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06 January 2016

Atta Africa Financial Update

Executive summary: Africa is the world’s fastest-growing region for foreign direct investment (fDi Intelligence).

In a year when the global greenfield foreign direct investment (FDI) market grew a paltry 1 per cent, Africa enjoyed a 65 per cent increase in capital investment in 2014 over the previous year, to an estimated US$87bn (figure includes North African countries). Sub-Saharan Africa saw its investment levels rise from US$42bn to US$61bn.

Generally FDI tends to be market-driven, and as a result economies that achieved strong economic growth last year also received growing volumes of FDI - Africa registered 5 per cent GDP growth in 2014, beating the global average by 1.5 percentage points.

Capital investment into Africa remains, at its core, resource-seeking, with oil and gas investments accounting for US$33bn. Real estate was the second-most popular sector, attracting US$12bn in investment, followed by communications at US$6bn.

PROPARCO teams with CIEL on new healthcare platform
 
  • French development institution PROPARCO is investing an undisclosed amount to acquire a 15% stake in Ciel Healthcare, a platform company sponsored by CIEL Group
  • The IFC is also participating alongside CIEL and PROPARCO in this initial capital round
  • CHL has already begun to build its health network by taking over Fortis Clinique Darné (FCD) in Mauritius and International Medical Group in Uganda

Off-Grid have raised a US$40m debt package
 
  • Off Grid Electric, the solar power distributor operating as M-Power in Tanzania, has secured approximately US$40 million in debt financing from a consortium of family offices
  • Famly office members Include the Packard Foundation, Ceniarth, the Calvert Foundation and others as well as a US$5 million grant from USAID’s Development Innovation Ventures Program
  • The deal brings the total amount of capital raised in recent months by Off Grid to US$70 million in combined equity and debt funding