Tag Archives: Investors
Investors: Latest News
Kurt Davis Jr., 4:31 pm AFKI Original
Betting on oil and gas prices these days is part-art and part-fun for bankers and investors, but major oil giants Total seem to be backing East Africa. Numerous pipelines for oil and gas are under construction across the African continent, and may be something for investors to monitor closely. Gas is the third largest fuel source in the global primary energy mix and the second largest source in power generation, contributing 24 percent and 22 percent to each market respectively.
Peter Pedroncelli, 3:54 am
Naspers, Africa’s biggest company by market value, is set to approach American and British investors to discuss a bond issue in an effort to continue the expansion of their online businesses and interests through more acquisitions. Cape Town-based Naspers is a global internet and entertainment group that has built a reputation as one of the largest technology investors in the world. It owns stakes in numerous international companies including Multichoice, ShowMax, Mail.ru, Flipkart, PayU, Konga, Takealot.com, OLX and Chinese investment holding company Tencent, giving Naspers a market value of around $90 billion.
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.
Tom Jackson, 8:35 am AFKI Original
Fresh from tech achievements M-Pesa, iHub and Ushahidi, Kenya in 2013 launched a $14.5B project to build Konza Techno City, a large tech hub planned outside Nairobi. Four years later, funding for Kenyan tech startups is in freefall. There have been few recent notable tech success stories and Konza City seems further away than ever. Investors have been wary to put up money until they have assurances from the government on reliable low-cost energy, water, plans to limit traffic and prevent slums from being built near Konza.
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, 6:00 am
The number of wealthy South Africans looking to attain U.S. investment visas more than doubled from 2014 to 2015, with many considering the benefits and advantages of having an exit plan during economic and politically unstable times. Recently released data revealed that South African demand for US EB-5 visas, which enable investors in American companies to obtain a green card, increased noticeably since 2014. A U.S. EB-5 visa can be attained by investing at least $1 million (or $500,000 for projects in a “targeted employment zone”) and creating more than 10 full-time jobs in the U.S. within two years.
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.
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