With focus shifting away from developed markets, Africa’s emerging markets brim with opportunities and potentials capable of sustaining continous economic growth and high yield for investors. Public sector investments on the continent heightened lately, as international bodies such as the World Bank and IMF continued to pour out funds for infrastructure and economic development while private sector investment remains largely driven by financial institutions, with banks, private equity firms and venture capital investors embracing the promise Africa offers for Return On Investment (ROI).

Public Sector

– Discussions by the US Senate Subcommittee on Africa on President Barack Obama’s proposed $7 billion Power Africa initiative started yesterday. The initiative is aimed at doubling the number of people that have access to power in sub-Saharan Africa and developing the continent’s energy infrastructure.  The outcome of the debate will determine whether the committee will proceed with the investment proposal. However, Tony Elumelu has committed $2.5 billion to the initiative and is regarded as the largest private investor

– Global consultancy, AT Kearney in its African Retail Development Index (ARDI) has identified Rwanda as the fastest place for multinational retailers to grow their businesses, with Nigeria coming second because of the peculiar nature of its markets due to unavailability of land and import regulations and restrictions while Africa’s largest economy, South Africa, ranked seventh as a result of the developed nature of its retail market. Other countries identified for retail expansion are Namibia, Tanzania, Gabon, Ghana, Botswana, Mozambique and Ethiopia

– Nigeria will receive an investment of $1.5 billion from International Financial Corporation for the development of critical sectors of its economy every year. This investment will further boost growth figures and ensure sustainability of the economy, which has experienced exceptional growth in the past few years. Recently, the International Monetary Fund (IMF) forecast 7.3 percent GDP growth for 2014.

– One of Nigeria’s top sources of Foreign Direct Investment (FDI), China invested $1.79 billion in the West African country last year. The Asian country has maintained its trade with Nigeria, with bilateral trade volume between both countries rising to $13 billion in 2012 from $2 billion in 2002, but according to the United Nations Conference on Trade and Development (UNCTAD), in its Global Investment Trends Monitor of 2013, Nigeria’s FDI declined by about 20 percent to $5.5 billion, largely due to asset sales by foreign oil companies such as Royal Dutch Shell and Chevron.

– In line with encouraging Ethiopia to ease its protectionist economic policies, Kenya has decided to allow Ethiopian companies trade on the Nairobi Securities Exchange (NSE) since non-availability of a stock market in Ethiopia has shut out foreign investments. The decision will be beneficial to both countries, as it will encourage foreign investments opportunities in Ethiopia and make the Nairobi bourse bigger.

– The Competition Authority of Kenya (CAK) has announced that it will begin to charge filing fees for merger and acquisitions processes from July. Transactions with earnings between Sh1 billion ($11.5 million) and Sh50 billion ($576.7 million) attracts a Sh1 million ($11, 540) fee while mergers above Sh1 billion will attract a Sh2 million ($23, 081) fee. According to CAK, the fee is aimed at recovering filing, advertising, analysis and review expenses incurred during the approval of merger and acquisition deals.

Private Sector

– First City Monument Bank (FCMB) Capital Markets Limited, a subsidiary of Nigeria’s FCMB Group Plc says it is investing $65 million in the construction of “Heritage Place”, Nigeria’s first green building, as it looks to bridge the gap of suitable office space in Lagos, Nigeria’s commercial capital. By providing a structured debt of $65 million for the project, FCMB capital will act as the sole financial adviser and arranger for the debt-financed eco-friendly green building situated minutes away from Victoria Island—the Central Business District in Lagos. The project is also sponsored by First Concept and Properties Limited, a Nigerian special purpose vehicle (SPV) led by Actis, a leading private equity investor in sub-Saharan Africa

–  Investment management firm, Kagiso Asset Management has defied South Africa’s low economic growth dynamics by investing in Standard Bank and FirstRand. Kagiso acquired 8 percent and 7.9 percent stakes respectively in both South African banks.  According to Kagiso, it acquired Standard Bank for its strength in Africa and FirstRand for its operational momentum.

– Jubilee, a Kenya-based investment holding firm, is poised to buy more than a half-a-dozen new firms in 12 countries in East, Central and West Africa in the present financial year. This shows that the company, in its bigger spreading-out strategy, plans to grow by acquisitions to improve its earnings in the future. According to Jubilee, it is attracted to firms with turnovers between Sh1 billion and Sh2 billion and those exposed several markets with wide-ranging financial track record.

– UAE-based hospitality firm, Caramel Group, wants to set up shops in Nairobi, Kenya before the end of this year. Caramel is poised to open up a new Caramel Restaurant & Lounge in the east-African city towards the middle of this year

– JSE-listed explosives and chemicals firm, AECI, says it has received R1 billion ($91.3m) in cash for the sale of its Modderfontein property assets to Chinese real estate developer, Shanghai Zendai. The massive property, on which it often experimented with its commercial explosives, has become an extra burden to the company because advancement in explosives expertise means the company now utilises smaller pieces of land for experiments.