Kurt Davis Jr.
Kurt Davis Jr., 3:43 am AFKI Original
The talk of distressed asset investing in Africa is growing. A total of $6.5 billion has been raised for African private equity from 2011 to 2016, according to the African Private Equity and Venture Capital Association (AVCA), with a total reported deal value over the same period of $22.7 billion for 900+ deals. In 2016 alone, 145 deals were reported totalling $3.8 billion. We explore the sectors offering the best opportunities for distressed asset investors.
Kurt Davis Jr., 5:19 am AFKI Original
The news last month from the International Monetary Fund (IMF) regarding sub-Saharan African growth has investors breathing a sigh of relief. The IMF expects sub-Saharan Africa to grow by 3.4 percent in 2018, up from the 2.6 percent in 2017. Some countries in particular are forecast to enjoy incredible growth in the region of 8 percent, with West and East Africa in particular looking attractive for investors.
Kurt Davis Jr., 3:07 am AFKI Original
Sub-Saharan Africa is home to the youngest population in the world, and educating these young people is a priority across the continent. By 2022, approximately one in four children may be enrolled in private schooling, suggesting that the time for investing in the sector is today. All that said, private investment in schools is still limited by capital and operational engagement from investors, but this is set to change.
Kurt Davis Jr., 4:55 am AFKI Original
The healthcare investment space is starting to hit its stride in Africa, with the sector finding significant partnership in private investors. The opportunity is vast, with many estimates placing the capital need for the sector beyond $25 billion. The healthcare space requires holistic approaches across multiple verticals, including insurance, primary care, and medicine/foods. with those able to bring quality products and services to those verticals able to benefit in terms of investment.
Kurt Davis Jr., 6:04 am AFKI Original
Today the airline industry in Africa is drastically different from a decade ago. The economic growth in the region and improved political stability underpin increased international traffic on the African continent, and perhaps it is time for Africa to have its own global private airline. Estimates place Africa as the third fastest growing region in this category, trailing only the Middle East and Asia Pacific.
Kurt Davis Jr., 6:40 pm AFKI Original
Africa’s two biggest economies will have an election in 2019 with many observers and investors speculating on the side-effects of the political process on both economies, especially if fallout comes about before or after the process takes its due course. Perhaps Kenya’s current and past presidential election experiences can serve as a lesson for those two African powerhouse nations, in order for negative outcomes to be mitigated.
Kurt Davis Jr., 6:27 pm AFKI Original
The announcement by the Burkina Faso government last month regarding the launch of a $819 million jobs plan speaks to the diverging takeaways on the country’s growth. The plan includes the building of medical facilities, roads, schools and water infrastructure, while funds will be disseminated to the public via distributions to small and medium-sized businesses in an effort to create jobs and combat militancy.
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.
Kurt Davis Jr., 5:18 pm AFKI Original
While some African supermarket chains are achieving success, Kenyan brands Nakumatt and Uchumi are struggling badly. Smaller countries, such as Mozambique and Namibia, provide bigger opportunities for expansion (and returns) compared to East African nations. One can better manage growth expectations and costs in neighboring southern African countries, including Zambia, than in the rising East African giants.
Kurt Davis Jr., 9:47 am AFKI Original
The re-election of the People’s Movement for the Liberation of Angola (MPLA), and a brave decision by Jose Eduardo dos Santos to step down should be celebrated, but with this development comes a list of opportunities and challenges. The stepping down of President dos Santos should not be understated for its rarity in the context of politics in other sub-Saharan African countries.