Africa Investment Notes

McKinsey re-writing Africa in time for the World Cup 2010

June 2, 2010

Interesting to see with nine days to go McKinsey puts out a writing package on Africa including an interview with SA deputy president. Africa’s growth story in McKinsey Quarterly covers a raft of articles:
•South Africa in the spotlight: An interview with Deputy President Kgalema Motlanthe
•A seismic shift in South Africa’s consumer landscape
•Picking products for Africa’s growing consumer markets

McKinsey's articles describe that Africa’s economies experienced a marked acceleration in growth during the past ten years "after decades of stagnation". Maybe we had more McKinsey types watching AfricaSIF roll out or at the EMPEA/IFC conference which covered Africa with new approaches?  The articles describe annual flow of foreign direct investment (FDI) into Africa in 2008 increased to $62 billion, from $9 billion in 2000 [almost as large as the flow into China per GDP]. This increased FDI accounted for the bulk of new African capital inflows, which grew rapidly from 2000 to 2008.

McKinsey describes "The magnitude of the continent’s development story is startling in its specifics and the opportunity it presents. This new package explores what factors underpinned Africa’s growth and the continent’s prospects. The rate of return on foreign investment is higher in Africa than in any other developing region. Global executives and investors must pay heed. The continent’s growth story isn’t entirely about the extractive industries. The region has already made great strides below the radar. It now stands to become the developing world’s next great success story".

The timing is a little obvious and maybe gets some more McKinsey types into the executive boxes for the opening game and the final at Soccer City. Let's see how the forthcoming research looks, "Forthcoming research from the McKinsey Global Institute (MGI) shows that resources accounted for only about a third of the newfound growth." The data looks at the pre-global meltdown data, so the current interpretation will be most useful. Still it is good to have some new material to review on Africa.


Africa investor’s Analysts’ and Fund Managers Forum 2010

May 29, 2010
Similar to our AfricaSIF roadshow we are conducting in 2010 raising the profile and awareness around sustainable investment in Africa, the Ai events offered high-level networking to analysts, fund managers, pension funds, sovereign wealth funds, investor relations officers and the financial media to meet CEOs from Africa’s leading listed companies and stock exchanges. The theme was “capital introduction” and the organizers put together one-on-one meetings for institutions currently rais...
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Talking about investment in Africa

May 17, 2010
2008 interview by leading French business school INSEAD with IFC country manager and Actis West Africa head.
See video

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US Corporate Boardroom Thinking on Investment in Africa

May 17, 2010
A short 30min video with some perspectives on how USA company boards are thinking about investment in Africa, including putting people on the ground and the sustainability of the operations.

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African investment realities

January 19, 2010
These insights from 2005 remain as important today in 2010 as they did five years ago.

"As in any market, Africa's potential rewards don't come without risks. Besides the much-discussed political challenges, African firms have to contend with scanty infrastructure, both physical and financial. Capital markets in Africa are still in their infancy. That makes it tough for c...

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2010 - Commentary from Wharton on African prospects: African Renaissance Depends on Internal Growth, Stable Governments -- and Patience

January 12, 2010
Commentary from Wharton on prospects for Africa, with comments from both investment and business perspectives.

African Renaissance Depends on Internal Growth, Stable Governments -- and Patience Published : January 06, 2010 in Knowledge@Wharton

African Renaissance Depends on Internal Growth, Stable Governments -- and PatienceWhile the rest of the world was rocked by the financial crisis and recession, Sub-Saharan Africa, with less to...

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2009 - Case study of Chinese tech company in Africa > Huawei Technologies: A Chinese Trail Blazer in Africa

January 12, 2010
Notes on case study of Chinese tech company in Africa from Wharton.
As always, a mixed blessing.

Huawei Technologies: A Chinese Trail Blazer in Africa
Walk into a bookstore in Beijing and you will find shelves filled with books about Huawei Technologies. As one of China's fledging multinational companies and a major force in the international telecommunications equipment industry, Huawei is rewriting the rules of competition in a glob...
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