Atta Africa Financial Update

Executive summary for the week.
Ethiopia: becoming one of the favourites for foreign direct investment (FDI).

Besides significant infrastructure development and a trainable work force, cheap labour is one component making the continent an ideal investment destination - particularly Ethiopia. Currently China has the world’s largest trained workforce, but that is set to change over the next two decades; by the year 2025, Africa is projected to have the largest talented work force.

Despite some slowdown in growth, Africa continues to be a foreign investment goldmine - the continent’s economic growth continues to surpass global averages and its GDP has doubled in the last ten years to USD 2 trillion.

Fact: Hydrogen: A colourless, odourless gas that given enough time becomes intelligent.

Longhorn set to acquire 74% stake in Law Africa Publishing

  • In a cautionary statement on Monday the Nairobi Securities Exchange-listed firm said it would be acquiring 74 per cent of the issued share capital of Law Africa for an undisclosed price
  • The transaction is still subject to both shareholder and regulatory approvals
  • Last month Longhorn raised Ksh530 million (US$5.14 million) in additional capital through a rights issue to fund its growth and expansion plans
  • Investment firm Centum which initially owned 31.25 per cent stake in Longhorn enhanced its shareholding to above 51 per cent, but ruled out the possibility of a takeover

Puma Energy Tanzania requests government’s support

  • Puma Energy Tanzania, a subsidiary of global oil firm Puma International, has made a request for government to purchase its petroleum products in efforts to boost government revenues in the firm
  • It is reported that government has a 50% stake in the business while Puma International controls the other half

Kenyan lenders eye US$6 billion Somalia economy

  • KCB Group and Commercial Bank of Africa (CBA) are among Kenyan lenders eyeing the Somalia market, as Mogadishu seeks to put up a dependable financial system that can attract more banks into the country
  • Mogadishu is also gearing up for oil and gas production in the next three years
  • A year ago, the Kenyan and Somalia governments signed the Joint Commission on Co-operation Agreement in financial regulation, investments and security
  • In an interview with Bloomberg, Governor of the Central Bank of Somalia Bashir Issa Ali said that he has held licensing talks with KCB Group and CBA, which are competing with Gulf lenders seeking to operate in Somalia, where a paltry 4 per cent of the population is banked

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