to make efforts to attract investors from around the globe. With a population of over one billion people and rapidly growing middle class, Africa offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction, and manufacturing, amongst others. Here are the 12 most attractive African economies to invest in for 2017.
Tom Jackson, 3:26 pm AFKI Original
Startups innovate much faster than mobile operators but they lack the wide reach — and customers — that more established companies have. Mobile operators and startups in emerging markets should work together because collaboration could be mutually beneficial, according to a new GSMA report — “Opening Doors: A Start-Up’s Guide to Working With Mobile Operators in Emerging Markets.” Some mobile operators are openly listing their API documentation and integration processes, and are willing to listen to startup founders.
Peter Pedroncelli, 9:18 am
Norwegian Internet browser Opera Software has announced plans to invest $100 million in Africa’s digital economy over the next two years, as the company aims to consolidate its most robust market. The investment will be used to develop artificial intelligence that delivers Africans customized and localized content, while continued efforts will be made to reduce data costs by around 90 percent. The goal is also to grow African businesses in partnership with African tech companies. It is envisaged that Opera will bundle in third-party services that provide mobile payment and improved data features through the web browser.
Peter Pedroncelli, 4:39 am
South African telecommunications giant Vodacom is in the process of acquiring a majority stake in Kenya’s largest company and major East African telecoms firm, Safaricom. The announcement was made on Monday, with a proposed 34.94 percent indirect stake set to be bought from the Kenyan government. The stake is worth 284 billion Kenyan shillings or around $2.76 billion, based on Safaricom’s current share price on the Nairobi Securities Exchange.
Kurt Davis Jr., 5:03 pm AFKI Original
The story line in 2017 is buy undervalued assets, especially those with massive upside — no surprise. The surprise, however, may be looking for that opportunity in the Democratic Republic of the Congo. Kabila is still in power despite his term of office ending. Mineral prices have been low and hurt local mining companies. Budget cuts are a big topic in local politics. The DRC, like one or two other countries on this list, is worrisome on the surface. But there are opportunities in the government’s desire to strengthen private-sector investment.
Peter Pedroncelli, 5:53 am
Cape Town has been named the best business tourism destination on the African continent once again, a ranking produced by the International Congress and Convention Association (ICCA) revealed. The Mother City is now considered the 39th best business tourism hub in the world, having improved last year’s ranking by 15 spots. In the last financial year, the city secured 33 new bids with an estimated attendance of 28,000 delegates and an estimated economic impact of around $31.7 million, while conferences over the past six years have had an estimated economic impact of more than $112 million.
Peter Pedroncelli, 6:09 am
Nigeria is looking to invest in plans to expand electricity generation and capacity with a proposed $5.2 billion loan from the World Bank, thereby boosting economic recovery following the country’s first contraction in a quarter of a century. Nigeria’s power, works, and housing minister Babatunde Fashola has identified the loan amount as a requirement in order to address the issues that the country has in terms of distribution of power, transmission-capacity and poor access to electricity in rural areas. These issues have a knock-on effect for the economy, and addressing these would allow for improved electricity capacity for Nigerian private and public enterprise
Peter Pedroncelli, 4:18 am
In an effort to attract foreign direct investment back to the country, Egypt has passed a law that is designed to cut red tape and make conducting business in the country far easier. Along with reducing bureaucracy for new business ventures in the country, incentives have been created in order to attract businesses to return to the North African nation. Egypt’s economy has been struggling in the last six years since the 2011 uprising that saw Hosni Mubarak overthrown as Egyptian president.
Tom Jackson, 9:58 pm AFKI Original
TerraPay is the latest mobile payments platform to enter the crowded East African market with its launch in Tanzania. The challenge for the market lies in navigating regulatory hurdles from one country to the next, an expert said. Interoperability has the potential to unlock intra-African mobile remittances and could be key to promoting cross-border trade. It is expected to overcome challenges to scale and facilitate micro-transfers across borders, a common theme for Africa’s low-income population. Expect to see some consolidation in the market.
Staff, 9:33 am
The African Business Angels Network (ABAN) has announced it will host the fourth edition of its African Angel Investor Summit in November, with this year’s event moving to Cape Town for the first time.
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