Supporting the growth of the African ICT and telecoms sector through finance and investment.

1. Growth and Investment Panel:
Funding options
Panellists
Eng Baxton Sirewu, Acting Director General, POTRAZ, Zimbabwe
Sunil Joshi, MD & CEO, Neotel (Pty) Limited, South Africa
Robert Schumann, Principle, Analysis Mason, South Africa
Moderator
Alon Avnon, Managing Director, BizDevOS
IAD Summit, Victoria Falls, April 2015

2. Five Common Myths about Africa
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not enable
certain forms of finance
International investors are very picky

3. Five Common Myths
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not enable
certain forms of finance
International investors are very picky

4. Foreign Direct Investment (FDI)
Mixed picture for the Continent.
Sub-Saharan Africa’s FDI is
growing strong

5. Other Investment Channels
Strong investment growth across all non-governmental sources
African Public Offerings in London
“…there are more than 100 companies
listed in London…”
“…10 African countries listed on LSE in
2013, double 2012’s...”
“… From 2008 to 2012 African companies
raised $6.9Bn…”
Baker & McKinzie
“… we’ll continue a strong IPO market as
investor appetite to African equities just
keep growing…”
Goldman-Sachs
CAGR: 49%
CAGR: 10%
Source: economist.com

6. Five Common Myths
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not enable
certain forms of finance
International investors are very picky

7. Perceptions is everything…..
Experienced African
investors view investment
in Africa significantly more
positive than others

8. Perceptions tend to (eventually) converge with reality
Key Ecosystem indicators are in the same range as the
BRICs
Rwanda 32
South Africa 41
Ghana 67
Zambia 83
Russia 92
China 96
Brazil 116
Ethiopia 125
Kenya 129
Uganda 132
India 134
Mozambique 139
Tanzania 145
Nigeria 147
Côte d'Ivoire 167
Cameroon 168
Senegal 178
Angola 179
Ease of Doing
Business Ranking

9. Five Common Myths
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not enable
certain forms of finance
International investors are very picky

10. Not in the right space or geography
Africa is not about minerals
only and not only South-
Africa any longer
Source: The Search
for Returns

11. Investment pattern
The African private equity investment
model is catching up with practices in
the developed world

12. Five Common Myths
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not
enable certain forms of finance
International investors are very picky

13. Raising money from the public…..
IPO is a limited route to raise fund or exit, but not impossible.
As the economy grows and volume increases, public listing will become
accessible to more companies.
African Public Offerings in
London
“…there are more than 100
companies listed in London…”
“…10 African countries listed on LSE
in 2013, double 2012’s...”
“… From 2008 to 2012 African
companies raised $6.9Bn…”
Baker & McKenzie
“… we’ll continue a strong IPO market
as investor appetite to African
equities just keep growing…”
Goldman-Sachs
Source: RisCura, ASEA
Number

14. The oldest form of finance….
Although debt is available to African
enterprises, it is not being used to the
same extent as in other countries.
An Opportunity?
$0-25M $25-50M $50-100M >$100M
African
Debt %
African
Equity %
Global
Debt %
Source: RisCura, Pitchbook

15. Five Common Myths
There is not enough money for investment in Africa
Investors do not have the appetite for the level of risk in
Africa
The project / venture is too big / small, too early / too
mature, or not in the right space
Regulatory and legal framework ecosystem does not enable
certain forms of finance
International investors are very picky

16. Yes!!! Investors are very picky…
But,
Africa’s risk adjusted multipliers
are sensible

17. Investors deserve the credit for….
Picking the right space and the right
location