Transcript Workshop 3

Bright Africa 2015
Drivers, enablers and managers of investment
on the continent
riscura.com/BrightAfrica
Continent can be divided into 9 meaningful markets
Central Africa
East Africa
Egypt & Sudan
Francophone West Africa
Maghreb region
Nigeria
Other West Africa
South Africa
Southern Africa excl. SA
Source: RisCura
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Domestic consumption is fairly well diversified
GDP (nominal GVA) output by region (2014)
Francophone
W. Africa
Source: BMI Research, RisCura analysis
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Large reliance on extractive industries for exports
Breakdown of regional exports (2013)
Francophone
W. Africa
Source: Trade Map, RisCura analysis
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STATE OF INFRASTRUCTURE AS AN
ENABLER
Consistent income crucial for infrastructure
Sources of government funding (2014)
Francophone
W. Africa
Source: BMI Research, IMF WEO October 2014, Heritage Index of Economic Freedom, OECD - Development Aid at a Glance
2. Africa (2014 edition), RisCura analysis
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Maghreb leads the pack on paved roads
Road infrastructure (latest available information)
Source: CIA World Factbook, RisCura analysis
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Rail infrastructure in Africa lags its peers
Km of rail per km2 of land area (latest information available))
Southern
Africa
Source: CIA World Factbook, RisCura analysis
Franco
-phone
W.
Africa
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Significant energy infrastructure needed
Energy (MW) per million people (latest available information)
Southern
Africa
Source: CIA World Factbook, IMF WEO October 2014, RisCura analysis
Francophone
W.
Africa
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PENSIONS, INSURANCE AND DFIs DRIVE
GROWTH THROUGH INVESTMENT
African pension assets growing quickly
Annualised growth rates (local currency) vs. Asset as a % of GDP
Source: Regulator annual reports and websites, other industry sources, EAC review of pension sector (Callund Consulting),
Towers Watson Global Pension Study 2015, RisCura analysis
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Significant allocation to fixed income in Nigeria and E. Africa
Asset allocation of pension funds across Africa
Source: Regulator annual reports and websites, other industry sources, EAC review of pension sector (Callund Consulting),
Towers Watson Global Pension Study 2015, RisCura analysis
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Potential for insurance growth
Penetration and expected annual growth in AUM by region
Francophone
W.
Africa
Source: Swiss Re, UN Population Division, IMF, African Insurance Organisation, NKC Research, S&P Capital IQ, RisCura analysis
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Significant growth in insurance AUM expected
AUM by region in 2012 and 2018 (projected)
Francophone
W. Africa
Source: Swiss Re, UN Population Division, IMF, African Insurance Organisation, NKC Research, S&P Capital IQ, RisCura analysis
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AFRICA’S LISTED EQUITY MARKETS
Liquidity still poor, but improving
Number of companies listed vs number of companies traded
Source: ASEA (African Stock Exchange Association), RisCura analysis
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Listing allowance of Africa indices
Source: MSCI Indices; S&P Dow Jones Indices; RisCura Analysis
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AFRICA’S UNLISTED EQUITY MARKETS
South Africa losing dominant deal position
Number of private equity entry transactions by region
Source: RisCura
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Uptick in deals in Energy investment
Number of private equity entry transactions by sector
Source: RisCura
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THANK YOU
riscura.com/BrightAfrica
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