Africa Voices

Special publication from the Actis Macro Forum

Published: June 2018

Actis has been on the ground in Africa for over 70 years now, with offices in Johannesburg, Cape Town, Lagos, Nairobi and Cairo today, but with investments across the continent in all of our principal asset classes – Energy, Real Estate and Private Equity. This gives us a unique perspective not only on the macro economic data available to all, but on how the risks and opportunities these indicators point to are felt on the streets of the cities we live and work in. In the years since the publication of the original “Africa Rising” narrative, we have seen a lot of the high hopes expressed at that time severely challenged by the decline in commodity prices, economic and political mismanagement and by a continued depreciation in local currencies. However, and as we have been saying quietly for the past 12-18 months, the frustration and concerns of local business leaders have been very gradually turning into a mood of fragile optimism that growth may be on its way back. The challenges of managing Africa’s demographic explosion remain, but as our contributors to this edition hope to point out, some of the lessons of the past appear finally to have been learned.

PRI and ERM launch guidance on ESG monitoring, reporting and dialogue in private equity

ESG Monitoring, Reporting, and Dialogue in Private Equity

Published: June 2018

The guidance builds the business case and provides context for the increasing requests for ESG disclosure in private equity; sharing an overview of how LPs are currently monitoring GPs on ESG integration and how they use the information that they receive. This research seeks to propose best practices for flexible ESG monitoring and frameworks for reporting that builds on existing information collected during fundraising in order to streamline information exchange. The guidance is supported by examples of how GPs might respond to the disclosure requests.

Private Sector & Development

Financing Start-Ups To Build Tomorrow's African Economies

Published: March 2018

With a high population growth rate and a significantly rising GDP between 2007 and 2016, Africa undoubtedly represents a strong potential for investors. And despite some gaps, the venture capital market has a bright future on the continent.

The Business of Education in Africa

Published: May 2017

The private sector can help address Africa’s daunting educational challenges, but both investors and policymakers must seize opportunities if it is to do so. This report aims to describe these opportunities in a tangible and actionable way. This new research finds that 21% of African children and young people are already being educated in the private sector, with this percentage likely to rise to one in four by 2021. It identifies an investment need in private sector education in the region of US$16–US$18bn over the next five years, of which about US$1.5–US$2bn is expected to be in the formal sector. This report aims to shine a light on opportunities in education for investors and the opportunities for policymakers to leverage the private sector in their education systems.

A Growth Engine

Trends and outcomes of private equity in Africa

Published: April 2017

'A Growth Engine: Trends and outcomes of private equity' in Africa is a report from The Economist Corporate Network (ECN). It is informed by interactions with leading private-equity advocates and actors who support the asset class in Africa. Preqin data for 2016 included reported transactions from January 1st to December 16th. Read it on the ECN website: http://ecn.st/PrivateEquityAfrica

Investing in Development in Africa

How Impact Investment can contribute to meeting the Sustainable Development Goals (SDGs) in Africa

Published: February 2017

The past decade has seen a turnaround in African economic growth. From 1980 to 1989 Africa’s Gross Domestic Product (GDP) grew by an average 1.8% per year. Between 1990 and 2000 GDP growth increased by 2.6% per year and by 5.3% per year between 2000 and 2010. This economic growth is producing a growing African middle class that is now estimated at 350 million people, creating a strong demand for development in industry and infrastructure.

Lions on the move II: Realising the potential of Africa’s economies

Published: September 2016

Many people are questioning whether Africa’s economic advances are running out of steam. Five years ago, growth was accelerating in almost all of the region’s diverse economies, but recently their paths have diverged. Some countries have continued to grow fast while others have experienced a marked slowdown as a result of lower resource prices and higher sociopolitical instability. Despite this, the continent’s fundamentals remain strong, but African governments and companies will need to work harder to make the most of its potential.

World Bank 2016 Global Economic Prospects: Sub-Saharan Africa

World Bank

Published: January 2016

Economic activity in Sub-Saharan Africa slowed to 3.4 percent in 2015 from 4.6 percent the previous year. A combination of external and domestic factors was responsible for the slowdown.

Made in Africa

King & Wood Mallesons

Published: December 2015

This report focuses on the latest legal and market developments, with our partners in Africa that are of interest to investors and businesses operating on the continent.

International Private Equity and Venture Capital Valuation Guidelines (2015)

IPEV

Published: December 2015

In 2015 the IPEV Board consulted on amendments the International Private Equity and Venture Capital Valuation Guidelines. The IPEV Board periodically updates the IPEV Valuation Guidelines to give effect to changes in accounting standards and enhancements in best practice.

The Landscape for Impact Investing in West Africa

GIIN

Published: December 2015

The Global Impact Investing Network, in partnership with Dalberg Global Development Advisors, published The Landscape for Impact Investing in West Africa, a state of the market analysis of the impact investing industry in the region.

The Landscape for Impact Investing in East Africa

GIIN

Published: July 2015

The report analyses an active impact investing market across East Africa. Development finance institutions (DFIs) are a significant player in the market, having deployed nearly $8 billion in impact capital to date.

Bright Africa 2015

RisCura

Published: July 2015

Africa’s investors have become markedly more sophisticated in recent years. They understand that the continent is one of the world’s fastest-growing regions and that populations are young and urbanising. They also understand that Africa is rapidly adopting technology, is increasingly connected, and is playing catch-up to the rest of the world in terms of living standards.

SAVCA and KPMG 2015 VC & PE Industry Performance Survey

SAVCA and KPMG

Published: June 2015

This 2015 SAVCA and KPMG survey examines the performance of the private equity industry in South Africa.

Environmental and Social Due Diligence: Mitigating Risks, Identifying Opportunities

CDC Group

Published: June 2015

ESDD is a key part of the decision-making process prior to making a new investment. This report looks at how risks are properly managed and potential value-adding opportunities are identified.

EY 2015 Africa Attractiveness Survey

EY

Published: June 2015

EY releases the fifth edition of the annual Africa attractiveness survey. This milestone is an opportunity to pause and reflect on how Africa’s attractiveness has evolved.

Investing in Africa’s Small and Growing Businesses

I&P

Published: May 2015

This handbook is intended for professionals wishing to invest in African SGBs, for African entrepreneurs and more broadly for the sector of SGB investment in the developing world.

World Bank 2015 Global Economic Prospects: Sub-Saharan Africa

World Bank

Published: January 2015

Sub-Saharan Africa’s growth improved, for the second consecutive year, to 4.5 percent in 2014. Despite headwinds, growth is projected to pick up to 5.1 percent by 2017, lifted by infrastructure investment, increased agriculture production, and buoyant services.

Integrating ESG in Private Equity – A Guide for General Partners

PRI

Published: November 2014

The guide gives GPs practical guidance to develop a framework for the integration of ESG factors into their investment activities, which is linked for the first time with organisational governance, structure and culture.

World Bank 2014 Global Economic Prospects: Sub-Saharan Africa

World Bank

Published: June 2014

Sub-Saharan Africa’s GDP grew 4.7 percent in 2013 led by robust domestic demand, and is set to continue to rise. Despite emerging challenges, the medium-term outlook remains positive.

EY 2014 Africa Attractiveness Survey

EY

Published: June 2014

Africa’s perceived attractiveness relative to other regions has improved dramatically over the past few years. Africa has moved from the third-from-last position in 2011 to become the second-most attractive investment destination in the world.

SAVCA and KPMG 2014 VC & PE Industry Performance Survey

SAVCA and KPMG

Published: June 2014

This 2014 SAVCA and KPMG survey examines the performance of the private equity industry in South Africa.

Bright Africa 2014

RisCura

Published: June 2014

In 2000, Africa began the long process of catching up to global living standards and economic output. Evidence of this change can be seen in the continent’s share of global GDP, which has grown from 4.2% in 2008 to 4.5% in 2013. This may not seem like much, but increasing the global share of GDP requires countries to outperform global growth levels consistently over time.

Pension Funds and Private Equity: Unlocking Africa’s Potential

The Commonwealth Secretariat and Making Finance Work for Africa

Published: May 2014

Pension funds play a critical role in finance through the mobilisation and allocation of stable long-term savings to support investment. This report looks at how Africa can mobilise these domestic resources to support private sector development.

Lions on the move: The progress and potential of African economies

Published: June 2010

Africa's economic growth is creating substantial new business opportunities that are often overlooked by global companies. Consumer-facing industries, resources, agriculture, and infrastructure together could generate as much as US$2.6trn in revenue annually by 2020, or US$1trn more than today. Africa's collective GDP, at US$1.6trn in 2008, is now roughly equal to Brazil's or Russia's. While Africa's increased economic momentum is widely recognised, less known are its sources and likely staying power.

Bright Africa 2018

Segmenting Africa into meaningful markets

Published: March 2019

This report highlights the marked structural differences between regions in Africa. As the continent recovers from the hangover of the latest commodity cycle, it is these structural differences that shape the recovery of the different regions. The private equity industry continues to grow, with deal activity still increasing and asset prices remaining robust.