Our Approach

THE WORLD’S MOST UNKNOWN GROWTH STORY

The emerging markets FDI magnet

Foreign direct investments into Africa already account for around 9% of total capital flows into emerging markets, growing by a staggering 32% over the last 10 years. Africa’s FDI rate now even exceeds that of Asia which has expanded by only 19%

African Private Equity is developing very rapidly

The private equity penetration in Africa currently lies around 0.18% which is again higher than the 0.12% in Asia. African stock markets are also in full development and currently make up 9% of the S&P emerging markets index and 15% of the S&P frontier markets index.

Resilient growth dynamics

The African economies have shown a remarkable resilience to the global market downturn. GDP growth in 2011 is expected to exceed 5% in the continent’s major economies. Currently there are more than 750 million consumers in Africa; this number is expected to reach a level of more than 1.25 billion in 15 years.

Increased purchasing power has resulted in a thriving middle class.

Africa’s average GDP per capita (PPP) increased from $1.5K in 1999 to $2.5K in 2009. The IMF expects this number to further increase to $3.1K by 2014. Improving institutions have allowed for more stability and better governance now that most major African economies have transitioned to democracy. Somalia is as much an exception in today’s Africa as are Afghanistan and North Korea to Asia.

Why invest in the African food industry?

The households that make up the rapidly expanding consumer class still spend most of their budget on food products. A rapid transformation is taking place from non-packaged non-branded to packaged and branded food products. An expanding middle class is demanding new product categories to match a more consumer-oriented lifestyle African food companies are growing by an annual rate of 18% and the ROE of listed food companies is 50% higher than most other sectors.