Financing Growth

Funding options and availability of investment

Attractive positioning for successful round

PanelJohn Foster, Africa Editor, DebtWire – The Mergermarket Group

Folabi Esan, Partner, Adlevo CapitalIrungu Nyakera, M.D., Equity Investment Bank Limited

ModeratorAlon Avnon, M.D., BizDevOS

On the stage

John Foster, Africa Editor, DebtWire – The Mergermarket GroupJohn Foster oversees the Africa Debt Capital Markets desk for Debtwire’s CEEMEA practice. Debtwire is part of the Mergermarket Group, based in London and New York. John and his team produce all the African DCM content for Debtwire, covering both loans and bonds and sovereign and corporate issues continent-wide. He reports and tracks the primary bond issues of African-domiciled companies.

Folabi Esan, Partner, Adlevo Capital www.adlevocapital.comFolabi Esan has been a partner at Adlevo Capital since it was founded in 2007. Alvedo makes equity and equity-linked investments in rapidly growing private companies in various stages of development. These companies derive their competitive advantage from the development and exploitation of technology or technology-driven processes.

Alon Avnon, M.D., BizDevOS Ltd. www.bizdevos.comAlon is the founder and Managing Director of BizDevOS Ltd. London based advisory firm, focus on the financial aspect of business development. BizDevOs offer companies and investors support with critical challenges, such as planning and executing synergetic acquisitions, strategy and execution of efficient capital raising, due diligence and others.

Irungu Nyakera, M.D., Equity Investment Bank LimitedServed as Regional Director, East and Southern Africa at Frontier Markets Fund Managers, uarantCo, and as a transactor at Citigroup in London. Was also the Managing Director at NIC Capital.

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Foreign Direct Investment (FDI)

Mixed picture for the Continent.Sub-Saharan Africa’s FDI is

growing strong

Other Investment Channels

Strong investment growth across all non-governmental sources

African Public Offerings in London“…there are more than 100 companies listed in London…”“…10 African countries listed on LSE in 2013, double 2012’s...”“… From 2008 to 2012 African companies raised $6.9Bn…”

Baker & McKinzie“… we’ll continue a strong IPO market as investor appetite to African equities just keep growing…” Goldman-Sachs

CAGR: 49%

CAGR: 10%

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Perceptions is everything…..

Experienced African investors view investment in Africa significantly more

positive than others

Perceptions tend to (eventually) converge with reality

Key Ecosystem indicators are in the same range as the BRICs

Rwanda 32South Africa 41

Ghana 67Zambia 83

Russia 92China 96Brazil 116

Ethiopia 125Kenya 129

Uganda 132India 134Mozambique 139Tanzania 145Nigeria 147

Côte d'Ivoire 167Cameroon 168

Senegal 178Angola 179

Ease of Doing Business Ranking

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Not in the right space or geography

Africa is not about minerals only and not only South-

Africa any longerSource: The Search for Returns

Investment pattern

The African private equity investment model is catching up with practices in

the developed world

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Raising money from the public…..

IPO is a limited route to raise fund or exit, but not impossible.As the economy grows and volume increases, public listing will become

accessible to more companies.

African Public Offerings in London“…there are more than 100 companies listed in London…”“…10 African countries listed on LSE in 2013, double 2012’s...”“… From 2008 to 2012 African companies raised $6.9Bn…”

Baker & McKenzie

“… we’ll continue a strong IPO market as investor appetite to African equities just keep growing…”

Goldman-Sachs

Source: RisCura, ASEA

Number

The oldest form of finance….

Although debt is available to African enterprises, it is not being used to the

same extent as in other countries.An Opportunity?

$0-25M $25-50M $50-100M >$100M

African Debt %

African Equity %

Global

Debt %

Source: RisCura, Pitchbook

Five Common Myths

There is not enough money for investment in Africa

Investors do not have the appetite for the level of risk in Africa

The project / venture is too big / small, too early / too mature, or not in the right space

Regulatory and legal framework ecosystem does not enable certain forms of finance

International investors are very picky

Yes!!! Investors are very picky…

But,Africa’s risk adjusted multipliers

are sensible

Investors deserve the credit for….

Picking the right space and the right location