Atta Africa Financial Update

Executive summary: African markets hold their breath as votes are counted in the US.

African countries do not escape the volatility experienced by emerging market currencies against the US Dollar. In the build up to the election, the Mexican Peso has proved to be a reliable inverse bell-weather of Donald Trump’s fortunes, as the candidate’s policies pose a significant threat to Mexican trade, and African currencies have broadly followed suit. A Republican victory is broadly predicted to spell losses for African currencies, yet betting markets suggest the probability of a Trump win is low.

Recent news favouring a Clinton presidency have been well received by emerging markets, with the MSCI’s EM benchmark gaining 0.6% today whilst Wall Street rallied 2% overnight, its best performance in 10 months. A “core scenario” of a Clinton win combined to a continued division in Washington would sustain the status quo and promote stability.

Fact: An individual horse has a peak power output of 14.9 horsepower.

Capria Ventures closed its Accelerator Fund at US$5.2 million

  • Capria announced that the Capria Accelerator Fund has reached its final close at US$5.2M and is slightly over-subscribed
  • Investors in the fund include Bill Gates, Ceniarth, Sorenson Impact Foundation, Aarin Capital Partners, and the International Finance Corporation
  • The fund is a stepping stone towards the US$100M Capria Emerging Manager Fund, targeting first close in H1 2017

Umeme suspends trading as Actis sells 14.3% stake

  • Umeme shares are expected to stop trading as British private equity fund Actis sells off its remaining 14.3 per cent stake in the Ugandan power firm by next week
  • Actis, which holds the stake in Umeme through subsidiary Umeme Holdings Ltd, had previously sold off a 45.1 per cent stake in the power firm in June 2014, scaling down from 60 per cent
  • The cross-listed shares at the Nairobi Securities Exchange are also suspended from trading for the period

Japan’s JICA agency pledges full support to Ghana grid

  • The Japanese agency’s country representative for Ghana, Liberia and Sierra Leone, Koji Makino, stated this while on a three-day tour in the Northern Region of Ghana, where there are currently two JICA projects underway
  • Ghana Business News reported that Makino assured that his agency will continue to support the building of electricity facilities such as substations, transmission and distribution lines to enable stable and reliable power supply