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Sub-Saharan Africa

Please find below a sampling of some of the latest EMPEA statistics, programs and content covering information on Sub-Saharan Africa. For a more comprehensive listing, please search "Sub-Saharan Africa" and customizable criteria in Advanced SearchScroll down for additional data and resources.


Pension Funds and Private Equity – Unlocking Africa's Economic Potential

African pension funds can play a critical role in the region’s private equity industry, mobilizing an estimated US$29 billion and driving economic development, according to research conducted by the Commonwealth, the Making Finance Work for Africa Partnership Secretariat (“MFW4A”) and EMPEA, and kindly supported by The Abraaj Group. This joint report provides information that is crucial to a better understanding and appreciation of the pensions industry in Africa, and highlights how private equity offers pension funds a long-term investment opportunity with diversification and the potential to outperform. 

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Featured Data

Data Insight (Q3 2014)

After two years of Sub-Saharan Africa being ranked as one of the top three most attractive markets for GP investment in EMPEA’s Global Limited Partners Survey, fundraising totals have begun to reflect increasing LP interest in the region. Private equity fund managers raised US$3 billion for Sub-Saharan Africa in the first three quarters of 2014, more than any annual total since EMPEA began tracking fundraising statistics in 2006. Sub-Saharan Africa regional growth vehicles from The Carlyle Group, Helios Investment Partners and Amethis Finance led the way, receiving US$698 million, US$682 million and US$530 million, respectively, in capital commitments.  Source: EMPEA, December 2014.

 

Legal & Regulatory

New Regional African Merger Regulation: Impact on Private Equity

The impact of new merger regulations enforced by the Competition Commission (CCC) of the Common Market for Eastern and Southern Africa (COMESA) must be considered by PE investors eyeing potential deals in the COMESA countries of Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, South Sudan, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. The CCC is a regional competition authority created by treaty, which is tasked with the review of all mergers that have a regional dimension in the COMESA countries. Source: EMPEA, August 2014


 

Sub-Saharan Africa Fundraising and Investment

 

Source: EMPEA
  Fundraising (US$m) Investment (US$m)

1H 2014

2,151

1,038

2013

1,221

1,632

2012

1,993

1,130

2011

1,908

1,366

2010

1,687

709

2009

974

1,016

2008

2,425

2,387

 


 

EMPEA's Industry Partners Active in Sub-Saharan Africa

  • Aspen Network for Development Entrepreneurs (ANDE)
  • East Africa Private Equity & Venture Capital Association (EAVCA)
  • South African Venture Capital & Private Equity Association (SAVCA)
  • The Commonwealth (CommSec)

Learn more about EMPEA's Industry Partner Network »

 

Additional Resources

EMPEA Professional Webcast - Bright Africa: A Guide to Equity Investing on the Continent
EMPEA Professional Development Webcast on the most recent Bright Africa report presented by RisCura, Hamilton Lane and Ethos Private Equity (Pty) Limited, released in June 2014. Key topics discussed, included: how does the price of African private equity deals compare to other markets; how does African private equity deal multiples differ between the various sectors; what is the geographical and sector focus of private equity within Africa, and unpacking deal activity on the continent: transactions over time, and the value of transactions by acquirer region. Source: EMPEA June 2014

EMPEA Global Limited Partners Survey 2014
According to EMPEA's most recent Global Limited Partners Survey, markets outside the BRICs were identified by LPs as the most attractive destinations for PE investment over the next 12 months. Following last year’s trend, non-BRIC markets continue to dominate in terms of being the most attractive investment destinations, but Latin America (ex. Brazil) has regained the top ranking from Sub-Saharan Africa which moved to third. Southeast Asia is ranked second and is also poised to see the greatest influx of new investors over the next two years.

Impact Case Study: KZ Noir (Rwanda)
In early 2011, Kaizen Venture Partners (KVP), which focuses on special situations in Sub-Saharan Africa, saw an opportunity to create value as well as improve the lives of Rwandan coffee farmers by consolidating several struggling Rwandan coffee producers under one holding company—KZ Noir. By supporting KZ Noir’s working capital needs and improving internal reporting and capacity utilization, KVP helped its investee companies recover profitability and increase sales at a CAGR of 73% from 2010 to 2012. Source: EMPEA, June 2013

EMPEA Global Limited Partners Survey 2013
Global limited partners in search of the next wave of growth are evaluating their emerging market exposure and increasingly seeking investment opportunities in less-penetrated markets. EMPEA's latest survey of institutional investors reveals that Sub-Saharan Africa, Southeast Asia and Latin America (excluding Brazil) are poised to see the greatest increase in new private equity commitments across the emerging markets over the next two years, edging out Brazil, China and India as the most attractive destinations for dealmaking. Source: EMPEA, May 2013

Africa: Maximizing Investment Opportunities While Minimizing Risk
African markets, boasting 10 of the top 20 fastest growing economies in the world and five of the world’s top 10 reformers in 2012 according to the World Bank’s Doing Business rankings, hold exceptional promise for private equity investors. However, the lack of transparency and underdeveloped legal systems and institutional infrastructure in many African markets make assessing potential investments difficult.  Source: Legal & Regulatory Bulletin, Autumn 2012

Inside Perspectives: An Interview with African Capital Alliance's Okechukwu Enelamah
Okechukwu (“Okey”) Enelamah, a Founder and Chief Executive Officer of African Capital Alliance (ACA) shares his insights on the opportunity set in Africa and offers his advice on how to convert growing LP interest in the region into capital commitments. ACA is a private equity firm investing in West Africa, principally in Nigeria and countries in the Gulf of Guinea. Source: EM PE Review, July 2012.

Regulation of Private Equity in West Africa - Emerging Trends
In contrast to India and Mexico, where there have been serious efforts to introduce regulations specific to private equity, in the Western African jurisdictions surveyed here by Udo Udoma & Belo-Osagie and Norton Rose Africa Legal, with the possible exception of Nigeria, the adequacy of existing frameworks varies widely and generally leaves room for improvement. Source: Legal & Regulatory Bulletin, Winter 2012

Impact: Case Study: Fleurhof
The Fleurhof Project, a residential real estate development in Johannesburg, South Africa began construction in 2009. Private equity fund manager International Housing Solutions (IHS) has provided the majority of the equity financing for the project, which plans to eventually house over 30,000 moderate to mid-income urban workers and promote community through the inclusion of schools, religious sites, business centers and community gardens. Source: EMPEA 2012

EMPEA Special Edition Insight: Sub-Saharan Africa
The buzz surrounding the African private equity opportunity has escalated during the global economic crisis, as the region's brand has continued to subtly improve. Despite increased interest, actual private equity dollars in play in Sub-Saharan Africa remain at modest levels. However, significant developments currently taking place at the margins hold great promise for the region over the course of the next few fund cycles. Source: EMPEA, 2010