Kurt Davis Jr.
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.
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.
Kurt Davis Jr., 11:08 am AFKI Original
The economic downturn did little to stifle demand for African real estate. Some of the biggest returns and opportunities exist in rental properties, from beachfront getaways to hidden villas. Affordable housing is a major challenge for governments. Private investment is seen as a solution. Developers, private investors, and ordinary people can play a role in addressing the construction gap in the real estate sector and make a good return while doing so.
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.
Kurt Davis Jr., 10:34 pm AFKI Original
Equatorial Guinea is not the easiest place to get to, or the easiest place to understand. Sub-Saharan Africa’s third-largest oil producer is aggressively spending oil revenue on building roads, schools, hospitals and housing. First-time visitors to this closed, mysterious country will encounter easily navigated highways. The government is constructing Oyala, a planned city deep in the rainforest, to possibly replace Malabo as the capital. Oyala will feature new government buildings, a university, five-star hotels and conference centers. Kempinski, one of Europe’s oldest luxury hotel groups, plans to operate the first Oyala hotel and golf resort.
Kurt Davis Jr., 1:00 am AFKI Original
The number of urban Africans almost doubled between 1995 and 2015 and is expected to double again by 2035. Rapid growth is driving the African phenomenon of the megacity — an urban area with a population of at least 10 million. Megacities have economic benefits – economies of scale, innovation, clusters of skilled labor, and higher incomes. But they also struggle with congested slums, unemployment and out-of-control traffic. More than 50 percent of the African urban population lives in slums.
Kurt Davis Jr., 7:45 am AFKI Original
Everyone knows that Africa leapfrogged landlines to mobile phones, but without mobile, the continent is unconnected. Less than 20% are connected to the internet. Business and finance have become online activities globally. Africa needs to get up to speed to compete. Private investors are looking beyond the usual suspects. These are the African countries with the best opportunities for private investors to expand internet capacity in 2017.
Kurt Davis Jr., 9:32 am AFKI Original
Infrastructure in Africa is at the forefront of investors’ minds. Private equity investors see great opportunity, especially in power projects. The Ivorian president is a former IMF economist. The Ivorian budget minister is a former Goldman Sachs trader, and they’re on the same wavelength. The Côte d’Ivoire economy is expected to grow 8-9% in 2017 and 2018. Strengthening infrastructure will be key in the next phase of the Ivorian growth story. The government plans to spend $60 billion on infrastructure through 2020.
Kurt Davis Jr., 10:23 am AFKI Original
French cosmetics company L’Oreal has invested in organic beeswax in Mali, the surprise country for 2017. Economic growth should hover around 5-to-6 percent this year as agricultural production strengthens. Lack of investment or interest in the country in recent years means there are unexploited opportunities with many investors still sitting on the sidelines. Opportunities exist in cashews, biofuels, shea butter and cotton. This year should see some investors put cash into the country, especially in agriculture.
Kurt Davis Jr., 10:56 am AFKI Original
Kenya has long been known for fantastic athletes, but not so much for entrepreneurs focused on the business of fitness. Kenya-born Saloni Kantaria Mathur ranked No. 1 in Kenyan women’s tennis and studied law in the U.S. before starting an indoor cycling studio in Nairobi. The Reform brand is unmistakably Kenyan and it’s not your average gym experience. Reform integrates live-streamed performance data tech into classes, bringing the competitive instinct into the workout. Mathur shared with AFKInsider what she learned as a female African fitness entrepreneur.