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:What business owners want from South Africa’s budget.

South African's are robust. Notwithstanding this fact, confidence in the country has continued to wane and next among the events to move the market is the South African Minister of Finance, Pravin Gordhan's, presentation on the budget - key listeners among the audience will be the country's business owners.

This will be the first budget speech Minister Pravin Gordhan will give since the infamous finance minister shuffle by President Zuma at the end of last year, firing Nhlanhla Nene and hiring David Van Rooyen sending the rand on a freefall, to then replace him with former finance minister, Gordhan.

Many feel that South African can expect very low growth for this current financial year. However, a lot of people are expecting Minister Gordhan to give the nation optimism in a time of volatility and lacklustre confidence.

Key to what business owners will be listening for is a cutting of the red tape by by loosening regulations and promoting entrepreneurship.

Another area of concern is government spending - any language indicating that government expenditure is going to be under control should be welcomed.

Knife Capital to launch KNF Ventures

  • KNF Ventures will be a South African based venture capital fund looking to raise R100 million (US$66m)
  • The fund will be registered as a 12J - 12J Venture Capital Companies take advantage of a South African Government-implemented tax incentive designed to help the country’s SMEs with access to equity finance
  • Individuals, companies and trusts investing through approved section 12J venture capital companies can deduct the full amount of their investment from taxable income

Construction to begin on East Africa’s largest solar project

  • The 10 MW, US$19 million solar photovoltaic project in Uganda is expected to be operational and connected to the national grid in July 2016
  • It is also the largest privately-funded solar power plant in Sub-Saharan Africa, outside of South Africa
  • It is also the largest privately-funded solar power plant in Sub-Saharan Africa, outside of South Africa
  • Spain’s TSK Group has been awarded the engineering, procurement and construction (EPC) contract and will sub-contract parts of the work to local firms