Kenya hosts Africa equity meet

Optimism abounds in the private equity industry over the potential fortunes of Africa.

This was demonstrated by the interest generated by this year’s SuperReturn Africa conference held in East Africa last week.

The region was abuzz with conversations on the asset class as industry players gathered in Kenya’s capital, Nairobi, for the event.

Besides the funds that are focused on the continent, it was also attended by representatives of funds that are yet to invest and are scouting for opportunities.

The SuperReturn Africa conference provided an opportunity for players to consider ways in which the continent could exploit its famed potential.

This second edition of the annual event, first held in Cairo, Egypt last year, was preceded by a one-day forum dedicated to showcasing the opportunities presently available in West African countries.

For two days, the continent mulled over the potential and opportunities presented by the asset class. Africa has been billed as the next frontier for the global private equity industry by analysts.

Currently, within the emerging markets, Africa trails the Asian region and Latin America when it comes to private equity activity.
Separately, a closed door workshop dubbed ‘Private equity as an asset class’ was held for investors, to provide an opportunity for interaction between local and international ones.

“Local investors can find out tips and pitfalls for investing into private equity from those with many years’ experience. International investors can hear how local investors perceive and deal with risks on the ground in Africa,” organisers explained in a statement.

According to the organisers, over 250 delegates, who included 80 local and international investors attended the conference to discuss issues that affect the industry.

The ongoing integration efforts in the East African Community (EAC) came into sharp focus as participants discussed the ways in which the industry could tap into opportunities presented by regionalisation.

The EAC, which has a common market in place, is currently working towards a monetary union. Players considered to what extent the private equity scene has been enabled by these steps towards regional integration.

Another issue that the industry has been grappling with, and which featured prominently, was the need to generate local sources of capital for the private equity funds.

Currently, development finance institutions and other international investors provide the bulk of capital that is being invested by Africa-focused funds.

There have been constant calls for local institutions, such as pension funds, as well as high net-worth individuals, to begin investing in private equity funds. Delegates at the recent conference discussed current barriers and how they could be surmounted.