Browsing: investing in Africa

Environmental, Social and Governance – three words that we now hear all the time when analysing and discussing investment. And three words that need to be an integral part of the due diligence for every investment decision. If you want to attract substantial investment into your business then you now need to make sure that your “ESG” story, policy and monitoring is solid and coherent.  

There was a time when “ethical” investment was its own niche. Those who aspired to be ethical, or had deluded themselves into believing that their ethics were central to their business practice, charged into ethical investing. “Ethical investment” was plastered all over investment products and people who thought ethical investment reflected their beliefs, morals and personalities bought into products that were not really intelligent, profitable or ethical! That seems a very long time ago. 

The next stages in the development of investment with …

None of us particularly like money-lenders and few of us would want the stress and unpleasantness of being the type of money-lender that proliferates in cities like Kampala – leeching returns of 10% a month against assets pledged by desperate borrowers.  The reason that these bloodsuckers can exist is that access to credit on reasonable terms, or at all, from banks is still so difficult to get for most businesses.  

Also Read: Mobile money loans affecting banks’ lending – report

The fact is that there are some great businesses that cannot grow and often struggle to survive because cash-flow is such a huge problem. In Europe many businesses use “factoring” to improve their business cash-flow and reduce the time they spend trying to collect money. But the truth is that the banks that provide this service are so selective about the businesses they deal with and the invoices they process …

VUCA (Volatility, Uncertainty, Complexity and Ambiguity) in Sub-Saharan Africa presents challenges to doing business that are distinct and unique to each market in the region. Such issues as political and economic risk which affect business decisions and hamper business growth in some climes, language barriers and cultural distinctions which affect communication and understanding in trade and currency value disparities all create opportunities for solutions through strategic government relations.  

Also Read:Coveting larger markets: Ethiopia’s bid to join WTO

Forbes®, in defining the meaning of the acronym, explains that ‘Volatility’ refers to rate of change at a market or global scale. The more volatile the market is, the higher its chances of change. ‘Uncertainty’ deals with the level of confidence with which the future can be predicted. Where the market situation is uncertain, there is greater difficulty to predict and anticipate a market shift. ‘Complexity’, which refers …

On the 10^th of July 2020, Helios Holdings Limited announced a merger with Fairfax Africa Holdings Corporation to form Helios Fairfax Partners Corporation – a pan Africa focused alternative investment manager.[1] On the same day, Eversend, an African fintech startup also announced over a $1M raise through crowdfunding.[2] Prior to that Helios announced a $100M investment from the Commonwealth Development Corporation (CDC) into their fund IV.[3] On the 1^st of July 2020, our portfolio company, www.hotelonline.co announced the acquisition of two travel tech companies.[4] On 30^th June 2020, www.msfafrica.com announced the acquisition of fellow fintech Beyonic based in Tanzania.[5] On 23^rd June, 2020 www.acumen.org announced their exit from KopaGas of Tanzania as part of the $25M acquisition by Circle Gas.[6] Then on 22^nd January 2020, www.mypaga.com announced the acquisition of Apposit an Ethiopian software company as the entry strategy …

The emerging digital ecosystem is a crucial multiplier of this growth, evident during the coronavirus pandemic…

Recently I did an interview with the guys at the “State of the Markets” podcast. In it, I discuss many things, including a few specific investment ideas — stocks I have personally invested in, over the last 18 months, in Tanzania, which I plan to hold for many years.

If you haven’t listened to it yet, you may find it worthwhile. You can replay the entire conversation at the Global Value Hunter homepage.

One of the core attractions of investing in less developed markets around the world is that they still inhabit a normal universe where interest rates are positive, and it’s possible to earn excellent real rates of return on plain vanilla investments, such as government bonds and bank deposits.

In Tanzania, for example, one can currently attain as much as a 15.85% yield on 20-year government bonds. What’s more is that inflation in Tanzania is only 3.3%, …

If you are looking to get into business for the first time, or looking for a side hustle to augment your income or looking for a second or even third business to venture into, look no further.

We share some business ideas for 2020, with every business meeting the criteria of having the potential to make you a millionaire, being in demand and having potential to automate.

Gaming

In statistics released in January 2020 by statista.com, the most downloaded Apple App Store category in November 2019 was gaming at 22.37 per cent. Business apps, the second most downloaded category stood at 10.12 per cent of the 33 categories featured.

According to the website, Google play store app most downloaded category in the fourth quarter was gaming at 13.35 percent, followed by education at 8.95 per cent.

With these statistics in mind, gaming seems to be a good business to venture …

Ride the wave of the African Continental Free Trade Area, African Development Bank (ADB) president Adesina Urged United Kingdom investors.

Speaking at the UK Parliamentary Symposium, Mr Adesina said Africa is on the cusp of unmatched economic transformation and the United Kingdom must engage in a partnership of change.

“The Africa of the 21st century is very different. The Africa of the 21st century is new and more confident,” he said
The All-Party Parliamentary Group for Africa with the Royal African Society, Oxford Brookes University, and the Trade Justice Network organized the symposium under the theme UK-Africa Trade and Brexit.

Adesina said that Africa and the United Kingdom should be significant trading partners. “The reality, however, is that UK’s trade with Africa is trending downwards. From a $49 billion peak in 2012, trade decreased to $30.6 billion in 2018,” he noted.

Also Read: AfDB president woos UK investors to take

Top 10 countries to invest in Africa 2020 an annual report released by Johannesburg –based Rand Merchant Bank Ltd (RMB)

1. Egypt

Egypt has an enormous market and a sophisticated business sector, which makes it the most attractive investment destination in Africa, compared to other countries.
Egypt has improved the business environment, which is facilitated through government programs and a progressive increase in investment from the private sector. This has enhanced its economic growth and assisted in repositioning the country on the global investment map.

2. Morocco

Since the Arab Spring, the country’s greatly enhanced operating environment has served the country well with an expected growth rate of 4% over the medium term.
Morocco joining the Economic Community of West African States (ECOWAS) and rejoining African Union has enhanced its investment appeal.

3. South Africa

South Africa remains a hotspot for portfolio investment despite its depressed levels of …