SMEs provide opportunity for Africa to grow its debt market
Investments into private firms in Africa are funded by a relatively low proportion of debt compared to equity, especially in contrast to developed markets, where debt is more readily available and affordable. This is according to RisCura’s latest private equity update of its Bright Africa report, released in October 2017. With a relatively small value...
RisCura wins AGF 2017 Service Provider private equity award
Investment specialists, RisCura, has won the Africa Global Funds (AGF) 2017 Service Provider Awards in the Best Advisory Provider: Private Equity category, for the second consecutive year. RisCura provides investment decision support and offers a wide range of services to the continent’s investor base in listed and unlisted investments. The awards...
Beyond the grid
Despite its rich energy resources, about 600 million people across sub-Saharan Africa do not have access to electricity, but the rise of micro-grids and advances in technology could be the answer to Africa’s power woes. According to market research company, BMI Research, 70% of Africans with access to electricity live in urban areas, while 28%...
Private equity multiples in Africa cost of equity
Risk versus reward is the key determinant of investment activity. Cost of equity is representative of the investor’s evaluation of the risk that the enterprise is exposed to. Elevated cost of equity and limited availability of capital created headwinds for many African countries during 2016. In the current year, this appears to be easing, with...
Private equity multiples in Africa by deal size
There is a clear relationship between the transaction size and the EV/EBITDA multiple used to price the investment. Higher priced transactions tend to take place at the larger end of the spectrum, in this case in the category of companies with Enterprise Value greater than USD 250m. At an Enterprise Value of less than USD...
Private equity fundraising over time
test_The increase in private equity fundraising in 2015 is evidence of the strong interest in investing in Africa’s real economy, despite the recent turmoil in which many African countries find themselves. In the face of the decline in commodity prices, oil in particular, currencies have come under strain impacting liquidity and trade. The slowdown...
Should pension funds be financing infrastructure in Africa?
Africa’s infrastructure backlog is well-documented, with the World Bank placing it at an annual value of approximately US$93 billion a year. Globally, infrastructure is increasingly being considered as an accepted asset class within a number of pension plans’ investment policy statements. While acceptance is slow, it is growing. The OECD Annual...
Retirement industry moves toward a Cradle to Grave approach
In an industry-changing move, the amended Pension Fund Act regulations come into effect on 1 September 2017 bringing about welcomed reforms. But, implementation could pose challenges for trustee boards that are already grappling with limited governance bandwidth. The amendments, also known as the Retirement Funds Default Regulations, have been in the...
Rethinking retirement – why not take the bus?
As people the world over live longer, healthier lives the debate around the design and funding of pension fund schemes shows no sign of subsiding, writes RisCura’s Investment Research Analyst, Fran Troskie. In 2014, then-UK Pensions Minister, Steve Webb, (in)famously advised pensioners to buy Lamborghinis. Despite the uproar at the time, his intention...