investing in africa us africa business conference june 2008

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Investing in Africa US Africa Business Conference June 2008

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Page 1: Investing in Africa US Africa Business Conference June 2008

Investing in Africa

US Africa Business Conference

June 2008

Page 2: Investing in Africa US Africa Business Conference June 2008

2

1. Standard Bank Group

2. The Standard Bank Africa Investment Team

3. Why Invest in Africa?

4. Standard Africa Development Fund

5. Overseas Private Investment Corporation

6. Contacts

7. Disclaimer

Contents

Page 3: Investing in Africa US Africa Business Conference June 2008

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Standard BankA leader in Africa and the broader Emerging Markets

Standard Bank is the largest financial services group in Africa

Headquartered in Johannesburg Total assets in excess of US$120 billion Employs 40,200 people worldwide Represented in 38 countries, focused on

emerging markets and resource banking

Standard Bank recently won eight awards in November 2007 from the Banker magazine including, the ‘Emerging Markets Bank of the Year’ as well as “Bank of the Year” for seven different African countries

Asset Management Unit has over $1billion invested in Africa (ex. SA) Standard Asset Management

Strong and growing presence across the continent

Page 4: Investing in Africa US Africa Business Conference June 2008

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Standard Bank has a presence in key under-researched growth markets

Standard Bank and STANLIB trade under Stanbic name in some African Markets to avoid confusion with Standard Chartered

Asset Management from

Standard Bank

Strong and growing presence across the continent

Standard: We are Africa’s Asset Manager

Standard Asset Management

Founded in 1969, STANLIB is one of the longest established African asset managers

Presence in key under-researched growth markets

Outside of South Africa, indigenously staffed asset management companies in Botswana, Kenya, Namibia, Swaziland, Lesotho, and Uganda

Nigeria to follow with the acquisition of IBTC Bank by Standard Bank.

North and West Africa covered by specialists in South Africa

Ability to leverage off Standard Bank group presence

Page 5: Investing in Africa US Africa Business Conference June 2008

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Primary investment team biographies

Kevin Colglazier: Chief Investment Officer (based in London) Before joining SAM, Mr. Colglazier was the Head of Global Fixed Interest in London and the Head of Asian Fixed Income in Singapore for First State Investments.  Prior to this, Mr. Colglazier was the Investment Director of Fixed Income for Global Asset Management (GAM) in Singapore and London. Before GAM, he was the CIO at Chase Manhattan Private Bank in Geneva and Hong Kong. Earlier to this, Mr. Colglazier was a fund manager with Guinness Flight and started his career with Putnam Investments. Mr. Colglazier has a BA in History and Government from Georgetown University and a MPhil. in International Relations from Cambridge University.

Alia Yousuf: Head of EM Debt (based in London)

Ms. Yousuf previously managed the emerging market bond portfolios at First State before joining SAM. Prior to this, she worked as an emerging market debt portfolio manager at Fischer Francis Trees and Watts. Her previous work experience includes economic analysis for both Emerging Markets Economics Ltd and the World Bank. Ms. Yousuf holds a BSc in Econometrics and a MSc in Economics from the London School of Economics

John Mackie: Head of Africa Funds (based in Johannesburg)

Mr. Mackie has overall investment responsibility for all the STANLIB Asset Management portfolios in Africa outside South Africa. Mr. Mackie joined Standard Corporate and Merchant Bank Asset Management in 1996 as a Portfolio Manager. He also spent eleven years at Standard Merchant Bank’s Treasury Division, seven of which were in Corporate Foreign Exchange sales. Prior to this he worked as a Money Market dealer. He holds a Bachelor of Commerce (honours) from the University of Cape Town.

Page 6: Investing in Africa US Africa Business Conference June 2008

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The Standard Africa Development Fund

A dedicated unit with

the backing of a well

resourced team

A Dedicated Unit

Head of EM DebtAlia Yousuf

Head of EM DebtAlia Yousuf

Standard Africa Development FundStandard Africa Development Fund

Emerging Market DebtEmerging

Market Debt BotswanaBotswana NamibiaNamibia

Stephane Bwakira, PM

Stephane Bwakira, PM

Bangidza Dhliwayo, PM

Bangidza Dhliwayo, PM

Eino Emvula,Analyst

Eino Emvula,Analyst

Thabo Ncalo,Analyst

Thabo Ncalo,Analyst

Modise Mokone, Analyst

Modise Mokone, Analyst

Alejandro Arevalo, Analyst

Alejandro Arevalo, Analyst

Chris Perryman,

Dealer

Chris Perryman,

Dealer

MarkBodon

Senior Credit Analyst EM

MarkBodon

Senior Credit Analyst EM

KenyaKenya

Gathungu Gichuha, PM

Gathungu Gichuha, PM

Abdi Hassan,PM

Abdi Hassan,PM

Kenneth Kaniu,Analyst

Kenneth Kaniu,Analyst

CIOKevin Colglazier

CIOKevin Colglazier

Head of Africa FundsJohn Mackie

Head of Africa FundsJohn Mackie

David MakoniAnalyst

David MakoniAnalyst TBATBA TBATBA

African Debt Unit

Pan Africa (ex SA)

Pan Africa (ex SA)

Page 7: Investing in Africa US Africa Business Conference June 2008

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“[Sub-Saharan Africa] is not all hype. High commodities prices, good debt-management, … debt relief and better economic leadership have produced the strongest growth and lowest inflation in sub-Saharan Africa in over 30 years.”

Economist, December 2007

Why Invest in Africa?

"If Russia was a once-in-a-lifetime opportunity, sub-Saharan Africa is a second once-in-a-lifetime opportunity“

Stephen Jennings, Renaissance Capital, May 2007

“The continent is experiencing its highest growth since the 1970s”

The Africa Competitiveness Report, World Economic Forum, June 2007

“Africa is the only continent yet to be built. It will be here that some of the great politics of our century will play themselves out. It’s a

continent of 900 million potential producers and consumers. Many of the great rivers and resources on the planet are here. It is a continent growing economically at more that 5% pa with 23

democratic-ish countries south of the Sahara”

Bob Geldof, February 2008

Page 8: Investing in Africa US Africa Business Conference June 2008

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85% of Africa’s population now lives under stable or relatively stable regimes, which pursue free market economics

Africa’s improving environment

Source: STANLIB

Page 9: Investing in Africa US Africa Business Conference June 2008

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“Africa’s annual GDP growth has averaged about 5% annually over the past six years. This

growth has been more broad-based, with non-oil exporters growing as fast as the oil exporters.”

Source: OECD Africa Economic Outlook Report (2007)

Economic Growth Forecast to Average 6%+ in 2008

Source: RMB Africa Research, OECD

Africa’s improving environment

Page 10: Investing in Africa US Africa Business Conference June 2008

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All Africa external debt and debt service

Source: IMF World Economic Outlook April 2007

Debt service ability has increased substantially

Page 11: Investing in Africa US Africa Business Conference June 2008

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African foreign direct investment FDI Flows into Africa are Now Growing Faster than into any other Emerging Market Region

Source: Deutsche Bank Research

Page 12: Investing in Africa US Africa Business Conference June 2008

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Untapped mineral reservesDirect Investors Like China Already See the Opportunities

Platinum 87.7%

Manganese 85.8%

Chromium 73.0%

Diamonds 63.1%

Cobalt 48.6%

Gold 41.3%

Bauxite 31.5%

Copper 26.4%

Uranium 16.5%

Nickel 8.0%

Oil 8.0%

Natural Gas 7.6%

Zinc 7.2%

Coal 6.4%

Iron Ore 4.5%

Greatest Mineral Reserves

on the Planet

Source: The Africa Report

Page 13: Investing in Africa US Africa Business Conference June 2008

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Why Invest In Africa?10 SSA Countries Already Produce Oil With Others Actively Exploring…

Nigeria and Angola are major oil producing countries in sub-Saharan Africa

Oil production is expected to increase as the political and investment climate improves

Nigeria and Angola now account for almost 20% of the world’s oil production

Source: Economist Intelligence Unit

Page 14: Investing in Africa US Africa Business Conference June 2008

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U.S. oil imports from the Middle East have been declining since 2002

Whereas oil imports from Africa have increased and now account for a greater share of US oil imports than the Middle East

Africa forecast to provide 25% of US oil supplies by 2010

Oil importsUS now imports more oil from Sub-Saharan Africa than the Middle East

Page 15: Investing in Africa US Africa Business Conference June 2008

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Expand port facility (Gabon) Agro-business development (Nigeria) Infrastructure project financing (Senegal) Infrastructure project (Sierra Leone) Small mining project (Botswana) Housing development (Ghana)

Expand port facility (Gabon) Agro-business development (Nigeria) Infrastructure project financing (Senegal) Infrastructure project (Sierra Leone) Small mining project (Botswana) Housing development (Ghana)

Private financing sector focus

Forthcoming deals

Agricultural sector: Ghana, Francophone Africa, Kenya Housing sector: Ghana, Uganda, Francophone Africa Power sector: Tanzania, Kenya Infrastructure sector: All across Africa, currently looking into Kenya, Uganda, Ivory Coast,

Nigeria Waste management: Cameroon, Uganda

Agricultural sector: Ghana, Francophone Africa, Kenya Housing sector: Ghana, Uganda, Francophone Africa Power sector: Tanzania, Kenya Infrastructure sector: All across Africa, currently looking into Kenya, Uganda, Ivory Coast,

Nigeria Waste management: Cameroon, Uganda

Standard Africa Development Fund (Deal Pipeline)

Our local offices: London, South Africa, Botswana, Swaziland, Lesotho, Kenya, and Uganda Capital markets: For example Standard Bank, Citibank, Barclays/ABSA and JP Morgan Reverse enquiry: Whereby we uses our extensive region contacts to identify companies that

fulfil the desired currencies and sectors criteria determined by the top/down overlay

Our local offices: London, South Africa, Botswana, Swaziland, Lesotho, Kenya, and Uganda Capital markets: For example Standard Bank, Citibank, Barclays/ABSA and JP Morgan Reverse enquiry: Whereby we uses our extensive region contacts to identify companies that

fulfil the desired currencies and sectors criteria determined by the top/down overlay

Deal sourcing

Page 16: Investing in Africa US Africa Business Conference June 2008

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Overseas Private Investment Corporation (OPIC)

OPIC selected the Standard Bank Group to manage the African Development Fund

because of:

Our group’s strong presence in Sub Saharan Africa

Our long-standing experience in managing emerging market debt

The Fund is part of the

Africa Financial Sector

Initiative (AFSI) , announced

by the US Government in

early 2007 ahead of the G8

Summit

By combining the incentives

and ingenuity of investment

banking with the social

conscience investment ethos

of the development world,

the AFSI aims to lead to

sustainable poverty reduction

through the profit seeking

ambitions of global market

participants

Part of the US Government’s AFSI Program

OPIC is a leading US Development Finance Institution

Page 17: Investing in Africa US Africa Business Conference June 2008

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Our contacts

Standard Bank PlcCannon Bridge HouseDowgate HillLondonEC4R 2SB

Standard New York19th Floor, 320 Park AvenueNew YorkNY 10022USA

Standard Bank PlcRepresentative OfficeEmirates Towers16th FloorPO Box 504904DubaiUnited Arab Emirates

Addresses

Baldwin Berges

Head of Distribution for Europe, Middle East

Standard Asset Management, London

+44 (0)207 8153870 [email protected]

Mark Livingston

Product Manager

Standard Asset Management, New York

+1 212 4075171 [email protected]

Page 18: Investing in Africa US Africa Business Conference June 2008

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Disclaimer

Whilst every care has been taken in preparing this document, no representation, warranty or undertaking (express or implied) is given and no responsibility or liability is accepted by Standard Asset Management ("SAM") as to the accuracy or completeness of the information contained herein. SAM is an operating division of Standard Bank Plc ("SBplc"). SBplc is authorised and regulated by the Financial Services Authority ("FSA") and entered in the FSA’s register (register number 124823). SBplc or its affiliates, their directors, officers and employees may have a long or short position in currencies, investments or securities mentioned in this report or related investments, and may add to, dispose of or effect transactions in such currencies, securities or investments for their own account and may perform or seek to perform advisory or banking services in relation thereto. No liability is accepted whatsoever for any direct or consequential loss arising from the use of this document.

Furthermore, the information contained in this document is for information purposes only and should not be construed as and offer to sell, a solicitation of an offer to buy or a recommendation for any security or as providing advice of any kind.

The information has been compiled from sources we believe to be reliable, however SAM does not guarantee its accuracy or completeness. Opinions, forecasts, and estimates constitute our judgment as of the date of this report and are subject to change without notice. The investment products described are not FDIC insured and are not covered by the Financial Services Compensation Scheme in the United Kingdom. Distribution to the investing public or private customers is strictly prohibited.

All rights to the content contained herein remain the exclusive property of SAM. Copying, duplication or re-publishing of the information contained in this newsletter is prohibited without the express written consent of SAM. (Compliance Reference LCSAM0716).