Roads and rail lines are sparse, decrepit and over-burdened. Many investors see investing in Africa as the "final frontier." According to the Overseas Private Investment Corporation (OPIC) and UNCTAD, Africa offers the highest return on foreign direct investment in the world. 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. It analyses strategies used by various international and domestic social investment capital providers. BusinessDay spoke with the production team which include frontline women professionals, Arunma Oteh . This report maps the landscape of social investments in East Africa with a deep dive focus on Kenya, Uganda and Tanzania, and a high-level assessment of Rwanda, Ethiopia and South Sudan. Africa returned at least 11.4% on FDI compared to 9.1% achieved by Asia and 8.9% in the Caribbean and Latin America. Africa's Changing Investment Landscape According to the African Development Bank, Africa's infrastructure gap stands at approximately US$50 billion per annum. Accessibility to hedge funds in SA has improved significantly, with new asset managers being launched, greater transparency, new regulations, and retail investor hedge fund structures. The investment Landscape Against this backdrop, Africa has been the exception to the rule with FDI flows rising by 11% in 2018 to US$46 billion. According to the Africa Investment Report 2021 by Briter Bridges, the continent received USD 4.9 billion in startup funding through more than 740 investment deals in 2021 alone. The report is the first of several concerted efforts aimed at addressing information gaps on social investments financing . DFMs first launched in South Africa around 2010, mainly due to the introduction of the Financial Advisory and Intermediary Services (FAIS) Act, the explosion in fund choice and the functionality . , ROA @ 1.6% & ROE@9% (2019) With a decade-long track record of venture building alongside some of the smartest founding teams in Africa, we back startups across multiple sectors, regions, and products that tackle the most . Namibia, South Africa, Zambia and Zimbabwe. 2017 was a turning point for startup funding in Africa. The regional landscape has now been redrawn, with 85 percent of total funding (US$1.7 billion) flowing to Nigeria, South Africa, Egypt and Kenya. The fourth edition of the Africa Risk-Reward Index (ARRI) released today by Control Risks, a global risk consultancy, and Oxford Economics, a global advisory firm, offers a snapshot of the highly-dynamic investment landscape in Africa. Download Analysing Africa's Angel Investment Landscape. A study by UNCTAD showed that between the years 2006 and 2011, Africa had on average the highest returns on foreign direct investment. . This section also considers the government's economic vision and industrial policies, as well as the 'Gateway' initiative aimed at establishing South Africa as an investment avenue into the rest of . Please complete the information below and the document will be sent to the email address provided. However, there are signs that the wider infrastructure investment . "This investment alone is about 1% of sub-Saharan Africa's total GDP in 2008, estimated by the World Bank to be about $987 billion dollars!" But the money is not only from foreign sources. A lack of aviation agreements has limited intra-African air connections. Why Africa's investment landscape is on the rise Jun 5, 2015 Economic Progress Africa's stellar economic performance over the past five years can partly be linked to huge domestic demand, foreign investment, strong commodity prices and improved economic governance. The wealthtech landscape in Africa is similar to India's. In Kenya, for instance, the AUM in different collective investment schemes stood at KSh117 billion (US$ 81.02 billion) in June 2021, up from KSh56 billion (US$ 493 million) in September 2017, as per data from the Capital Markets Authority (CMA). KIFC: In partnership with the Qatar Investment Authority and Rwanda Social Security Board, we established the Virunga Africa Fund I in November 2021. "Investors should take heed of the fact that the mobile voice phone market in sub-Sahara Africa has grown by 61% per annum on average over the last ten years and we see no reason for this growth to end - just to take a different route," he argued. Most insurtech startups in Africa are companies that focus on the access to, and distribution of insurance products, rather than actually offering insurance as an underwriter per se. Out of 54 startups that received funding in this period, 65% are . Google's third bet from its Africa Investment Fund is in logistics company Lori Systems. For the more seasoned Africa investor, the index provides a grounded, longer-term outlook of key trends shaping the investment landscape in major African economies. Since investment begets investment, the study will aim to establish how the landscape of investment assists market stakeholders in both the private, public and development finance sectors, to refocus their strategies further. What the opportunities are and what the obstacles to increasing investment flows are. "However, annual investment in renewable energy - arguably the most attractive sector for commercial investors - stands at a mere $9.4bn. The ARRI compares some of the continent's largest and emerging markets and plots The regional landscape is complex with countries often belonging to more than one economic community or organization. Investment Landscape in Africa. Most tellingly, almost half of all known non-DFI impact capital disbursed in East Africa has been placed in Kenya. has reduced investment in Africa since 2019. Museveni remains keen to boost Uganda's refinery capability, at times hyping Uganda's potential to refine 180,000 barrels/day, but scaling back possible expectations in private to possibly as low as 30,000 barrels/day. However, a set of barriers to finance have stifled requisite investment to date. Africa will need around USD 133 billion annually in clean energy investment to meet its energy and climate goals between 2026-2030 (IEA, 2022). The overall goal of this project is to quantify the breadth of investment activity with respect to housing and housing finance across Africa and to establish a mechanism to track this on an ongoing basis. This project has collected data and highlights gaps and opportunities in the investment landscape. CAHF seeks to contract a consultant to undertake the Southern Africa segment of this study. Landscape of climate finance in Africa. Disclosed deal flow into African ventures grew by a record 32% from $331m in 2016 to $438m in 2017, according to historical data provided in the Africa Investment Report 2020. This paper considers the effects of the global economic crisis on the South African government's recent economic policy developments, especially those aimed at job creation. The research also notes a surge of interest in Africa from smaller geopolitical players such as Russia, the Gulf states, Turkey, and India. A total of 60 transactions were identified, with 40 of those accounting for USD 161 Mn of disclosed funding. However, annual investment in renewable energy arguably the most attractive sector for commercial investors stands at a mere USD 9.4 billion. Policies matter: Number of investment policy measures adopted globally between 2008-2020 Submit request for document. Going forward the most compelling cases for investment in emerging markets will be in Africa. Geopolitics and the changing geography of global demand will impact the international investment as developing countries continue to deepen their participation in global investment flows and tension remains high in the rivalry between the US-China. The paper concludes with an overview of investment challenges and opportunities to improve the landscape for investment in housing in Tunisia. African investors are increasingly aligning their investment strategies with the strong demand for capital in the middle market. He has advised high-level public and private actors as a former Consultant and brings specialist insight on public policy, entrepreneurship and investment opportunities in Africa. "Those searching for growth would do well to look in the field of infrastructure outsourcing." China is set to dominate Africa 's foreign direct investment (FDI) landscape during the next decade and is in the process of diversifying its investments away from mining and infrastructure to service industries, including scientific research and technology services, transport, warehousing and postal services. The report also stated that Africa is also recording faster growth in consumer spending than most other regions: 9.4% CAGR from 2018 to 2023 compared to Eastern Europe's 6.9%, Asia Pacific's 6 . Lori Systems, an African on-demand logistics and trucking company digitizing haulage and providing . The hedge fund industry in South Africa is still in its infancy, with South Africa managing just R70 billion collectively. Investment and Trade Landscape Overview Prosper Africa's "Investment and Trade Landscape and Opportunities in African Healthcare" landscape report discusses the healthcare market in Africa and continued new and exciting opportunities for investors, entrepreneurs, and other stakeholders to improve access and patient outcomes. According to the latest research, there are now over 2,000 businesses and startups in Africa that have received investment from venture capitalists. Excluding South Africa, Africa's most insured market, this number drops to a staggering 1.12%. With both bullish and bearish positions being observed in the market, WeeTracker Research sought to analyze Africa's eCommerce Investment landscape between 2018 and 2020. The first section of the paper presents a short review of South Africa's economy in the wake of the global crisis that began in 2007-2008. South Africa is an exceptionally large market for impact investors relative to other markets in the region, accounting for 76 percent of all impact deals Investing in Africa: The Business Case With some of the fastest-growing economies in the world, African nations are playing an increasingly significant role in the global economy. 16 Despite the impact of the COVID-19 pandemic on the global economy, VC firms continued investing in Africa during 2020. OPPORTUNITY Opportunity and future of Investment banking, in the backdrop of Commercial Banks' performance: oBanking Assets are growing at an average of 5% p.a. Our host Irene Kiwia is joined by Frederick Fyle . All these named regions performed better than the then global FDI return average of 7.1% Plenary sessions. Discreetly matching global debt and equity capital with vetted African investment opportunities between $5m and $50m | Cala Capital Africa (formerly Neu Capital Africa) facilitates investments between African businesses and alternative and institutional investors seeking to deploy $5m to $50m in debt, equity or a hybrid. This represents more than USD 650 million of a total USD 1.4 billion disbursed (Figure 8). It also offers a comparative snapshot of . It analyses strategies used by various international and domestic social investment capital providers. Botswana, Eswatini, Lesotho, Namibia and South Africa are also members of the Africa Investment Roundtable, a research-based thought leadership platform providing in-depth examination of the African investment landscape, goes live on Monday with its debut conference exploring the investment outlook for Africa in 2021. Aid followed by foreign direct investment are the biggest sources of social funding outside of governments. As the second half of 2021 approaches and Covid-19 vaccinations roll out across the globe, albeit at varying rates, Ian Lessem, Managing Partner at HAVAC, investors in early-stage, high-growth technology businesses, considers the trends making an impact on the African Venture Capital (VC) landscape. First name. Download Full Report Executive Summary This paper is part of a series of studies scoping the landscape of housing investment in Africa. 6 THE LANDSCAPE FOR IMPACT INVESTING IN SOUTHERN AFRICA In analyses of the region overall, South Africa is considered separately from the rest of Southern Africa. January 04, 2021. The research project has collected data, highlights gaps and identifies opportunities in the investment landscape in Africa. Access to this resource requires you to provide some basic information. FINTECHTV Editorial Team. 9. The overall goal of this project is to quantify the breadth and depth of investment activity in housing . Open plenary discussions on the market landscape and risk mitigation with fund managers; Expert discussions on success stories with investors . The countries to watch in 2022 based on the FDI they attracted in 2021 are Egypt, Ethiopia, Nigeria, the Republic of the Congo, and South Africa. With both bullish and bearish positions being observed in the market, WeeTracker Research sought to analyze Africa's eCommerce Investment landscape between 2018 and 2020. It is this big oil potential that is pushing the country's FDI inflows to the front of the pack. Traditionally, this social financing would have come from aid, government funding, philanthropy and foreign direct investment. In all honesty, the very likelihood is yes, because Africa They build products to help insurers, banks or other businesses . Massive investment is leading to major upgrades and expansion at African ports and airports, but much of Africa's growth potential depends on in-country and intra-African road, rail and air connections.