The European Business Council for Africa

Date: 20 April 2022, 12:00-13:00

Online

Invest Africa invites you to attend its event to address local investment strategies with traditional models of investment structures, weighing in on major and minor investments.

African investors are increasingly aligning their investment strategies with the strong demand for capital in the middle market. Close to 25% of investors record a preference for deals between $1m and $5m, followed closely by a preference for ticket sizes of $5m – $10m and $10m – $25, at just over 20% each. Investing in developing countries can create diversification for investment portfolios and expand home markets. We specifically want to address local investment strategies with traditional models of investment structures.

Impact investing is a relatively new.. Most investors believe there needs to be a trade-off between financial and social returns. In an economy with tangible social and environmental challenges, capital is often allocated discretely for financial or social return, with limited overlap. Venture Capital funding for businesses is most concentrated at the start-up phase (traditionally tech/ finance industries), or at the late-stage strategic acquisitions. Development finance institutions (DFIs) and Private Equity continue to play a significant role through their long-term focus and mandate for countercyclical investments.

There is an opportunity for fund managers to take advantage of the opportunities DFIs can offer, such as connecting fund managers and governments to fill funding and capacity gaps, facilitating due diligence processes, and mobilizing local capital.

Discussion points:

  • The merit in home market expansion is there but what are the challenges to raising capital in one country?
  • As a proven agile asset class, the PE industry is expected to play a key role in the economic recovery, is there a shift increased social responsibility?
  • What are the opportunist sectors across Africa?
  • Where is the most active deal activity on the continent?
  • Are portfolio companies performing after the negative impact of COVID, what do you think the rebound timeframe will be?
  • What are the key countries for investors? Who are the stars across Africa?
  • Is a boots-on-the-ground approach, employing investors from all across the continent to follow local markets in the countries they know best a good investment strategy?
  • What role does the state play in Public-Private Partnerships?
  • Do development finance institutions (DFIs) play a significant role? How?
  • Where are investors deploying capital from?
  • What do exits look like across the continent – can you provide some real examples?
  • The processes of digitization and urbanization have accelerated, how will funding change across Africa?

 

Please register here