Growth through - Private Equity Investments in Africa through Private Equity Investments in Africa...
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AFRICAN DEVELOPMENT BANK GROUP PRIVATE SECTOR OPERATIONS Private Equity Investments Growth through in Africa
Transcript of Growth through - Private Equity Investments in Africa through Private Equity Investments in Africa...
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Private Equity Investments
Growth through
in Africa
Backgound
AfDB Annual Meetings: “Growth through Private Equity Investments in Africa”
AfDB Private Sector Operations in Private Equity Funds
AfDB in Private Equity
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Examples of Active AfDB Private Sector Operations in Private Equity Funds
Background
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB in Private Equity
The African Development Bank (AfDB)’s Private Equity has seen a significant growth during the last past years making the industry and important source of corporate financing 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.
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Private Equity
USD 1 billion 105 million
Direct Investments
USD 203 million
DFIs Financial
Institutions
Indirect Investments
USD 902 million
PE Funds
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB Private Sector Operations in Private Equity
Funds
6 6 814
2434
123 123 188
361
621
902
2005 2006 2007 2008 2009 2010
Approved Funds (Cumulative Number) Approved Amounts (Cumulative USD million)
SPOTLIGHT ON THE EXISTING AFDB
PRIVATE EQUITY FUNDS PORTFOLIO
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Sectorial Distribution of AfDB PE Portfolio
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB PE Portfolio Distribution by Income
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB PE Investments Distribution by Region
AfDB PE Investments Distribution by Sector
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
“
Growth through Private Equity
Investments in Africa” 9th June 2011
from 8.30 AM to 5.30 PM
Lisbon Congress Center-Auditorium III
The side event will provide a unique platform for private equity industry participants to showcase the African private equity asset class. It will include portfolio company case studies to help illustrate the positive power of private equity investment. The event will include panel discussions on themes of interest to the broader African PE Industry as well as AfDB’s shareholder base and potential investors.
Overview:
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Highlight the continent’s huge potential for profitable investments;
Encourage partnerships and
reinforce efforts of attracting further private sector investors;
Expand the knowledge of
the PE in Africa and AfDB’s role in developing the industry;
Highlight the continent’s huge potential for profitable investments;
Showcase case studies provided by General Partners and Entrepreneurs
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
The Objectives of the PE Event
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AfDB private sector Equity Funds in diverse sectors:
Infrastructure, Health, Agribusiness, Financial
Services etc..
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Active AfDB Private Sector Operations in Private Equity
Funds
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
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
South African Infrastructure Fund (SAIF)
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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
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
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
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.
Multinational: AIG African Infrastructure Fund
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.
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
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.
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
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.
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
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
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.
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.
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
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.
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.
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
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
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
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.
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)
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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: [email protected]
Website: www.afdb.org/privatesectordevelopment
AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
