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Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires
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Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires

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Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires - Africa, investments, sme's, Jean-Michel Severino

Towards a new african economy - An analysis by I&P / Investisseurs & Partenaires - Africa, investments, sme's, Jean-Michel Severino

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  • 1. TOWARDS A NEW AFRICAN ECONOMY November 2012
  • 2. SUMMARY Part 1 Sustained economic growth in Sub-Saharan Africa (SSA) Part 2 … Remains to sustain Part 3 But economic growth which seduces and promotes the development of Capital Investment Part 4 And that stimulates the development of African business 2NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 3. 1 SUSTAINED ECONOMIC GROWTH IN SUB-Saharan AFRICA (SSA) 3NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 4. SUSTAINABLE ECONOMIC GROWTH • African growth is characterized by good macroeconomic indicators o Inflation decreasing: 15% in 2000 to 8.1% in 2011 o Mastery of foreign debt from 63% of GDP in 2000 to 22.2% in 2012 • And is based on several structural phenomena, demographic and geographic 1. export growth 2. improved terms of trade, 3. strong domestic demand o final consumption up o growth of public and private investment 5. significant population growth and increasing urbanization 6. transfers significant and steady migrants The real GDP of Sub-Saharan Africa (SSA) has increased on average by 3.4% per year between 1990 and 2010, from 273 to USD 573 billion. NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 4
  • 5. 1. EXPORT GROWTH + 117% between 2000 and 2010. They represent 33% of GDP in 2011, against 26% in 1990. 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 50 100 150 200 250 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 IndiceBase100en2000 Sources : World Bank Indicators, CNUCED Exportations de biens et services (% du PIB) Indice du volume des exportations (2000=100) NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 5
  • 6. 2. THE IMPROVEMENT IN THE TERMS OF TRADE + 60% between 2000 and 2010 80 90 100 110 120 130 140 150 160 170 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Indicebase100en2000 Source : CNUCED 2011 Improvement in the terms of trade in SSA NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 6
  • 7. … SOURCE INPUT LARGEST CURRENCY Between 2004 and 2012, foreign exchange reserves in Sub-Saharan Africa increased by 60%. 0 2 4 6 8 2004 2005 2006 2007 2008 2009 2010 2011 2012 Monthsofimportsofgoodsand services Source : World Economic outlook avril 2012 (IMF) Foreign exchange reserves of Sub-Saharan countries NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 7
  • 8. 3. INCREASE THE FINAL HOUSEHOLD CONSUMPTION + 4,4% per year between 2000 and 2010 0 50 100 150 200 250 300 350 400 450 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EnmilliardsUSDconstants Source : Africa Development Indicators, 2011 Final consumption expenditure in Sub-Saharan Africa NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 8
  • 9. … PUBLIC AND PRIVATE INVESTMENT AND STRENGTHEN THE DOMESTIC DEMAND. + 109% in 10 years 10% 11% 11% 12% 12% 13% 13% 14% 14% 15% 15% 0 20 40 60 80 100 120 140 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EnMilliardsUSDconstants Source : World Bank Indicators, 2012 FBCF du secteur public et privé FBCF du secteur privé, en % du PIB Public and private investment NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 9
  • 10. 4. TRANSFERS OF MIGRANTS Important source of income for local households, they amounted to USD 21.6 billion in 2010, nearly half of public development assistance flows. 0% 1% 1% 2% 2% 3% 3% 0 5 10 15 20 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 MilliardsUSD Source : UNCTAD 2011 Remittances from migrants in the direction of Sub-Saharan countries En USD courants En % du PIB NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 10
  • 11. MAJOR POPULATION GROWTH, ESPECIALLY IN THE CITY, WHICH RESULTS IN AN INCREASE IN BUSINESS 71% over the past 20 years Urbanization: 36% in 2011 against 28% in 1990 69,4% 69,6% 69,8% 70,0% 70,2% 70,4% 70,6% 70,8% 0 100 200 300 400 500 600 700 800 900 1000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Millions Source : World Bank Indicators Population totale Population urbaine Taux d'activité NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 11
  • 12. 2 GROWTH TO SUSTAIN 12NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 13. GROWTH IN SUB-SAHARAN AFRICA REMAINS HETEROGENEOUS, FRAGILE AND INSUFFICIENT • Heterogeneous growth: 48 sub-Saharan African countries do not face the same problems of development o The difference in GDP between middle-income countries and fragile states has doubled in 20 years • A fragile growth: balance of commodity exports weakens undiversified by exposing them to the volatility of world economies o Outside of South Africa, Sub-Saharan Africa achieve at least 75% of their exports with only 8 products o In six of them, one type of export accounts for 85% of total exports • Insufficient growth: the development gap with other regions of the world remain significant o In 2011, the African HDI remains below 52% in the North American HDI, against 56% in 1980 13NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 14. 1. GROWTH UNEVENLY DISTRIBUTED The International Monetary Fund distinguishes 4 groups of countries: • Oil countries: Angola, Cameroon, Chad, Congo, Equatorial Guinea, Gabon, Nigeria • Middle income countries: Botswana, Cape Verde, Ghana, Lesotho, Mauritius, Namibia, Senegal, Seychelles, South Africa, Swaziland, Zambia • Low-income countries: Benin, Burkina Faso, Ethiopia, Gambia, Kenya, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Tanzania, Uganda • Fragile States: Burundi, Central African Republic, Comoros, Democratic Republic of Congo, Côte d'Ivoire, Eritrea, Guinea, Guinea-Bissau, Liberia, Togo, Zimbabwe 14NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 15. TESTIFY IN THE GAPS BETWEEN GROWTH RATE OF THESE GROUPS OF COUNTRIES… 15 > 10 percentage points as between 2000 and 2005 -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 Source : World Bank Indicators, 2012 Rate of GDP growth in SSA Pays pétroliers Pays à revenu intermédiaire Pays à faible revenu Etats Fragiles Afrique subsaharienne NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 16. …AND GDP GROWTH FOR 20 YEARS. 16 From 1990 to 2010, the GDP gap between middle-income countries and fragile states has nearly doubled, reaching USD 201 billion in 2010 against 104 in 1990. 0 50 100 150 200 250 Milliards Source : World Bank Indicators, 2012 Real GDP (2000) in SSA Pays pétroliers Pays à revenu intermédiaire Pays à faible revenu Etats Fragiles NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 17. 2. A FRAGILE GROWTH… • Exports from Sub-Saharan Africa are largely composed of unprocessed raw materials. This strategy has important disadvantages o Dutch disease: over-appreciation of the exchange rate which hampers the export manufacturing sectors o Grabbing investment and neglect other productive sectors (more) o Exposure to the downturn in international prices o Weak effects of trainings o Kleptocracy - civil wars • In addition, sub-Saharan Africa is experiencing a very important infrastructure needs. o In particular, it needs to increase its 7000 MWatt annual capacity of electricity generation o The World Bank estimates the necessary investment to $ 93 billion per year, 40% for energy 17NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 18. ... BASED PRIMARILY ON EXPORTS OF RAW MATERIALS 18 0 10 20 30 40 50 60 70 80 90 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00% 90,00% 100,00% Tanzania Madagascar Djibouti Namibia Zimbabwe Somalie Congo,Dem.Rep. Malawi Mozambique Gambia,The Cameroon Togo Seychelles Lesotho Burundi Rwanda Mali SaoToméetPrincipe Coted'Ivoire CapeVerde Ghana Mauritanie Congo,Rep. Chad Nombredeproduitsreprésentant75%desexportations Intheshareofexports Source : Africa Development Indicators – Factoid 2011 Diversification of exports from SSA countries in 2009 Part du top 3 des produits exportés dans les exportations totales Nombre de produits représentant plus de 75% des exportations For 3/4 of SSA countries, the first three products exported are raw materials, averaging 2/3 of exports. NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 19. 3. GROWTH UNEVENLY DISTRIBUTED THAT DOES NOT ALWAYS SUPPORTS DEVELOPMENT • Sub-Saharan Africa has the rate of extreme poverty the most important in the world despite a decrease of 10 points in 20 years o Between 1990 and 2000, the share of population living on less than $ 1.25 / day increased from 56.5% to 47.5% o However, population growth is the absolute number of poor has increased by 33% over the same period • For growth generates human development, economic growth must be inclusive and redistributive. Countries as Equatorial Guinea illustrate that this is not always the case. Between 1990 and 2010: o per capita income has increased by 16 o while it remains the 13th country in life expectancy the lowest in the world (51) 19NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 20. WHICH RESULTED IN SIGNIFICANT INEQUALITIES 20 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 60,8% 20,9% 8,7% 4,7% 4,8% 36,5% 24,0% 9,9% 10,8% 18,8% Source : AfDB Market Brief (2011) Population and income distribution by classes in Africa Population Revenu In 2010, six of the most unequal countries in the world were in SSA, especially in southern Africa. After Latin America, this is the second part of the world with the greatest inequality. NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 21. AND DOES NOT ALLOW THE SSA TO REDUCE THE GAP WITH THE BRICS AND OECD COUNTRIES The gap in life expectancy has increased over the past 40 years, from 14.6 years in 1970 to 19 in 2011. 0 5 10 15 20 25 30 1970 1980 1985 1990 1995 2000 2000 2005 2006 2007 2008 2009 2010 2011 Numberofyears Source : UNDAES 2011 Difference in life expectancy Différence AfSS - OCDE Différence AfSS - Brésil Différence AfSS - Chine Différence AfSS - Inde NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 21
  • 22. GROWTH STILL NOT ENOUGH Life expectancy in SSA increased by 10 years since 1970 to $ 54 in 2011. However, this figure remains low compared to the performance of other regions. 40 45 50 55 60 65 70 75 80 85 1970 1980 1985 1990 1995 2000 2000 2005 2006 2007 2008 2009 2010 2011 Numberofyear Source : UNDAES 2011 Life expectancy at birth Brésil Chine Inde AfSS OCDE NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 22
  • 23. …EFFECTIVELY FIGHT TO THE POVERTY REDUCTION The development gap between SSA and other regions of the world just to subside despite an increase of 25% of the African HDI over the past 30 years. 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 Source : PNUD 2012 Human Development Index Asie Amérique du Nord Afrique subsaharienne NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 23
  • 24. FINALLY, THE AFRICAN GROWTH MUST BE INCLUSIVE • Africa has the youngest population in the world and it is growing rapidly o 200 million inhabitants aged 15-24 years in 2011 o 10 million new entrants to the job market each year o nearly a billion of jobseekers in 2040 • Mass unemployment coupled with a highly urban population may have serious consequences in political and social terms • A generator inclusive job growth, requires the development of the private sector which is responsible for 90% of employment in developing countries 24NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 25. FOCUS AREAS OF INTERVENTION I&P Categories Countries of operation in 2012 Petroleum Exporting Countries Cameroon Middle-income countries Ghana Maurice Namibia Senegal Low-income countries Benin Burkina Faso Madagascar Mali Niger Uganda Fragile countries Comoros Congo, Democratic Republic of Congo Ivoiry Coast Mauritania Togo NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 25
  • 26. GROWTH RATE LOWER BUT ALSO VOLATILE THAN THE REST OF THE SUB-SAHARAN AFRICA -1% 0% 1% 2% 3% 4% 5% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source : World Bank Indicators, 2012. GDP Growth rate per Capita I&P AfSS hors I&P Approx. 2.3% growth in 2010 NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 26
  • 27. STANDARD OF LIVING PER CAPITA ALMOST IDENTICAL 0 100 200 300 400 500 600 700 800 900 1000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EnUSDconstants Source : World Bank Indicators, 2012 GDP per Capita I&P AfSS hors I&P < $ 900 per capita NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 27
  • 28. 3 AN ECONOMIC GROWTH WHICH SEDUCES AND PROMOTES THE DEVELOPEMENT OF CAPITAL INVESTMENT 28NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 29. 3 MAJOR EVENTS ARE TO NOTE 1. The sector increased significantly and knows good prospects 2. The distribution of capital investment improves and targets change 3. Increased Foreign Direct Investment NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 29
  • 30. 1. CAPITAL INVESTMENT PROGRESS IN AFRICA • Over the period 2008-2011, SSA has received an average 4.4% of the funds raised for all emerging countries, representing 3.1% of the investment (the major remaining area of Asia) • With over less than 100 million and less than greater than $ 1 billion fund money for the rest of the emerging markets • Relative to GDP, the activity of capital investment in SSA was comparable to that of BRIC in 2008 and 2009 (0.29% and 0.15% of GDP) 30NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 31. THE ECONOMIC CRISIS HAS SLOWED THE FLOW, WITHOUT STOPPING 31 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 EnmillionsdedollarsEU Fundraising and investment in private equity in Sub-Saharan Africa Levée de fonds Investissements 1.3 billion of funds raised to $ 1 billion invested in private equity in 2011 NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 32. THE SECTOR KNOWS GOOD PROSPECTS • 67 % of limited partners interviewed believe attractive Africa in 2011 • 50% plan to make investments in sub-Saharan Africa by 2013 • A growing number of very large businesses include the African continent among their top strategic targets 32NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 33. 2. THE DISTRIBUTION OF CAPITAL INVESTMENT GROWS ON THE CONTINENT • The activity is concentrated in a handful of markets: South Africa, Kenya, Nigeria ... • But diversification is at work: the three countries in 2010 had fallen to "only" 56% of the total number of investments (against 74% and 73% in 2008 and 2009) • Among the new countries attraction: Benin, Congo, Ghana, Liberia, Madagascar, Tanzania ... 33NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 34. CHANGE TARGETS The banking and the infrastructure sector hold a prominent place in the space of capital investment. In 2010, however, more than half of the operations were carried out in areas such as health and food media and telecommunications 27% 18% 13% 10% 9% 9% 5% 9% Sectoral distribution of investments in Sub- Saharan Africa (2009 - 2010) Infrastructure Banking & Financial Services Industrials & Manufacturing Services Energy & Natural Resources Media & Telecom Agribusiness Other NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 34
  • 35. 3. SIGNIFICANT DEVELOPMENT FOREIGN DIRECT INVESTMENT X 5 to sub-Saharan Africa since 2000 3 USD 000 billion is invested in the space of 10 years. 0 1 2 3 4 5 6 0 10 20 30 40 50 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Milliards Source : UNCTAD 2011 Inward flow foreign direct investment in Sub-Saharan Africa En dollars EU courants, taux de change courants % de PIB NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 35
  • 36. EN TÉMOIGNE LE NIVEAU DES INVESTISSEMENTS PRIVÉS DANS LES TÉLÉCOMS X 4 between 2000 to 2009, reaching $ 12 billion in 2009. 0 2 4 6 8 10 12 14 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 EnmilliardsUSDcourants Source : World Bank Indicators, 2012 Investment in telecoms with private participation in Sub-Saharan Africa NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 36
  • 37. 4 GROWTH WHICH PROMOTES THE DEVELOPMENT OF AFRICAN BUSINESSES 37NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 38. SMES HOLD VITAL ROLE IN ECONOMIC DEVELOPMENT IN SUB-SAHARAN AFRICA SMEs now have a flexible multiple barriers to their creation and growth, by improving the legal and administrative context: 1. Reducing the time of registration of property rights 2. Reducing the delays in obtaining operating licenses 3. Reducing the costs associated with starting a business in Sub-Saharan Africa 38 SMEs contribute to 30% of GDP and 17% of jobs created. NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 39. 1. REDUCED REGISTRATION DEADLINES PROPERTY RIGHTS 39 40 50 60 70 80 90 100 110 120 2004 2005 2006 2007 2008 2009 2010 Numberofdays–Sub-SaharanAfrica Source : Doing Business 2011 - 60 days between 2004 to 2010 NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 40. 2. TIME LIMIT FOR OBTAINING A LICENSE 40 200 205 210 215 220 225 230 235 2005 2006 2007 2008 2009 2010 Numberofdays–Sub-SaharanAfrica Source : Doing Business 2011 - 44% between 2004 to 2010, 53 days or less NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 41. 3. COST OF PROCEDURES FOR THE ESTABLISHMENT OF A COMPANY 41 0% 50% 100% 150% 200% 250% 300% 350% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Asa%ofGNI-Sub-SaharanAfrica Source : Doing Business 2011 - 70% between 2003 to 2011 NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC
  • 42. The phenomenon of the "missing middle" is partly explained by the lack of access to finance for small enterprises. However we see in developing economies a significant lack of formal SMEs: THE MISSING MIDDLE Source : http://www.hks.harvard.edu/centers/cid/programs/entrepreneurial-finance-lab-research-initiative/the-missing-middle Numberoffirms Micro High-Income Countries SMEs Large Numberoffirms Micro Low-Income Countries SMEs Large NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 42
  • 43. THE « MISSING MIDDLE » Micro-Enterprises (Invest.: 100€ to 50K€) Mesofinance Middle Size Companies (Invest.: 150K€ to 1000K€) LARGE COMPANIES (Invest.: >1M€) Local Banks, international investors MICROFINANCE INSTITUTIONS > Gap funding Today it is difficult to invest in these SMEs because: •The lack of reliable accounting •A lack of management culture •The high cost of monitoring and evaluation in comparison with the amounts invested NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 43
  • 44. Investisseurs & Partenaires (I&P) intends to meet the financing needs and support these businesses and thus contribute to the growth and development of the African continent. NOVEMBER 2012 - TOWARDS A NEW AFRICAN ECONOMIC 44

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