Investment Trends Africa And Middle East November 2011

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Investment Trends — Africa and Middle East is a monthly report that key investment activities, which have taken place in Africa and the Middle East and North Africa (MENA) region in a particular …

Investment Trends — Africa and Middle East is a monthly report that key investment activities, which have taken place in Africa and the Middle East and North Africa (MENA) region in a particular month.



The report covers all the major investments news across various sectors, which are summarized and presented in a concise manner, so that the reader gets only the relevant information in minimal possible time. The report acts as a snapshot of investment activities for readers who do not have time to follow the daily news and extract the required information.

In order to book your subscription, please visit www.indalytics.com

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  • 1. Investment Trends Africa and Middle East INDALYTICS ADVISORS November 2011 November 2011 Page 1 © 2011, Indalytics AdvisorsIndalytics.com I info@indalytics.com I © 2011, Indalytics Advisors
  • 2. Investment Trends Africa and Middle East November 2011About Investment Trends Africa and Middle EastInvestment Trends Africa and Middle East is a monthly report that key investment activities, whichhave taken place in Africa and the Middle East and North Africa (MENA) region in a particular month.The report covers all the major investments news across various sectors, which are summarized andpresented in a concise manner, so that the reader gets only the relevant information in minimal possibletime. The report acts as a snapshot of investment activities for readers who do not have time to followthe daily news and extract the required information.The reports are ideal for: Organizations / CEOs who are planning to invest, or want to know the latest investment activities taking place in Africa and MENA region Consulting firms / Consultants who help organizations to set-up their businesses in Africa and MENA region Analysts / Market research firms who track the investment activities for their end clients Other readers who follow the region for updating their knowledgeIn order to book your annual subscription of Investment Trends Africa and Middle East, mail us atsubscription@indalytics.com, or visit us at www.indalytics.com. Page 2 © 2011, Indalytics Advisors
  • 3. Investment Trends Africa and Middle East November 2011 Catalyst Handling and Water Jetting. PostIn this Report acquisition, RISALs current shareholder, Saudi Arabia based A.A.Turki Group of Companies (ATCO), which operates in governmental, industrial and consumerOctober 2011 issue of Investment Trends sectors, will retain a 49% stake in theAfrica and Middle East focuses on the key company.investment activities that have taken place inthe African continent, as well as the MiddleEast and North Africa (MENA) region. Iraq is poised to become a major investment opportunity for companies in energy sector, as its approved US$37 billion (Dh135.9Key investment activities in the region are as billion) program is expected to be started.follows: The country currently has the third largest oil reserves in the world and pumps 2.75 million barrels per day of crude. However, because of its underdeveloped infrastructure, it has to Energy and Natural Resources import approximately 30% of the petrol for domestic consumption, and is also unable to meet half of its electricity demand.High oil prices are leading to increasedinvesting in the MENA region .Oil producing nations in the region are It is expected that the country would be ableexpected to invest approximately US$525 to increase its transformation of crude oil tobillion over 2012 2016 on energy products. fuels by 900,000 barrels per day once theSaudi Arabia is expected to lead the proposed projects get completed. In order toinvestments with approximately US$141 build up its infrastructure of processing crudebillion, which will be followed by the UAE, oil, Iraq is further expected to open gatewayswhich is having a budget of approximately for companies in energy sector.US$76 billion. China is planning to invest US$2.5 billion inGlobal private investment firm Energy Capital geology and mineral resources projects inGroup is acquiring 51% stake in Saudi Arabia- South Africa through Foreign Directbased Oil & Gas industrial cleaning and Investment (FDI) route. China has emerged asenvironmental services company, Redland an important export destination for SouthIndustrial Services Arabia Ltd, (RISAL). RISAL Africa, which currently exports approximatelyprimarily operates in four key areas, namely: US$5.5 billion worth of minerals to ChinaWaste Management, Chemical cleaning, Page 3 © 2011, Indalytics Advisors
  • 4. Investment Trends Africa and Middle East November 2011every year. The investments will be used in copper cathodes and copper in concentrates,the projects, which will help both the for the full-year 2011.countries to increase their trade, as well asjobs in the sector. Financial ServicesEmerging markets investment firm,Renaissance Group, is planning to invest in The Saudi insurance market, which is themineral resources in East Africa region. The largest in the MENA region, has witnessed afirm, which has a portfolio of US$750 million growth of 12% in Gross Written Premiums from SAR14.6 billion (US$3.9 billion) in 2009estate projects, is now considering mining to SAR16.4 billion (US$4.4 billion) in 2010. Asdeals in Kenya and Uganda. the sector has high market potential, many new companies are investing in it to increase their presence. One such company is AXA Cooperative Insurance Company in Saudiinvestors due to its reserves of gold, base Arabia, which has signed a contract withmetals, diamonds, ferrous minerals, a variety Wasilah Insurance Agency.of gemstones, and coal. Renaissance Groupalready has invested in a coalmine inMozambique. Under the contract, Wasilah will exclusively market, products in the Kingdom. Wasilah will sellFurther, Australian firm Base Resources has insurance through its main branch in Riyadh.also recently announced that it was investing It will then open up around 10 point of salesUS$310 million in mineral sands mining in the next 3 years in the three main cities ofproject in Kwale at the Kenyan Coast. the Kingdom. It will target primarily the retail and SME customers of AXA.Hong Kong-listed unit of state-owned ChinaMinmetals Group, Minmetals Resources South African banking sector is attractingLimited, is planning to buy Congo-focused investments from all parts of the world.copper miner Anvil Mining Limited for Second largest US lender, JPMorgan Chase & Kinsevere Co., which has been operating in South AfricaStage I HMS plant in Congo has produced since 1998, is now expanding its corporate16,538 tons of copper in concentrate form in banking services in the nation. The bank will2010. The company now expects to produce36,000 38,000 tons of copper, in form of offer them lending, as well as treasury and Page 4 © 2011, Indalytics Advisors
  • 5. Africa Investment Trends November 2011foreign exchange services. Due to the will be used to invest in the startupincreasing attractiveness in the sector, other companies operating in Information andmultinational banks such as BNP Paribas SA, Communications Technology (ICT), mobileCitigroup Inc, and Barclays Plc are also and digital media. The investments will beexpanding their corporate banking services in used either during the initial US$15000the country. funding stage or beyond.Nigerian banking sector is expected to Housing, Infrastructure & Real Estatewitness increased mergers and acquisitionsactivity in future. The sector is having lowestprice-to-book value ratio in three years. As Chinathe acquirers are finding valuations in the infrastructure and housing sectors. China willsector more realistic than before, they are be investing its resources in the country toconsidering acquiring Nigerian banks to build approximately 50,000 homes in nextexpand in the oil-rich country. four years, which would be worth US$5 billion. Bahrain is expected to witness increase in Chinese investments as theNigeria based Sterling Bank Plc has announced political turmoil in the MENA region isbuying Equitorial Trust Bank Plc. As a result, settling down, and the member countries are coming up with investor-friendly policies toconsideration of buying the government- attract foreign investment.rescued Sterling Bank earlier, mightreconsider the option. Similarly, anotherfailed Nigerian bank, Oceaninc Bank is being Financing of the first public-private-acquired by the major African lender,Ecobank Transnational Inc. Also, Access Bank sector has been completed by a consortiumPlc is planning to acquire Intercontinental led by Samsung Engineering. With Invest ADBank Plc. and United Utilities as partners of Samsung Engineering, the Muharraq Wastewater Treatment Plant, involves a greenfield 100,000One of the early stage and seed investment m3/day wastewater treatment plant and a 15companies in MENA region, Oasis500, has kilometers deep gravity sewer conveyancesecured a US$1 million investment from system under an availability based concessionTurkey-based venture capital fund, TimarVentures. The investment, which constitutes was Macquarie Capital, which arranged athe first round funding of the Oasis500 US$22 million financing solution for 22 yearsVentures 1, the investment arm of Oasis500, Page 5 © 2011, Indalytics Advisors
  • 6. Investment Trends Africa and Middle East November 2011through its teams in the UAE and South projects by the end of quarter endingKorea. September 2011, up from EGP31.9 billion (US$5.3 billion) at the end of 2010.In order to prepare itself for the 2022 FIFAWorld Cup, Qatar is expected to invest Egyptian private equity firm Citadel Capitalapproximately US$80-100 billion by 2016 in will be funding a five-year project to improveinfrastructure. The government is planning to transport links between Kenya and Uganda.invest approximately US$45 billion budget for The firm will invest US$234 million in Riftdeveloping the countrys rail and road Valley Railways, which operates 2,352 km ofnetworks, including US$824 million for 13 track linking the Indian Ocean Kenyan port oflarge infrastructure projects across the Mombassa to the Ugandan capital Kampala,country through its Public Works Authority, for a 25-year concession period. The fundingAshghal. The projects include the Lusail will be a mix of both new debt, as well asHighway (US$687 million), the Dukhan equity.Highway (US$300 million), the Dohaexpressway (US$27 million), a 3-lane highwayin Barwa City, and the Najma road. Metals and MiningEgypt still remains as a promising investment Bahrain based United Steel Company (SULB),destination, despite the political disturbances. a joint venture between Gulf United SteelThe country, which refused InternationalMonetary Fund (IMF) loan of EUR2.2 billion Yamato Kogyo Co. Ltd. (49%), has acquired(US$3.1 billion) shortly after the revolution, is Saudi Arabia based United Gulf Steel Millexpected to grow at a fast pace. Company Limited (UGS), in an attempt to turn it around to a profit making entity. UGS, which is facing financial difficulties, has anEgypts biggest listed property developer annual manufacturing capacity of 450,000 tonsTalaat Moustafa Group (TMG) is planning to of light & medium sections and beams. Theinvest approximately EGP18 billion (US$3billion) on its two main projects over next integrated facility in the Kingdom of Bahrain.three years. TMG will invest EGP6 billion(US$1 billion) each year on its flagshipMadinaty and Rehab developments. The Omancompany has been investing in projects, investment arm, Takamul Investmentdespite the political disturbances. It had Company SAOC, is planning to establish aEGP33.6 billion (US$5.6 billion) invested into specialty steel products plant at Sohar, Oman. Page 6 © 2011, Indalytics Advisors
  • 7. Africa Investment Trends November 2011The project, costing approximately US$30 Indian mobile telecommunications companymillion is promoted by Gulf Steel Specialty Bharti Airtel Limited will be investingIndustry LLC, which is a joint venture approximately US$100 million over nextbetween Takamul and Singapore-based Global three years in Rwanda. The investment, whichSteel Industries Pte Ltd (subsidiary of BH is by far the largest by any Indian company,Global Marine Limited, Singapore). The plant will be used to operate 2G and 3G GSMwill have a capacity of 60,000 tons per annum, services in Rwanda. Bharti Airtel had acquiredand will manufacture specialty steel wires and the Sub-Saharan business of Kuwait-basedother related steel products. mobile telecommunications company Zain Group in 2010. Post Rwanda, the company will now have presence in 17 countries across Africa. Telecommunications Due to increase in its subscribers in Gulf and Egypt, Middle East pay-TV operator OSN isGlobal information technology company, IBM planning to invest over US$1 billion inCorporation, recently opened up its new programming and populating its new highbranch office at Luanda, Angola, as a part of definition Arabic entertainment channelits strategy of expanding its footprint in the Yahala! HD. The investments will be done foremerging markets of Africa. The Luanda office acquiring content for Yahala! HD, which isis expected to complement IBMs other expected to provide 300 hours of OSNbranch offices in the region, and help it deliver produced programming in its maiden year.solutions and services to its growing clientelein Africa. OthersIBM has opened similar branches in Dar-e-Salaam, Tanzania and Dakar, Senegal, in the Professional services firm Price Waterhousefirst half of 2011. The company is currently Coopers is opening its China Desk in Southserving number of clients in the region, across Africa. The desk will act as a point of contactvarious industries such as government, between Chinese companies entering Southtelecommunications, finance, and oil & gas. In Africa, and vice versa. It will offer businessAngola, the company is working with one of solutions to potential investors in Souththe major banks to help them transform their Africa, and will also facilitate joint venturesbanking technology infrastructure. and business opportunities between the two countries. The desk will have Mandarin- speaking staff, which will provide expertise and skills to Chinese investors. Page 7 © 2011, Indalytics Advisors
  • 8. Investment Trends Africa and Middle East November 2011FAW South Africa (FAW SA), a joint Bahrainventure between Chinese vehicle Babyshop, is planning to invest approximatelymanufacturer, FAW and a local South African AED250million (US$68 million) per year overcompany, is expected to start construction of next five years, in order to increase itsa US$100-million truck and passenger car footprint across the MENA region. Babyshopplant in the Eastern Cape, South Africa, in is expected to add 33 new outlets to its globalQ1-2012. The venture, funded by China portfolio, and increase its retail space byFAW, will have a plant, producing 5,000 250,000 square feet by mid of 2012.trucks annually, along with light commercialvehicles and passenger cars. in UAE portfolio and two in Kenya. Page 8 © 2011, Indalytics Advisors
  • 9. Investment Trends Africa and Middle East November 2011Companies Mentioned in this ReportA.A.Turki Group of Companies Invest ADAccess Bank Plc JPMorgan Chase & Co.Anvil Mining Ltd. Macquarie CapitalAXA Cooperative Insurance Company Minmetals Resources Ltd.Babyshop Oasis500Barclays Plc Oceaninc BankBase Resources Oman Oil CompanyBH Global Marine Ltd. OSNBharti Airtel Ltd. Price Waterhouse CoopersBNP Paribas SA Redland Industrial Services Arabia Ltd.China Minmetals Group Renaissance GroupCitadel Capital Rift Valley RailwaysCitigroup Inc Samsung EngineeringEcobank Transnational Inc Sterling Bank PlcEnergy Capital Group Takamul Investment Company SAOCEquitorial Trust Bank Plc. Talaat Moustafa GroupFAW South Africa Timar VenturesFirst Rand United Gulf Steel Mill Company Ltd.Global Steel Industries Pte Ltd United Steel CompanyGulf Steel Specialty Industry LLC United UtilitiesGulf United Steel Holding Company Wasilah Insurance AgencyIBM Corporation Yamato Kogyo Co. Ltd.Intercontinental Bank Plc Page 9 © 2011, Indalytics Advisors
  • 10. Investment Trends Africa and Middle East November 2011DisclaimerThe information contained in this report is of a general nature and is not intended to address any particularinformation, there can be no guarantee that such information is accurate as of the date it is received or that it willcontinue to be accurate in the future. Indalytics Advisors Private Limited does not guarantee that the informationcontained in this report is authentic and reliable. No one should act upon such information without appropriateprofessional advice after a thorough examination of the particular situation.In order to book your annual subscription of Investment Trends Africa and Middle East, mail us atsubscription@indalytics.com, or visit us at www.indalytics.com. Publication Volume: IT11-011 Publication Date November 2011 © 2011 Indalytics Advisors Private Limited For further information, please contact info@indalytics.com Page 10 © 2011, Indalytics Advisors