Atta Africa Financial Update

Executive summary: By virtue of exchange, a person's prosperity is beneficial to all others.

2015 has been a landmark year for African trade. After a much awaited renewal of the African Growth and Opportunity Act (AGOA) providing duty-free access to the US market for more than 6,000 qualifying apparel exports from Africa, intra-African trade has also been bolstered via the completion of the Tripartite Free Trade Agreement (TFTA).

Three of Africa’s eight regional trade bodies will be integrated under one banner to promote inter-regional trade: the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) count a total of 26 countries, represent nearly 60% of the continent’s GDP and are home to over 600 million people.

Negotiations to create the TFTA started 7 years ago, and its implementation will have many obstacles. Harmonisation of the trade blocs will be expensive and reducing protectionist barriers in agriculture dominated economies will be politically sensitive. If these hurdles can be overcome however, the spoils could be in the order of US$3.3bn generated in new trade annually.

In the words of the President of the World Bank: Africa has made it clear it is open for business.

 

Africa50 raises US$830 million for African infrastructure

 
  • Africa50, the infrastructure investment initiative proposed by the African Development Bank has received US$830 million in commitments from 20 African countries
  • This first close was only open to African countries, however subseqeunty rounds will be open to international investors
  • Africa50 is targeting US$10 billion over the next 5 to 10 years to invest in high-impact energy, transport, ICT and water projects

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.