Browsing: investing in Africa


African economies thrive on an abundance of natural resources. However, the financial resources needed to exploit these resources remain a major constraint in Africa. Foreign direct investments are playing a critical role in filling the capital gap in Africa as most governments run on budget deficits. 

Mozambique, a new investment hub, is booming with capital inflows in its energy sector. With its abundant natural gas resources, the country has positioned itself as a dominant energy investment hub in Southern Africa.

The Prospects

Massive natural gas reserves

Mozambique has a lot of proven natural gas reserves. It ranks 14th in the world in terms of its reserves. However, production for this energy resource is still very low as well as local consumption. This is a result of poor infrastructure development to extract the resource and also proving that the sector is still in its infancy stages. There is increasing interest

Does politics make good business sense

Much of the talk at the moment, and nearly always, is where we should invest in a world of recession, low-interest rates, unpredictable markets and a challenging socio-political climate. As open borders in East Africa close, open, close and re-open again and as Kenya prepares for yet another Covid-19 lock-down our own region is particularly challenging.  

I am a member of several international investment groups and so I am fortunate to hear the views, perspectives and experiences of many clever and visionary investors around the world. I have written here before about ESG investing – Environmental, Social Impact and Governance – the “do’s” of impact invest but I haven’t written about the “Don’ts”. And it strikes me that we should be talking just as much, perhaps even more, about where not to invest at the moment and in the future. …

[elementor-template id="94265"]

tech server

Data centers are Information Technology (IT) facilities responsible for the management of data in an organization. Data centers house state-of-the-art computing infrastructure with very powerful machines. Traditionally, data centers were associated with extensive use of space and a lot of hardware components to support big data storage and management services. 

As technology evolves, the use and development of software-based data centers requiring less space are increasingly becoming more common. 

Cloud computing, a modern model used for data centers is growing in popularity in Africa. This technological innovation allows for an integrated approach to data management services such as storage, applications, and servers. Cloud-based data centers have lower costs compared to traditional physical data centers. Most cloud computing services are outsourced from well-established companies that have the resources and experience to do so. Companies such as Microsoft, Amazon, and Teraco continue to invest significantly in cloud infrastructure, globally.

High growth

Are you thinking of investing in Africa, Côte d’Ivoire to be specific?

Well, the best time to invest in Africa is now. However, foreign investors have not moved into the continent as quickly as expected because foreign investment decisions are often methodically overstructured. One of the major factors cited is too much risk.

Africa is the most profitable region in the world. A report by the UN Conference on Trade and Development states that between 2006 and 2011, Africa had the highest rate of return on inflows of Foreign Direct Investment: 11.4%.  This is compared to 9.1% in Asia, 8.9% in Latin America and the Caribbean. The global figure is 7.1%.

Investing in Africa is good business and a sustainable corporate strategy for foreign investors. Advanced and emerging countries’ governments and the private sector should leverage these profitable, emerging investment opportunities.

Economic growth prospects

Africa’s economic growth prospects are …

Africa’s financial potential has become an interesting prospect for emerging market investors. Three decades ago a proposal to invest in Africa would have been considered ridiculous, but this is no longer the case. In fact, between 2006 and 2011, the continent was registering the highest returns on FDI at 11.4 percent, even higher than Asia at 9.1 percent, while the global average was 7.1 percent. To add to that according to the World Economic Forum, since 2000 "half of the world's fastest-growing economies have been in Africa. As western markets mature and foreign investments saturate in Asia, Latin America, Central and Eastern Europe, and India, Africa is fast becoming the most lucrative investment destination. The inefficient African markets are an excellent source of excess returns, given the level of perceived risks. …

[elementor-template id="94265"]

exit strategy

Africa’s private equity landscape continues to attract investment. The operating environment, albeit still turbulent, continues to improve. Granted, the pace of improvement is higher in some countries than others, but overall there is promise of a conducive climate for business. 

The enabling environment, coupled with the accelerated digital infrastructure growth, inspires momentum in the private sector contributing to the growing middle class. This will, in turn, lead to improved employment opportunities.…

What makes an entrepreneur.Pic Freepik

Unemployment remains one of the biggest socio-economic challenges in current times. This has been made worse with the recent hit that countries have experienced due to the global pandemic that has significantly slowed down the growth of economies across the globe.  

Many people have lost their jobs while others have had their salaries reduced; all of this is putting pressure on employees to meet the expenses and demands of basic living. This is why people are now turning to entrepreneurship to make a living or expand their income by running a ‘business on the side’. Our Reporter Kawira Mutisya has researched and come up with several pointers on what makes an entrepreneur. These should play a role in guiding those just joining the bandwagon.   …

[elementor-template id="94265"]

Sunrise (freepik)

The New Year 2021 has begun on a high note with the reality of the coronavirus vaccine shining across the globe. The year 2020 will certainly be etched in the minds of many people across the world for the wrong reasons. It is the year that the coronavirus caused death, illness and economic despair across the world.  

In Africa, the COVID-19 pandemic has hugely torpedoed the continent’s war against poverty. According to the IMF, developed economies will shrink by around 6% in 2020 while emerging markets and developing ones will shrink by 1%. With more people living close to the international poverty line in developing nations, it is imperative to note that low and middle income countries will suffer the greatest repercussions in terms of extreme poverty.  


The definition of poverty entails more than just the lack of income and productive resources

Does politics make good business sense

In the affairs of conducting business  whether it is a single, family-owned venture or a large multinational conglomerate – capital is at the crux of the undertaking. 

In this edition, The Exchange brings to you Part 2 of a two-part series on Patient Capital and how Africa can reap the tremendous value of philanthropy in business. 

Patient Capital: An Instrument for Financing Development 

Over the last decade, a new breed of investors focused on financial returns with a strong social and environmental value proposition have emerged in Africa. These “impact investors'' seek to consolidate financial returns with social impact by utilizing the apparatus of venture capital to make principal investments in private, high-growth companies/organizations that have the potential to deliver some quantifiable social or environmental benefits. 

Patient capital is an emerging investment instrument that generally falls under a broad category of vehicles for financing social change and economic

For a while now countries all over the globe are still trying to recover from the impact that COVID-19 has left behind, some of which are managing to do so effectively while others are still struggling.  

There are still a number of countries around the globe that are still feeling the effects of the pandemic, one of which includes Zambia, an African country that took a massive hit from the outbreak and does not seem to be improving. Although the country is going through a rough time post COVID-19 right now, it was already struggling before due to its being in massive debt. Having borrowed $12bn from international creditors, it has now become the latest country to default on its debts, after talks with its creditors hit an impasse.  

Zambia, in the north of Southern Africa and home to about 18 million people, has built its development over an abundance