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.
Energy: Latest News
Staff, 8:32 am
Cape Verde, the small island archipelago nation off Africa’s northwest coast, has set itself a very renewable energy target. As part of ‘sustainable energy for all’ agenda, it has pledged to obtain 100 percent of its electricity from renewable resources by 2025. Cape Verde is made up of 10 islands, nine of which are inhabited, that lie about 600km west of Senegal. Of the islands’ 550,000 residents have access to electricity, but about one-third still rely on firewood and charcoal for cooking.
Staff, 4:45 pm
The cars of the future will depend upon supplies of an obscure metal from a country in the African tropics where there has never been a peaceful transition of power and child labor is still used in parts of the mining industry. Most major automakers are pledging to build millions of electric vehicles as the world’s governments crack down on climate-damaging emissions from traditional-fuel engines.Demand is surging for lithium-ion batteries and the materials needed to make them–including cobalt.
Peter Pedroncelli, 8:23 am AFKI Original
Africa is fast becoming a key global tech market, and many of the tech leaders of tomorrow are emerging from the continent. Well-educated, innovative and with leadership qualities that make them stand out among their peers, Africa’s current crop of young tech influencers are impressive. From techpreneurs to investors, business leaders to top innovators, this list of African tech personalities who are under 40 years of age is testament to the growing influence that Africa has in a global context.
Staff, 8:08 am
A new program in Seychelles focusing on energy efficiency in state buildings and street lighting will soon launch. Called ‘Smart Energy in Public Spaces,’ the new program will include the installation of 10,000 LED streets lamps by 2020 across the three main islands of Seychelles. “The same program will also provide all the public schools with solar photovoltaic panels and other accessories for them to meet the schools’ energy needs,” said the Minister of Environment, Energy and Climate Change.
Peter Pedroncelli, 7:13 pm
It may seem counter-intuitive, but Africa’s richest man, Aliko Dangote has been quoted as saying that he wishes for the oil price to remain low, with his oil-rich Nigerian homeland in mind. Speaking at the United Nations general assembly in New York, the business leader told investors about Nigeria’s potential as an agricultural powerhouse, as well as his prayers with regards to the oil price
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.
Staff, 11:15 am
GreenWish Partners is planning to invest $800 million on solar-powered telecommunications towers across Africa. The project could fuel economic growth by providing power for essential services. Sub-Saharan Africa has the lowest rates of energy access in the world and is home to about half of the world’s 1.2 billion people without reliable electricity, according to the International Energy Agency. The problem extends to businesses as well as households, cutting into productivity and growth.
Peter Pedroncelli, 5:53 am
Renewable energy firm, GreenWish Partners, which is run by former Morgan Stanley executive Charlotte Aubin-Kalaidjian, has announced plans to invest $800 million on solar-powered telecommunications towers to be built throughout Africa. GreenWish will partner with telecoms provider Orange to implement hybrid telecommunication tower systems that are completely off-grid thanks to the combination of a solar panel, a battery and a diesel generator.
Peter Pedroncelli, 7:53 am
U.S. solar startup Fenix International is expanding its partnership with Africa’s largest telecommunications provider MTN in order to provide electricity to Africans who do not have access to an electricity grid. The San Francisco startup brings power to under-served areas thanks to the provision of their solar-power systems, and their extended partnership with MTN Group in Zambia will mean electricity access for an additional million new users in the country over the next three year period.
Staff, 8:32 am
There has been talk of tapping into the Sahara desert’s vast resources of sunshine to power Europe for years, but little to show for it. The high-profile Desertec initiative, conceived with 19 shareholders, flopped amid cost concerns and political instability across North Africa. Now a massive project in Tunisia is hoping to be the first to make the solar power export dream a reality. Developer TuNur filed a permit request to the energy ministry to build 4.5GW of capacity near Rjim Maatoug.
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