Growth Through Private Equity In Africa

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African Development Bank Presentation on financing growth through Private Equity in Africa

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Growth Through Private Equity In Africa

  1. 1. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSGrowth throughPrivate Equity Investments in Africa
  2. 2. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS AfDB in Private EquityBackgoundAfDB Private Sector Operations in PrivateEquity FundsAfDB Annual Meetings: “Growth throughPrivate Equity Investments in Africa”Examples of Active AfDB Private SectorOperations in Private Equity Funds
  3. 3. AFRICAN DEVELOPMENT BANK GROUPPRIVATE SECTOR OPERATIONS Background
  4. 4. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS AfDB in Private EquityThe African Development Bank (AfDB)’s Private Equity has seen a significant growthduring the last past years making the industry and important source of corporatefinancing and thereby an important driver in economic prosperity.  Private Equity is a key pillar for the development of the African private sector;  AfDB has invested more than USD 1 billion in Private Equity with more than 60% being indirectly through Private Equity Funds;  AfDB’s Investments in PE Funds has helped develop domestic and foreign investors interest in African Private Equity and strengthen the profile of the industry on the continent.
  5. 5. AFRICAN DEVELOPMENT BANK GROUPPRIVATE SECTOR OPERATIONS Private Equity USD 1 billion 105 million Indirect Direct Investments Investments USD 203 million USD 902 million Financial DFIs Institutions PE Funds
  6. 6. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS AfDB Private SectorOperations in Private Equity Funds
  7. 7. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS SPOTLIGHT ON THE EXISTING AFDB PRIVATE EQUITY FUNDS PORTFOLIO Approved Funds (Cumulative Number) Approved Amounts (Cumulative USD million) 902 621 361 34 24 188 123 123 146 6 82005 2006 2007 2008 2009 2010
  8. 8. AFRICAN DEVELOPMENT BANK GROUPPRIVATE SECTOR OPERATIONS Sectorial Distribution of AfDB PE Portfolio
  9. 9. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSAfDB PE Portfolio Distribution by Income
  10. 10. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSAfDB PE Investments Distribution by Region
  11. 11. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSAfDB PE Investments Distribution by Sector
  12. 12. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS Growth through Private EquityInvestments in Africa” 9th June 2011 from 8.30 AM to 5.30 PM Lisbon Congress Center-Auditorium III
  13. 13. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSOverview:The side event will provide a unique platform for privateequity industry participants to showcase the African privateequity asset class. It will include portfolio company casestudies to help illustrate the positive power of private equityinvestment. The event will include panel discussions onthemes of interest to the broader African PE Industry as well asAfDB’s shareholder base and potential investors.
  14. 14. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS The Objectives of the PE EventExpand the knowledge of Highlight the continent’s huge the PE in Africa and AfDB’s potential for profitable role in developing the investments; industry;Highlight the continent’s Encourage partnerships and huge potential for reinforce efforts of attracting profitable investments; further private sector investors; Showcase case studies provided by General Partners and Entrepreneurs
  15. 15. AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONSAfDB private sector Equity Funds in diverse sectors:Infrastructure, Health, Agribusiness, FinancialServices etc.. 15
  16. 16. AFRICAN DEVELOPMENT BANK GROUPPRIVATE SECTOR OPERATIONS Active AfDB Private Sector Operations in Private Equity Funds
  17. 17. South African Infrastructure Fund (SAIF)  Fund Manager: Macquarie Group  AfDB Loan : ZAR 113 Million  Benefits: o Infrastructure development in South Africa o Regional integration o Job creation o Regional integration 17
  18. 18. Multinational: Evolution One Project  Fund Manager: Inspired Evolution Investment Management  AfDB loan: US$ 14 Million  Benefits: o - Contribution to climate change mitigation o - Infrastructure development o - Job creation o - Regional integration
  19. 19. Multinational: African Energy Infrastructure Fund (AEIF)  Fund Manager: Frontier Markets  AfDB loan: US$ 30 Million  Benefits: o Increased power supply o Reduce Power generation cost o Export of electricity to neighboring countries o Regional integration
  20. 20. Multinational: Pan-African Infrastructure Fund (PAIDF)  Fund Manager : Harith  AfDB loan: US$ 50 Million  Benefits: o Development of infrastructure : At least 16 Infrastructure projects will be financed by 2014 o Creation of Jobs
  21. 21. Multinational: AIG African Infrastructure Fund  Fund Manager:  AfDB loan: US$ 50 Million  Benefits: o Provide a significant funding source for infrastructure investment in Africa; o Stimulate foreign investment in Africa; o Create employment opportunities o Promote capital markets development in African countries o Encourage the transfer of management expertise and entrepreneurial skills.
  22. 22. Multinational: African Infrastructure Investment Fund II (AIIF II)  Fund Manager: Macquarie Group  AfDB loan: US$ 30 Million  Benefits:  Create employment,  Stimulate increased trade  Relieve government expenditure on infrastructure.
  23. 23. Multinational: Argan Infrastructure Fund (ARIF)  Fund Manager : Infra Invest  AfDB loan: EUR 12 Million  Benefits: o Catalyzing additional funds for infrastructure and associated projects. o Contribute towards increasing the access to infrastructure in the Bank’s RMCs
  24. 24. Multinational: ECP Africa Fund II (ECP II)  Fund Manager: Emerging Capital Partners  AfDB loan: US$ 50 Million  Benefits: o ECP III invests in projects that will ultimately enhance productive capacity and growth on the continent. o Support financial market development, Increase trade, o Transfer skills, o Improve corporate governance, o Create jobs, and generate fiscal revenues.
  25. 25. Multinational: Atlantic Coast Regional Fund  Fund Manager: Emerging Capital Partners  AfDB loan: US$ 15 Million  Benefits: o Helps reduce poverty, o Impact positively the targeted region governments, o Develop capital markets and o Promote regional integration
  26. 26. North Africa: Maghreb Private Equity Fund II (MPEF II)  Fund Manager: TunInvest  AfDB loan: US$ 20 Million  Benefits: o Job creation in diverse industries and sectors particularly, for low income workers in the agro-business, construction, formal and informal sectors.
  27. 27. Multinational: Atlantic Coast Regional Fund (ACRF)  Fund Manager: AFIG  AfDB loan: US$ 15 Million  Benefits: o Helps reduce poverty, o Develop capital markets and o Promote regional integration o Increase exports in the focus sectors
  28. 28. Multinational: Pan-African Investment Partners II (PAIP II)  Fund Manager: Kingdom Zephyr Asset Management  AfDB loan: US$ 50 Million  Benefits: o Enhance productivity and regional integration on the continent o Support financial market development, o Increase trade, o Transfer skills, o Improve corporate governance, create jobs, o Generate fiscal revenues
  29. 29. Multinational: AfricInvest Fund II  Fund Manager: TunInvest  AfDB loan: US$ 20 Million  Benefits: o Enhance productive capacity and growth on the continent. o Support financial market development, o Increase trade, o Transfer skills, o Improve corporate governance, o Create jobs, o Generate fiscal revenues.
  30. 30. Multinational: Aureos Africa Fund (AAF)  Fund Manager : Aureos Capital  AfDB loan: US$ 30 Million  Benefits: o job creation, o Income generation, o Capital mobilization of USD 1.3 billion by 2013; o Creation of 800 housing units o Increased cumulative exports of USD 940 million by 2018.
  31. 31. Multinational: Catalyst Fund  Fund Manager: Catalyst Principal Partners  AfDB loan: US$ 20 Million  Benefits: o Job creation, o Income generation, o Regional integration oPoverty reduction
  32. 32. Multinational: Agrivie Africa Investment Fund (AGRIVIE)  Fund Manager: AgriVie  AfDB loan: US$ 15 Million Benefits: o Jobs Creation o Support investments in 12 to 15 SME’s in the agribusiness sector; o Generate considerable amounts of tax revenues and foreign currency flows from exports.
  33. 33. Multinational: African Health Fund (AHF)  Fund Manager: Aureos Capital  AfDB loan: US$ 12 Million  Benefits: o Creating at least 1,500 jobs by 2015; o Serving 400,000 to 600,000 patients (50% of whom will be women) o Serving at least 50% of the poorest population with healthcare services; o Completing at least 30 capacity-building operations for healthcare SMEs by 2015; o Mobilizing at least USD 1 billion in credit for SMEs by 2015.
  34. 34. Multinational: African Capitalisation Fund (ACF)  Fund Manager: IFC Asset Management Company  AfDB loan: US$ 13 Million  Benefits: oStabilizing portfolio banks, maintaining and/or creating jobs in their respective countries; oStrengthening private sector development oCatalyzing private sector investments into emerging financial markets
  35. 35. Multinational: African Agriculture Fund (AAF)  Fund Manager: Phatisa Management  AfDB loan: US$ 40 Million  Benefits: o AAF will have a positive impact on strengthening food security o Jobs creation, o Reducing poverty
  36. 36. Multinational: Investment Fund for Health in Africa  Fund Manager: Africa Health Systems Management  AfDB Loan : Euro 10 Million  Benefits: o Extend health insurance coverage across the continent o Improve utilization of health services o Increase and streamline local production and distribution of quality pharmaceutical products o Job creation
  37. 37. Multinational: Grofin Africa Fund (GAF)  Fund Manager: Grofin  AfDB loan: US$ 20 Million  Benefits: o Create a sustainable wealth, o Jobs creation for the development of the prosperous PMEs o Contribute to strengthening financial markets o Increases in tax revenues and the contribution of the local PMEs to the national GNP.
  38. 38. Multinational: New Africa Mining Fund 2 (NAMF2)  Fund size: USD 200 million  AfDB equity: USD 25 million  Benefits: o Develop the mining sector in Africa o Create permanent and short term Jobs o Promote transparency through the Extractive Industries Transparency Initiative (EITI) 38
  39. 39. AFRICAN DEVELOPMENT BANK GROUPPRIVATE SECTOR OPERATIONS Contact: African Development Bank Private Sector and Microfinance Department BP 323, 1002, Tunis Belvedere, Tunis- Tunisie Tel:+216 7110 3227/ Fax:+216 71 834 17 Email: private-sector@afdb.org Website: www.afdb.org/privatesectordevelopment

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