As the second half of 2017 comes into focus, entrepreneurs and private equity managers alike want the narrative in investor circles to change regarding sub-Saharan Africa and fundraising opportunities. Investor sentiments remain that sub-Saharan Africa is still rebounding from the economic challenges of 2015 and 2016, but the focus for entrepreneurs and private equity managers should be on the oil importers and emerging Francophone Africa.
Oil & Gas: Latest News
Kurt Davis Jr., 12:01 am AFKI Original
African bond investors are laying the rules for 2017 after a tumultuous 2015 and 2016. Senegal’s $1.1 billion Eurobond launch earlier this month establishes the parameters. The offering – more than eight times oversubscribed – demonstrates investors will reward African countries for growth and political stability. But what many African sovereign bond issuers will have to consider is how big yields could become. In some corners of the continent, bankers may start to ask if there will be a penalty for those holding significant undisclosed debts.
Peter Pedroncelli, 5:44 am
The London Stock Exchange has committed to raising capital for Kenya’s energy industry, with the first ever memorandum of understanding signed between the London bourse and the East African government. The agreement was signed by Charles Keter, Kenyan cabinet secretary for energy and petroleum, and Nikhil Rathi, chief executive officer, London Stock Exchange plc. The memorandum sets out the commitment from both sides regarding the raising of funds to benefit the country’s energy industry, through public market equity and debt listings.
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, 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, 7:57 am AFKI Original
Many of the countries with the poorest access to electricity are in Africa, with around 625 million people in sub-Saharan Africa devoid of any access to electricity whatsoever. Due to issues such as insufficient capacity, poor reliability, and high costs, only around 32 percent of the population within sub-Saharan Africa have access to electricity. We take a look at 12 Sub-Saharan African countries with the poorest access to electricity.
Kurt Davis Jr., 2:00 am AFKI Original
Short-term volatility and uncertainty in the African growth story create opportunities for hedge funds. Hedge funds generally operate more flexibly than private equity, and they have the creativity to generate bond-like returns that outpace inflation. Critics say hedge funds have limited liquidity in an opaque world. The riskiest play — but with big returns — is in agriculture and land. Where land is for sale in Africa, investors are making a play for a limited resource, especially when it’s arable, ripe for production or ideal for commercial and residential construction.
Peter Pedroncelli, 3:25 am AFKI Original
Many of us take access to electricity for granted, but only two out of every five people in Africa have decent access to energy to power lights and other electrical appliances throughout the day. Around 625 million people in Sub-Saharan Africa have no access to electricity, according to the International Energy Agency. We take a look at 12 Sub-Saharan African countries with the best access to electricity.
Dana Sanchez, 10:10 pm
Luanda is still the world’s second most expensive city for expats after Hong Kong, but rent for office space fell almost 50 percent in the past two years. Demand has virtually ground to a halt in the region’s top oil-producing country. Rent has has also fallen for office space and luxury homes in Nairobi, where there’s an oversupply. Kenya became a hotspot for oil and gas exploration in 2012. With the price of crude down more than 50 percent since mid-2014, Nigeria, the region’s second-largest oil producer, is in recession. One bright spot: industrial space rent is rising in Kenya.
Kurt Davis Jr., 2:33 pm AFKI Original
Investors are strategically betting on the upside in Francophone Africa due to strong economic growth rates and a stable CFA franc. Lusophone Africa also presents opportunity. Low assets prices have replaced the exorbitant numbers of the oil-and-gas heyday, particularly in Angola and Mozambique. Debt restructuring can restore some confidence in Mozambique’s economic system. Private investors are finding a government more willing to deal on better terms, and companies that are pricing assets at fairly digestible prices.
Kurt Davis Jr., 10:13 am AFKI Original
The Anglos have an apparently insatiable investment appetite for the region. Gabon will no longer fly under the radar after Washington, D.C.-based Carlyle Group — the world’s largest private equity fund — purchased Royal Dutch Shell’s onshore assets in Gabon for $587 million. Petroleum services, infrastructure and timber are rising on the radar for crafty investors in Gabon. Financial services and ICT too. Gabon is a stable provider of services and networks to neighboring countries. Here are six other Francophone African countries investors are looking at.
- Real Estate