Business
East Africa is now a major market for Private Equity
Kenya is among African markets considered a favored destination for private equity investments in 2013 while Tanzania and Rwanda will be favorites in East Africa, according to a forecast by White Lake Group, a global private equity consulting company.
“The larger, more established markets of South Africa, Nigeria, Kenya may be seen as the top emerging markets, while equally fast-moving but less defined Angola and Ethiopia may be seen as frontier markets,” noted White Lake in its 2012 last quarter forecast.
“Though Kenya does not benefit from the resources of many other African countries, its well-educated workforce and position as a strategic trading hub in East Africa has made its economy relatively dynamic,” said White Lake Group.
It noted that other factors making the country attractive to Private Equity deal seekers include efforts being made to make the capital Nairobi a regional technology hub with opportunities offered by a mass market with high purchasing power.
For example, the Kenya-based InReturn Capital said it will be announcing a merger with a foreign-based fund this month while Catalyst Capital Partners is also expected to announce new investments in the country in the first quarter of this year.
The Africa Finance Corporation has lined up a US$200 million investment in the country this year.
Tanzania’s fast growing economy will be a big attraction for Private Equity investments and forecast by development finance groups like the Africa Development Bank shows that Tanzania’s economy will be one of the fastest growing in Africa in the next five years.
