The African Business Review Jan-Feb 2014 | Page 20

for global integration and trade (see Figures 3-5 below). The potential
value addition of human development, improved social amenities and
better productivity outcomes that improved infrastructure promises,
will no doubt support the continent’s efforts to attain its targeted
economic development agenda.

The question is ‘where are the opportunities in Africa’?

Africans economies are looking to restructure and a robust private
sector is developing in many of these countries. Through some sectorial

The potential value addition of human
development and better productivity outcomes
will no doubt support the continent’s efforts to
attain its targeted economic development agenda.
obtainable in the first world.
reform programs, member Nations are now inviting international
players to participate in the privatization programs targeted at the
real sectors of their economies including the ICT, power and transport
sectors.

In the financial markets, the recent loss in value of major stock
markets worldwide has led HNIs (high net worth individuals) and
institutional investors’ to turn their focus back to PEs. This change is
driven by the potentially significant returns and the agility with which
private funds sniff out the deals. With a good turn around time, the
value addition is clear. With the current slide in returns in developed
markets, EMs (emerging markets) such as Africa represent a viable
market for economic rent particularly in locations where the risks can
be successfully managed.

Family-run Companies are increasingly looking at inviting
institutional investors, venture capitalists, and private equity funds to
become shareholders given the challenges that many of these family-run
businesses have in raising capital through debts. Similarly, governments
across the continent are beginning to realize the potential of the private
sector in increasing the Country’s tax (revenue) base. These governments
now view institutional investors as long - term investors who bring

In the financial markets, the recent loss in value of
major stock markets worldwide has led HNIs (high
net worth individuals) and institutional investors’
to turn their focus back to PEs.
professionalism and accountability coupled with the ability to expand
market opportunities through the use of their marketing networks, they
are therefore more acceptable than large multi-national corporations
who are encumbered in some of these countries by reputations of
exploitation. These challenges are not unmitigatable with a top-down
approach to investment, and several investors who have taken a plunge
have some impressive successful stories.

And who is on the train?

As A