African pension funds in 10 countries already have $379 billion in assets under management and continue to grow. Are there enough opportunities for them to deploy these investment resources most productively?
Nairobi is ranked the most attractive city for foreign direct investment (FDI) in Africa but North African cities and Johannesburg dominate the continent in an interesting PwC report, highlighting 20 African cities, because cities are the engine of growth worldwide and particularly in Africa.
South Africa’s Public Investment Corporation has established 2 funds and plans to invest at least $1 billion into African investments outside South Africa, including $213 million in the current financial year to March 2015.
Ethiopia saw soaring demand yesterday (4 Dec) for its debut $1bn Eurobond, after a quick US roadshow. Total demand was $2.6bn and the yield on the 10-year bond was settled at a relatively low 6.625%.
9 reasons Africa tops investors’ agenda, Eddy Njoroge told African Securities Exchanges Association, include: economy to rise from $1.1trn to $3.9trn in 5 years, the fastest-growing middle class (from 123m to 1.1bn), population to double to 2.4bn, and record $80bn of foreign investment.
The Ethiopian Government recently closed a $865m financing package to fund part of the development of the country’s giant new railway infrastructure, with 5,060km of rail costing up to $15bn.
China is to build a huge new port and special economic zone in Tanzania worth at least $10 billion. Construction is due to start on 1 July 2015 as the country bids to rival Kenya’s Mombasa as transport hub for East Africa.
Oil products company Total Senegal has an initial public offer (IPO) of shares open until 7 Nov, offering 8.9% of the company in an IPO before listing the African equities on the Bourse Regionale des Valeurs Mobilieres (BRVM).
Low-cost manufacturing is shifting from China to Ethiopia, lured by cheap electricity and labour costs that are a tenth of China’s. Ethiopia is building a name for producing clothes, shoes and other basic goods, while also tackling transport bottlenecks.
Rwanda plans to return to Eurobond markets in 2015 and raise up to $1 billion for infrastructure, including an airport and power plants.
Initial public offers (IPOs) on African stock exchanges for the first half of 2014 has raised capital totalling $808.5 million, compared to a total of $757.5m raised throughout 2013
The Initial Public Offering (IPO) of the Nairobi Securities Exchange Limited is open until 12 August. The NSE is seeking to raise KES 627 million ($7.14m) by selling up to 66,000,000 new shares (some 31% of the equity) at KES 9.50 each, open to domestic and international investors.
Global investors offered a record $8.8bn and Kenya issued $0.5bn in a 5-year Eurobond at 5.875% and $1.5bn of a 10-year Eurobond at 6.875%.
Top speakers including Government leaders, policy-makers, bankers, investors and experts will debate the future of Africa’s debt capital markets on Monday 30 June at the London Stock Exchange for African Debt Capital Markets ADCM 2014 conference organized by African Banker magazine.
The Nairobi Securities Exchange is pushing ahead fast with its demutualization plans and will sell up to a 38% stake in an initial public offering (IPO) in June.
International Financial Law Review (IFLR) Africa Forum on 20 May to focus on innovative financing and M&A for resource and infrastructure investment.