Atta Financial Update - 19 Sep 17

Executive summary: African debt: nearly US$25bn of sovereign debt is set to mature in soon.

Sub-Saharan country debt with a total return of 10.9 per cent has outperformed the EM average of 9.1 per cent so far this year, but will the current bullish market conditions will hold for the coming wave of new debt sales - concern is tied up in the fact that the region’s economy is still fragile.

The effecs of sumps in both oil and commodity prices at periods over the last decade have had noticable legacy effects. Concerns over high debt levels and credit risk remain - Moody’s has seven of the 19 sub-Saharan African sovereigns that it rates on negative watch, having downgraded four since the start of the year.

With a large proportion of debt set to mature in the coming years, the markets’ appetite for some of the riskiest sovereign debt on the planet is set to be put to the test.

Fact: Elvis Presley once started a riot at the end of his show by saying to the crowd: "Girls, I'll see you all backstage."


Arise to invest in Equity Bank

  • Arise, a recently launched US$660 million financial services investment platform, is taking a 12% stake in publicly-listed Equity Group Holdings
  • Arise is the product of CDC, Norfund and Rabobank combining their stakes in financial services companies in more than 20 countries on the continent

Partech Ventures‘ Africa hoping to raise €100 million (US$110 million)

  • Partech Ventures‘ Africa fund is hoping to raised €100 million (almost $110 million) to back digital and technology startups in sub-Saharan Africa
  • The IFC’s is considering investment of €15 million in the fund
  • Partech Ventures‘ Africa fund will seek to make equity investments in exchange for minority stakes in rapidly growing companies