Over the past decade, the investment climate in sub-Saharan Africa has evolved greatly thanks to an improving political environment and a greater focus on economic development. Strategic and financial investors have reacted by diversifying their scope of interest and dedicating greater resources to investment opportunities on the continent.
Strategic investors seek to invest directly in companies which will reinforce their core competence and extend their global market reach. By teaming up with a private equity firm like AFIG Funds, strategic investors interested in expanding in sub-Saharan Africa can benefit from the on-the-ground presence of an experienced partner with an extensive regional business network who can streamline the opportunity identification process and facilitate the transaction.
Financial investors look for opportunities to earn superior returns in a specific time frame while minimizing their risks. AFIG Funds is well placed to work alongside financial investors to target well-performing sub-Saharan Africa companies that will meet their investment requirements. AFIG Funds’ preference to structure investments that provide cash-on-cash returns should also be of interest to financial investors seeking a recurring income stream.
Due to the perception of the Africa risk, high-performing, profitable local companies have been valued at a deep discount to their global counterparts and represent a tremendous investment opportunity for strategic and financial investors alike. AFIG Funds is well positioned to be the partner of choice of such investors.