Browsing: investing in Africa

Top African Companies to watch in 2023
  • Africa is host to some world class companies that investors should consider adding to their portfolio in 2023. However, the investment climate has been choppy at best and investors need to be shrewd when it comes to their portfolio investment decisions especially in 2023.
  • The investment climate was at the beginning of the year quite optimistic with the world finally putting COVID and its pandemic behind it. Investing in African companies would have been in a no-brainer given the circumstances around the world at this time.
  • Things started to go side ways when Russia invaded the Ukraine and set in motion a chain of events which have profoundly altered the global investment climate and flow if investment capital which would otherwise be directed to the top African companies.
  • The United States dollar was resurgent in 2022 nearing parity with the Euro and the Pound Sterling as the cost of living
Economies the world over have made significant recoveries from the effects of the Covid-19 pandemic, Russia-Ukraine conflict and disruptive supply chains with positive growth recorded in 2022.
Many of these key economies are in Africa.
However, majority of the African continent remains highly exposed to risks that could hinder growth in 2023.
One of the major concerns is debt serving, where African nation's debt as a percentage of GDP has been rising faster than expected over the past decade.
It is estimated on average that most African nations' Debt to GDP ratio, as of 2022, stands at 24.1 per cent with some countries having even higher rates.
About 35 per cent of the continent’s external debt is owed to banks, asset managers and oil traders in the West, with Chinese lenders accounting for around 12 per cent.
Of the about $444 billion in debt repayments governments in the continent will
  • The event has been postponed over the new COVID-19 variant, Omicron.
  • This marks the second year running that the vital investment forum has been disrupted due to the coronavirus, with last year’s event cancelled.
  • This year’s Africa Investment Forum was meant to showcase118 deals in its pipeline from all eight founding members.

The African Development Bank (AfDB) has postponed the 2021 Africa Investment Forum (AIF) until further notice.

Delegates had already started preparations to travel to Abidjan for the event that had been slated for December 1, 2021.

The event has been postponed over the new COVID-19 variant, Omicron.

What is Omicron?

The heavily mutated Omicron variant was first detected in South Africa on Nov. 25, with the first cases identified in neighbouring Botswana and later cases reported in Tshwane, the municipality in which Pretoria is located.

According to the World Health Organization (WHO), the new variant is likely to …

It is hard to remember any decision that has ever harmed Kenya as much as the recommendation now before parliament that it adopts the European Union’s (EU) policies on agricultural inputs and phase them out. In fact, as the latest and most disastrous move yet by health policy-makers to take over the country’s agricultural policy, it is an overreach where ignorance could cost us 20 per cent of our entire GDP, as well as countless lives. 

 Also read: East African Trends: A focus on East Africa’s agribusiness investments

For there is nothing about the recommendation from the Parliamentary Health Committee to indicate it has examined the policies it wants introduced, or understood them, or assessed the impact on Kenya. Nor has it mentioned why the rest of the world – including Kenya itself – has moved into WTO disputes seeking the overturning of the very same policies, or why the

I am by nature an optimist. A long and challenging life has tempered that optimism with a large dose of realism but I am definitely a “glass half-full” kind of man. As a regular contributor to The Exchange I don’t really want to blame another contributor for tipping me over the edge into downright pessimism but, having read the excellent piece by Eric Kimunguyi entitled, “Europe taking on the world to lock out agriculture” I am not of good heart. In fact, I cannot remember a time when I have been less optimistic about the financial future of the world economy. 

The world financial system is even sicker than the world’s population. The Covid-19 pandemic is still having devastating effects on human health and wealth around the world – some 18 months after it first appeared. The world’s leading economies are broken and are still printing money to subsidise their

The shareholders of Equity Group Holdings Plc have passed resolutions that will reinforce the governance structures of the Group, continue to diversify the Board composition, and also assure investors of dividend pay-out every year as long as the Company posts profits.

In a statement, the Group says shareholders voted for the Amendment of Articles 1 and 79 of the Articles of Association of the Company thereby reinforcing its governance structure and signaling the growing significance of Equity Group Foundation as the social impact investment arm and custodian of the purpose of the Group.

Speaking after the AGM, the Group Board Chairman Equity Group Holdings Plc (EGH Plc), Professor Isaac Macharia said the move will further strengthen the structures to ensure the Board is reinforced through diversified representation for effective oversight.

“In so doing, the shareholders have passed a resolution enabling shareholders with more than 12.5 percent shareholding to participate directly

Africa has abundant natural resources and holds immense opportunities for investors to unlock its full potential.

According to the International Monitory Fund (IMF), Africa’s hardwon economic gains for the last two decades which are critical in improving living standards can be reversed from the impacts of the pandemic.

The scope for growth through large public investment programs is limited by the uncertain outlook for international aid and the high public debts levels. In its statement, the IMF notes that if countries in the region are to enjoy a strong recovery and avoid stagnation, Africa’s private sector will have to be more involved in economic development.

According to IMF, the private sector should be involved in both social (health and education) and physical (roads and electricity) infrastructure.

“Africa’s infrastructure development needs are huge—in the order of 20 per cent of GDP on average by the end of the decade. How can …

The African continent has been portrayed in most literature as the “Dark Continent”, with not many expectations from it. This degrading view is slowly fading from the trending news globally, as the continent continues to headline great achievements. 

 

There has not been a shortage of millionaires as well, with new six-figure worth individuals being added each year impacting the socio-economic outlook on the continent.  …

Subscribe to unlock this article

Login to read this article for free and get 3 free premium articles. Subscribe today for unlimited premium articles and more.

Digital Subscription – Monthly

Monthly renewing
You can cancel anytime.

$5 /Monthly

Digital Subscription – Annually

Monthly renewing
You can cancel anytime.

$40 /Annually

An educational approach especially one that combines study in key areas like Science, Technology, Engineering and Mathematics (STEM) is critical to achieving lasting change in the continent. 

An educational-based development model is a revolutionary tool in the economic sector as it fosters innovation, problem solving and creativity in real-life situations.  

 The approach has been adopted in most countries globally, as well as in the African continent. It has a significant impact on society, the economy and the way people relate to the natural environment.…

Subscribe to unlock this article

Login to read this article for free and get 3 free premium articles. Subscribe today for unlimited premium articles and more.

Digital Subscription – Monthly

Monthly renewing
You can cancel anytime.

$5 /Monthly

Digital Subscription – Annually

Monthly renewing
You can cancel anytime.

$40 /Annually

Consider everything you have heard about Africa is wrong and start on a quest to know and understand the continent better when it comes to the opportunities it has to offer. 

For anyone giving investing in Africa a wide berth, it is because of what they have heard and rarely due to what they have experienced. This will lead to missing the myriad opportunities the continent has in the different sectors where investment is badly needed.

 

For starters, Africa is not only the fastest-growing continent on the planet but it is also fuelled by a young and rapidly urbanizing population which will drive demand for a long time to come.…

Subscribe to unlock this article

Login to read this article for free and get 3 free premium articles. Subscribe today for unlimited premium articles and more.

Digital Subscription – Monthly

Monthly renewing
You can cancel anytime.

$5 /Monthly