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: Africa’s economic prospects in the face of declining commodity prices largely depend on its level of openness and integration with the rest of the world through trade and investment.

Several studies recently have shown that loose ties and connections, and low levels of economic integration remain constraints on the continents economic progress and should be addressed in order to achieve and sustain its economic potential.

Even though Africa’s share of global trade increased by over 40% in relative terms between 2003 and 2015, the continent still has the lowest share of world merchandise trade.

International capital flows to the continent are growing from a low base - the region attracts less than 5 per cent of global foreign direct investment.

There are reasons to be optimistic: the planned Continental Free Trade Agreement (CFTA) has the potential to reinvigorate Africa's development. It should prove crucial for the creation of well-paying jobs, especially for Africa's youth. UNCTAD estimates that implementing the CFTA will roughly double the share of intra-African trade (currently around 13% of African exports) by early next decade.

Fact: The Rubik’s cube is the best-selling product of all time. The iPhone is second.

Brit makes investment in Camargue

  • Brit, a global specialty insurer and reinsurer, has made a significant strategic investment in Camargue Underwriting Managers, one of South Africa’s leading providers of specialised insurance products
  • Brit, a subsidiary of Fairfax Financial Holdings, has a major presence in Lloyd’s of London, the world’s specialist insurance market provider, with significant US and international reach

Norfund, FMO and Rabobank create platform for investing in African financial services

  • Norfund, FMO and Rabobank have partnered to launch Arise, an investment platform that will take and manage minority stakes in African financial service providers, starting from January 2017
  • The partners currently hold stakes in several FSPs in sub-Saharan Africa, which they have agreed to pool together to form the new venture
  • Arise will start with a presence in over 20 countries, US$660m in assets and is anticipated to grow to US$1bn
  • The transaction is subject to regulatory approvals being obtained, both at shareholder level as well as at the various underlying investee levels