Uncovering hidden investment opportunities in Africa - an article by McKinsey Quarterly
Submitted by admin on Thu, 04/24/2014 - 17:05
By Alastair Green, Conor Kehoe, and Farid Sedjelmaci
"Recent research on the African private-equity market reveals a mismatch between supply and demand for financing that could point to investment opportunities.
Private equity is set to grow rapidly across Africa. Continent-wide demand for capital should increase by 8 % a year between now and 2018. Annual growth could reach 20 % in resource-rich Angola and nine other countries, and $50 billion in total investment is possible over the next decade.
But there will be wide variations by country and industry, and the supply of capital doesn’t seem to match the growing demand. Large international investors often prefer proven investment managers, sizable investments, and diversification across Africa. Those preferences may lead them to overlook some attractive—and growing—country and sector gems."
Investisseurs & Partenaires (I&P) aims to provide SMEs mostly from Western Francophone, with capital, strategic support and technical assistance and believes these actors are key in Africa's development. They record the best growth rates and build a sustainable and evenly distributed growth.