Atta Financial Update

Executive summary for the week of 07-Feb-17 to 14-Feb-17 (week 7)
If history is anything to go by, the Trump policy towards Africa will not be clear for several months at least. While it is apparent that the president-elect has had very little contact with the continent, the same was true for Presidents Clinton and Bush. Similarly, President Obama—who later emerged as a champion of African-U.S. private sector investment—did not develop a strategy for the continent until the end of his first term.

Interestingly, Trump’s Strategic and Policy Forum is made up of 16 CEOs, many who lead companies that are active in Africa. They include: Blackstone, General Motors, Wal-Mart, Boeing, IBM, Ernst & Young, and GE.

Naturally, the focus will of course be on the private sector’s role in improving America’s infrastructure, which Trump announced as a priority on election night. However, this goal could have great relevance and potential for Africa. For example, one proposal would be to create an economic subcommittee of the forum to look at infrastructure opportunities for American companies in Africa that would make use of American-made components. In 2015, the export of U.S. goods to Africa was valued at US$18 billion, which supports an estimated 121,000 jobs in the U.S., according to the Commerce Department.

The last three presidents have left positive legacies related to Africa: President Clinton’s signing into law of the African Growth and Opportunity Act; President Bush’s support for the President’s Emergency Program for AIDS Relief and the Millennium Challenge Corporation; and Power Africa, the Young African Leaders Initiative, and the U.S.-Africa Leaders Summit of the Obama administration.

Crossed fingers everywhere for the Trump administration.

Fact: Sending a man to the Moon and finding Osama Bin Laden cost the US government about the same amount of time and money: 10 years and US$100 billion.

African Private Equity News (PE)
African focused private equity funds

DPI sells CAL Bank stake

  • DPI recorded an exit, selling their stake in Ghana’s CAL Bank to newly-launched financial services platform
  • DPI backed Ghana’s CAL Bank in 2012 as part of a GHS 75 million private placement, (US$17million at today’s rates)
  • CAL's share price has grown by 200% on the back of an annual rate of post-tax profit growth of 77% between 2011 and 2015
  • Details of the transaction were not disclosed

Fairfax Africa to raise US$500 million for African investments

  • Fairfax Africa, a new investment holding subsidiary set up by Canadian insurer Fairfax Financial, announced that it expected to raise a total of US$500 million for opportunities in Africa
  • The investment vehicle will target investments in both public and private equity and debt opportunities in businesses either focused on or reliant on the continent. In addition to other Fairfax funds, its own funds
  • Fairfax Africa has received commitments from other investors including the Ontario Municipal Employees Retirement System and CI Investments

Silvertree Capital to acquire TopCheck

  • South Africa investment group Silvertree Capital has acquired TopCheck, a Nigerian financial services price comparison platform
  • The company provides consumers with an opportunity to make free price comparisons for insurance, loan and broadband internet plans online

FarmDrive to back Safaricom‘s Spark Venture Fund

  • FarmDrive has become the latest investment for Safaricom‘s US$1 million Spark Venture Fund
  • Using mobile technology, FarmDrive assigns credit scores to agricultural smallholders, linking them up to potential lenders through its platform
  • The investment capital will be used for future product development

East African economic news (EAC)

STANLIB to partne with Chestnut Uganda

  • Asset manager STANLIB is partnering with Chestnut Uganda to finance the development of the Arena Mall
  • Arena Mall is expected to be a new retail and shopping center located in Kampala’s Nsambya suburb
  • The development, which is expected to cost US$50 million, is forecast to open its doors in November 2018

Centum Investments and Investbridge Capital partnering on development project

  • Centum and Investbridge are undetaking to develop a 2,000 student school with the acquisition of 20 acres of and in Kenya’s Kiambu district
  • In total, the estimated development costs for the project will be approximately US$16 million