Business
East Africa is now a major market for Private Equity
The country is expected to have opportunities in mining, banking, tourism, and oil and gas.
White Lake also identifies Rwanda as a favorite destination for deal hunters, an indication that things are looking up for East Africa.
“Rwanda may be considered a frontier market by many investors, but it’s post-genocide economic recovery has been remarkable. Many investors rank Rwanda highly when it comes to ease of doing business in Africa,” notes the report.
The forecast’s increased activity for Private Equity funds in the region is in line with the progress made in the past two years when more than 10 private equity funds were formed in the region.
These are: Batian Fund, Fusion African Access, Rift Valley SME Fund 1, and Catalyst Principal Partners.
The While Lake Group report however identifies lack of adequate infrastructure as one of the biggest hurdles facing attractiveness of Africa to Private Equity funds despite the continent’s potentially huge market for goods and services.
“Lack of infrastructure like roads, rail, electricity and adequate water supply represents a major challenge for the distribution, storage and transport of goods to the consumer. With the lack of roads in Africa, coastal countries such as Ghana, Kenya and Madagascar currently have an advantage in importing and exporting,” notes the report.
Source: The East African
