Investing in the African Opportunity

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Investing in the African Opportunity CUSTOM MEDIA INVESTING IN THE AFRICAN OPPORTUNITY FEATURING EXCLUSIVE INTERVIEWS AND ARTICLES ON: KENYA I RWANDA I EGYPT I SIERRA LEONE I COte d’IvoIRE I ETHIOPIA WWW.THEWORLDFOLIO.COM The Worldfolio 2 3 The Worldfolio The Worldfolio 4 STAFF ÁLVARO LLARYORA Chairman, The Worldfolio JONATHAN MEANEY Chief Editor Art Direction & Graphic Design: EDUARDO BERTONE & IGNACIO PLASENCIA Project Coordinator: GEMMA GUTIERREZ Contributing Writers: ELEANOR Wragg & JONATHAN MEANEY TABLE OF CONTENTS 9 Can Africa’s 23 Regulatory changes inspire confidence 49 Rwanda: Transforming lives and the rising continue? in Kenyan capital markets economy through ICT 78 Africa financial services: 94 Private equity in Africa: 102 Interview with Prime Minister of No place for copy-paste Opportunities abound for the right investor Ethiopia, Hailemariam Desalegn 5 The Worldfolio The Worldfolio 6 THE AFRICA FINANCIAL SERVICES INVESTMENT CONFERENCE 2017 May 3rd to 5th 2017, Park Plaza Riverbank, London, UK The Africa Financial Services Investment Conference (AFSIC) is the leading investment event focused on Africa’s financial services sector. The annual AFSIC, now in its 5th year, attracts financial services companies, predomi- nantly leading Banks, Insurance Companies, Microfinance, Leasing and other regulated financial services compa- nies from almost all parts of the African continent. The wide spread of companies from across Africa attracts a highly significant proportion of major institutional investors focused on investment into Africa, and those considering the increasing merits of doing so. These inves- tors include sovereign wealth funds, supranational investors, listed equity and private equity investors, African regulated asset managers, alongside impact investors such as DFIs and microfinance-focused investors. In addition to major Financial Services companies and investors, AFSIC is well represented by major Deal- makers focused on Africa, such as Investment Bankers, Stockbrokers, Corporate Finance experts, Fixed Income and Debt specialists, M&A bankers, many of whom attend the Meet African Dealmaker event which takes place the night prior to AFSIC. AFSIC has shown continued strong annual growth in delegate numbers with 500 delegates expected to attend in 2017, and welcomed over 100 speakers in solo and moderated panel sessions in 2016. With companies from over 30 African countries expected to attend in 2017 and 150+ speakers, this is your chance to develop and nurture a robust, extremely high-quality network of friends, colleagues, investors and busi- ness contacts across the continent in preparation for Africa’s continued emergence as the most exciting invest- ment destination in the world. HISTORY The first Africa Financial Services Investment Conference took place in Brighton in May 2013. The objective was, and remains, to bring together African financial services companies with a wide range of Africa’s most important investors, both debt and equity. In consideration of the difficulty of traveling within and across different African countries, the event provides an important forum where a large number of high impact meetings can be held in one place at one time. AFSIC 2014 saw considerable growth with over 125 companies. The event grew considerably again in 2015 with over 220 companies attending representing 25 different African countries. The number of investors attending grew yet again, and the number of African financial services companies attending grew particularly strongly. Following the move to London, AFSIC 2016 saw further strong growth in delegate numbers with significant attendance from Africa’s leading debt and equity investors of note. As news of AFSIC spreads throughout the continent it is likely that the event will continue to develop as Africa’s largest financial services investment event attracting banks, insurance companies, consumer lending companies, microfinance companies, leasing companies, investment banks and brokerages and similar companies. 7 The Worldfolio AFSIC: THE GatEWAY TO AFRICA'S FINANciaL SECTOR Rupert McCammon, Founder and Managing Director of the Africa Financial Services Investment Conference (AFSIC), sat down with The Worldfolio to discuss key elements of AFSIC and what to expect from this year’s event also present themselves at AFSIC allowing attendees to understand better which investor is most suited to their own requirements. Who attended last year’s AFSIC? Over 200 companies including banks, insurance companies, microfi- nance and leasing companies, etc. attended the 2016 event. Investors attending AFSIC 2016 included a wide range of major Africa-focused funds that made presentations such as Actis, African Development Bank, Amethis Finance, CDC, Development Partners International, the European Investment Bank, FMO, Frontier Markets Fund Manag- ers, Helios, Leapfrog Investments, TLG Capital and The World Bank, among many others. Apart from investors and delegates from African focused finan- cial services companies, you can expect to meet a wide range of delegates with an interest in Africa’s financial services sector, in- cluding research analysts from leading investment banks, financial Rupert McCammon, Founder and Managing Director of the institutions group teams, sell side analysts, corporate finance advisors, Africa Financial Services Investment Conference (AFSIC) members of the Africa Press Corps, private investors, and attendees from companies looking for business opportunities in Africa. What is the objective of AFSIC? AFSIC is the leading investment event focused on Africa’s financial What is the Meet African Dealmaker event? sector. African Banks, Insurance Companies and Microfinance In- This event, which is focused on Dealmakers, such as stockbrokers, stitutions from across the continent attend in order to meet global investment bankers, M&A experts, etc. takes place the first night debt and equity investors who are looking to invest in equity or se- of AFSIC within the Houses of Parliament on the banks of the River nior or subordinated debt capital. The large number of investors Thames. The event is highly recommended for delegates wanting to attending makes the event highly attractive as delegates are able expand their network further across the African continent. to hold a wide range of high-impact, business-focused meetings in one place at one go. What is new for AFSIC 2017? As AFSIC has grown the event team has strived to introduce new op- What types of African financial services companies attend? portunities to make the interaction between investors and Financial Banks, Insurance Companies and Microfinance companies, both Services companies from Africa even stronger. The biggest change at those listed on African or other stock exchanges, and private com- AFSIC 2017 has been the addition of an extra half day in the program, this panies attend AFSIC from all parts of Africa. reflects the growth in AFSIC, and its strong appeal to investors as a highly convenient venue to explore a wide range of investment opportunities. What types of investors attend? AFSIC 2017 sees the addition of four exciting panels focusing on Investors focused on both Equity and Senior or Subordinated debt the investment opportunities in North, South, West and East Africa. attend AFSIC. The strong range of investors attending results in a These panels have some excellent local companies participating who focus on a range of investment sizes. For instance, organisations such will provide real insight into these investment areas. as the IFC, EIB, AFDB, and some of the largest Private Equity funds We are also delighted that FSD (Financial Sector Deepening) may be looking for investment sizes of $50 million-plus. While other Africa which will be concentrating on highlighting opportunities in investors including Listed Equity funds, Impact Investors, Develop- investing in Africa’s Financial Sector Frontier, specifically focusing ment Finance Institutions, smaller Private Equity funds may invest in on opportunities in Zimbabwe, Sierra Leone and the DRC as well a range of sizes from as small as $100,000 to much greater amounts. as a dynamic session looking at Diaspora finance, remittances and long-term displaced people and the associated growth and invest- How do I meet these investors? ment opportunities offered by this unique situation. Multiple opportunities to meet investors are built into the program, Finally, we are offering smaller companies the opportunity to including an online meeting system which specifically highlights record videos of themselves presenting the merits of their own com- investors allowing delegates to arrange their own one-on-one meet- panies. These videos will then be made available to investors and ings, to networking lunches and panel discussions. Many investors other delegates after AFSIC. 9 The Worldfolio CAN AFRICa’s RISING CONTINUE? With external shocks putting the brakes on Africa’s dramatic economic growth, do its economies have what it takes to continue to rise? Africa, once synonymous with war, famine and poverty, has 3.7 percent in 2017 and 4.2 percent in 2018. Meanwhile, in undergone a dramatic change in fortunes since the turn of its most recent Regional Economic Outlook, the IMF said in the century. Today, six of the world’s ten fastest-growing reference to the recent slowdown that, “although this overall economies are African, and the “Africa Rising” narrative, markedly weaker picture begs the question as to whether popularised by The Economist, has seen the continent’s eco-
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