Atta Africa Financial Update

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

Executive summary: China and South Africa have signed deals and loans valued at US$6.5bn, with the focus on building infrastructure in the African giant.

The deals were announced during a four-day visit by Chinese President Xi Jinping to increase trade and investment between the two countries. About 26 deals were signed on Wednesday, with US$2.5bn going to South Africa's state-owned rail operator. China has given a series of loans to African countries for development. The countries, in turn, provide oil and other key commodities to the world's second largest economy. But recent slowing demand from China has hurt trade in those African countries reliant on its exports. Chinese investment in Africa plunged 40% in the first half of the year, according to China's Ministry of Commerce.

President Xi's visit has been viewed as a move to reassure African nations that China's slowing growth would not limit its investment in the continent.

 

Former President of the African Development Bank to join TPG/Satya

 
  • Donald Kaberuka, the former President of the African Development Bank who stepped down in August this year following the completion of his two 5-year terms is joining TPG/Satya as a Senior Adviser

Sun International deal bocked in South Africa

 
  • Sun International’s US$775 million bid for Peermont Group has been rejected by the South African Competition Commission
  • Peermont Group is a hotel and casino operator owned by Mineworkers Investment Company