To offer fixed income and credit as an alternative asset class within the African markets.
A strong case for continuous economic growth over the medium term, with diversification away from natural resources and government
Economic Growth: Over the next 3 years, 7 out of the 10 fastest growing economies in the world will be in Africa (Sources: IMF, The Economist).
Expanding Consumer Market: By 2020, there will be 200 million Africans with discretionary spending power (GDP per capita > US$5k). (Source: McKinsey).
Resources Potential and Infrastructure Investments: Rapid urbanisation, increased resources discovery (Africa has 60% of world natural resources ), are leading to higher infrastructure investment.
New Green Revolution: Africa has 60% of the world’s arable land and competitive labour cost, yet has shown no significant improvement in agricultural yield for the past 60 years (Source: Syngenta Foundation).
Demographic dividend: Half of the continent’s 1 billion people of working age (15- 45 years old ) and there is ample room for increased productivity growth.
More Spending on Education: 20% of Government spending is invested on education with room for growth ( source Mckinsey ).
Conclusion: Stronger economic growth ahead will be supported by a deeper and larger debt market!