Tag Archives: Investors
Investors: Latest News
Reuters, 9:48 am
The pool of potential buyers is shrinking that Barclays’ can sell shares to in its African business. Some institutional investors, including pension funds, do not allow them to hold an asset that’s sliding on credit ratings. Barclays is struggling to find one strategic buyer that will satisfy South African regulators and is looking to sell its remaining 50% stake in chunks. More than 80% of its revenue is in South Africa. “Banks are paying the price for political uncertainty that we’ve seen in the country over the past two weeks,” a fund manager said.
Global Risk Insights, 4:15 pm
Investors continue buying Nigerian bonds despite economic recession for the first time in 25 years, and urgent calls for reform. In March, high-profile investors competed on the London Stock Exchange for Nigerian debt, a 15-year $1B eurobond issued while President Buhari was being treated in London for an undisclosed illness. S&P affirmed a stable economic outlook. If Buhari leaves office abruptly, the administration’s gains in the fight against Boko Haram could be reversed, an analyst said. The president’s mystery illness is generating uncertainty.
Staff, 6:40 pm
South African President Jacob Zuma has emptied his cabinet of his critics. Now that he has collaborators in all key cabinet spots, we know the country’s path if he stays in power. South Africa will move ahead with a deal for a large number of Russian nuclear plants. Property rights for farmers and mines will be further diminished so that Zuma allies can participate in once-thriving South African industries now in decline because of a lack of business confidence. Foreign investors will look elsewhere, and South Africans will move their money out.
Reuters, 12:25 pm
Fitch said Zuma’s recent cabinet reshuffle will likely result in new economic policy. Downgrades to junk — first by S&P on Monday and today by Fitch — could see South Africa fall off some global bond indexes. This may force international funds that are prohibited from holding sub-investment grade securities to sell. There is still is a huge wealth gap between blacks and whites, Zuma said in his SONA address. Zuma’s presidency has been riddled with corruption accusations and money-related scandals. He has called for radical economic transformation.
Kurt Davis Jr., 5:44 pm AFKI Original
Africans are demanding more meat in their diets, but consumption may be limited because there are not enough commercial livestock owners producing affordable food. Firms are gobbling up arable land, not just for crop production but also for livestock and cattle. Investment shops are slowly redirecting capital to this subsector of agriculture. Nigeria is in tough times, but people still have to eat. About 45% of rural households own livestock, and meat consumption is strongly correlated to livestock ownership in Nigeria. Fewer than 10 percent of livestock owners function as a business. Most are just supporting the household livelihood.
Reuters, 1:01 am
Gordhan is leading a team to London, Boston and New York provide an update on the most recent South African developments, “engage constructively with investors and share the government’s thinking behind its’ latest policy proposals.” Investors are concerned about rising political tensions in the ruling ANC, which is due to vote this year to replace President Jacob Zuma as ANC leader. For investors, Gordhan is the face of stability. Talk that Zuma might fire him has rattled financial markets.
Kurt Davis Jr., 10:24 am AFKI Original
Mauritania requires no royalty payments, which is not the norm. This is a benefit for oil, gas and mining explorers anxious about paying royalties when commodity prices are unpredictable. Mauritania’s corporate income tax rate is relatively low at 25% — a plus in a region where the tax and fiscal systems can change any investor’s outlook on risk and reward. Large government irrigation projects have aided agricultural production in the desert. Israeli technology and cropping strategies have had some success in other parts of Africa. There is potential here, but it requires investment in technology — not always a priority in agriculture.
Staff, 9:40 pm
Crowdfunding has been steadily gaining traction in Africa over the past decade. There are 57 crowdfunding platforms on the continent — most designed to serve local consumers and support projects in the host country only. Still, crowdfunding in Africa is limited compared to other regions. In 2015, the African crowdfunding market amounted to about $70 million, less than 1 percent of the global market. Investors and African entrepreneurs who use crowdfunding are operating in an unregulated space, at least in most African countries.
Kurt Davis Jr., 3:41 pm AFKI Original
Sub-Saharan African banks are late to the party. More than 75% of Africans lack access to traditional banking. Fintech offerings with the most potential are the ones that address the unbanked and underserved. Addressing Africa’s poor is impactful and a money maker, but it’s also time-consuming — something to consider if you want a quick return. Africans may be quick to try a mobile app or technology but end users are not always quick adopters. Here are five sub-Saharan markets with the most opportunities in fintech.
Dana Sanchez, 3:27 pm AFKI Original
With investors showing increased interest in African equity and bond markets and through direct investment, data issues are getting more urgent. Accurate and transparent statistics are essential indicators of economic potential, economists say. African countries generally fail to accurately record the size of the informal economy which could account for up to 62.7 percent of GDP. Three of the 10 countries listed here are expected to see their GDPs decrease in 2016. For others, it’s still Africa rising. Here’s what we know.
- Real Estate