AIN July Edition

Africa Investment Notes

INVESTMENT TRENDS | CAPITAL FLOWS | SECTOR INSIGHTS | ENTERPRISE | M&A

Political risk, poor economies, policy response and tipping points

INSIDE THIS ISSUE

Investment events around Africa Emerging Ideas Policy Matters Capital Investment Appraisal

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CONTACT US @PEDESTAL AFRICA LTD. Email: africainvestmentnotes@pedestalafrica.com Web: www.pedestalafrica.com Phone: 01-4700000 LinkedIn: Pedestal Africa Ltd.

Africa Investment Notes: Monthly

July 2016

Africa Investment Notes July 2016

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Political risks, poor economies, policy response and tipping points

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nvestments in Africa are at a crossroad. Although the ‘Africa rising’ narrative remains appealing, reality is beginning to dawn on a number of economies, especially those that have struggled in the tailspin of the commodity price crash. The worsening situation includes: poor public finance for the much needed infrastructural development, harsh macroeconomic conditions including new currency controls, rising internal conflict cum political risk and a general sense of uncertainty among key African economies. Popular opinion has blamed the situation on a weak cocktail of policies from the government as a response to the impacts of dwindling resources.

of the investment climate so as to take a holistic view of unfolding events.

But something is changing in Africa. The government response to commodity price shocks has been from slow to painful, and in some cases leading to significant business exits. Africa is witnessing a new wave of exits by international and regional airline operators, global banks and fund managers leaving the African investment landscape. A trend that has also become compounded by the recent decision of British voters, in a referendum on June 23rd, to leave the European Union (EU). The result of the referendum, popularly tagged Brexit, led to shocking economic realities in markets across the globe. Some analysts are tracing the instant impact of Brexit on markets to heightened political and economic uncertainties in the United Kingdom. Such uncertainties that are not alien to Africa and so crystallize the debate concerning the far-reaching economic implications of social instability, economic and political uncertainties in states across the continent.

That is, if the policy and business climate is perceived to be one of rising risks then there would be key decisions that businesses have to make.

Political pressure on African governments may cause politicians to respond spontaneously to difficult economic situations. Nigeria’s currency controls in the face of dwindling revenues is a case in point. Lower revenues from crude oil, a vastly depleting foreign reserve and a high import bill compelled the government to respond to its economic challenges promptly, albeit with unconventional means. Sooner than later, its policy response created additional problems of rising inflation, skyrocketing exchange rates, higher food prices among others. The business atmosphere became highly pressured impacting heavily on confidence.

Likewise, if decisions of governments across the continent to reflate their economies do not resonate with professional opinion and investor perception then the confidence in those markets will continue to be eroded. This is because when it comes to identifying risk, the private sector has a great deal of expertise to lend its governmental partners. Thus working together, governments and the private sector can identify risk at all levels, whether political, social or economic.

Gradually, 2016 is turning out to be a major year in terms of big business decisions by global players. Withdrawals of foreign direct investments, relocation of offices, cancellation of routes for airlines and suspension of strategic investment plans have been some of the key decisions so far witnessed. Perhaps, not as acute as the Brexit response, the response from the business community is nonetheless a statement that requires policy appraisal and immediate action. This means that politicians must make rapid economic and political choices to put the situation in check. Such decisions should necessarily aggregate professional opinion which includes an adequate assessment

Is 2016 a tipping point for investments in Africa?

This will be an important question for observers of the business policy space. And what governments must realize is that the private sector, foreign investors and other stakeholders are paying rapt attention to actions and inactions of politicians and their agencies. It is by far easier to shred government reputation than it is to shore up new investor confidence. The struggle to salvage the once fast growing economies of Africa from a predicted growth weakening will continue. However, what is left unknown is if businesses will thrive or suffer (and therefore exit) in the new economic framework that will be set up by policymakers.

Without a doubt, Africa’s investment climate is still viewed with a mix of both fascination and trepidation. The concept of doing good business in Africa remains appealing to many investors. A rapidly expanding middle class with rising disposable income and an ability to consume more is attractive.

The confusion comes from repeated policy somersaults for which Africa is still reputed. Unpredictable governance responses make the African business climate remain labelled as one of the great unknowns compared to markets elsewhere.

Africa Investment Notes July 2016

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Investment events around Africa FINANCIAL FLOWS Brexit ‘stockquakes’ and international banks pulling out of African business

When the UK voted to leave the European Union (EU) on Friday, June 23rd, bookmakers wrongly predicted the outcome, sending shockwaves through stock markets across the globe. In Africa, the two largest stock markets in South Africa and Nigeria had their fair share of the unfolding political and economic uncertainties in the UK. Nigeria’s NSE lost NGN 278 billion (about $98 million) on the first post-Brexit trading day while its South African counterpart fell by about 2.5% to the dollar.

Prior to Brexit, the already challenged African markets, with rising current account deficits from lower commodity earnings, faced a different form of exit - the pull-back of international banks from the continent.

Barclays announced plans to sell 12% stake in its African business. This means a massive claw-back of foreign finance that is bound to hurt African economies in the medium term. Countries like Nigeria, the continent’s biggest economy, received a flurry of international trade finance in the build-up to the global financial crisis of 2007-08. Since then, inflows have slowed, increasing the economic challenge for the continent.

Uber expands as it moves into fourth Sub-Saharan Africa economy

The contribution of Uber, the global taxi-hailing startup company, to ground transportation in Africa is growing gradually. The company, which operates in 400 cities around the world, has been successful in four South African cities, Nigeria’s Lagos and Nairobi in Kenya. Uber is opening to customers in Uganda’s Kampala and plans a further expansion to Ghana and Tanzania within a month, where it hopes to give its customers flexible but world-class alternatives to the regular taxi service. In many cities where Uber is available, business travelers have all but abandoned taxis.

MTN raises South Africa investment to $757 million deals

MTN Group Ltd raised its South Africa investment target by 50 percent as the continent’s biggest wireless operator by sales looks to boost its data-services offering with acquisitions and network upgrades in its home market.

Global FDI forecasted to decline in 2016 by at least 5%

As many economies across the globe brace up to the realities of persistent slowdown in global growth forecast based on weak commodity demand, there are also worries that global FDI will decline by about 5% this year. The biggest loses are seen in the financial services sector with FDI project numbers falling by as much as 29%.

SA’s 4Di Capital announces first close of $16.8m tech VC fund

The South African firm, 4Di Capital, successfully closed deal for a new technology VC fund worth $16.8 million. The new fund is led

by Exponential Ventures, the externally focused innovation unit of insurance group MMI holdings. 4Di Capital has welcomed the idea of more innovation-minded corporates in South Africa having a stake in the venture sector, a common practice in the United States.

500 Startups announces $25 million microfund for Blacks and Latinos

500 Startups, a startup funding network based in the Silicon Valley is raising a $25 million microfund to make early stage investments in Black and Latino founders. The fund hopes to give about 100 Black- and Latino-founded startups the access to capital, networks and expertise.

Africa Investment Notes July 2016

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Investment events around Africa SECTOR GROWTH Nigeria’s NNPC secures $80 billion worth of MOUs with Chinese firms

Nigeria’s minister of state for petroleum, Dr. Emmanuel Kachikwu recently took his team to China to showcase investment opportunities in the oil and gas industry. The trip yielded more than $80 billion in investment MOUs across the entire industry value chain, with some projects in partnership with the Nigeria National Petroleum Corporation, NNPC. Although MOUs are simply notes of intent as actual projects would need to be designed to benefit from the commitments, it would appear the NNPC is focused on planned reforms. Nigeria’s oil industry, has seen a persistent lack of closure for debates concerning the regulatory framework. The Petroleum Industry Bill (PIB), once celebrated as the single most important bill to reverse a trend of investment decline, remains ‘unpassed’. Yet, NNPC is forging ahead with a reform agenda that has seen some internal restructuring take place at the national oil company.

For analysts who have maintained that reforms can take place within existing regulations, the newly signed MOUs for investments in the upstream, pipelines, downstream, gas and power sectors is a welcome development.

Rising wave of job cuts in Nigeria, South Africa; floating the Naira

Africa’s biggest economies are dropping into a further freefall as job cuts are rising in many growth sectors. Nigeria, the continent’s biggest economy had once witnessed huge job losses in its banking sector in the wake of the 2008 financial crisis. This time, banks are once again offloading large numbers of staff following difficulties from slowing national economic growth, currency controls and an exchange rate that is spiraling out of control. The government, initially engrossed in shopping for deals among lenders and in bond markets, to finance its huge budget deficits has been called upon to introduce some brakes. The Nigerian Central Bank recently floated the Naira in a bid to relax currency controls while using some policy measures to discourage further bank lay-offs.

Crude oil pushes above $50 per barrel, Nigeria loses

For the first time since the price slump of late 2014, crude oil price has rallied above the $50 mark driven by major supply interruptions, sustained demand levels, and declines in US shale output. However, such gains may not be captured in Nigeria, Africa’s one-time largest crude exporter. The country is facing massive cuts to its production as a result of renewed militant activity in the oil-bearing Niger Delta. A new group of militants, known as the Niger Delta Avengers have damaged oil pipelines and installations as part of syndicated protests against disenfranchisement, environmental damage and poor development in the region.

DataProphet hopes to leverage Yellowwoods investment for international expansion

Machine learning startup DataProphet says it hopes to use its recent investment partnership with Yellowwoods Capital Holdings to expand its international offering. The partnership, which saw Yellowwoods acquire a significant portion of the company, is the latest from a private equity company which has a pretty strong record in the South African business space. Previous investments include Hollard Insurance, Clientele Limited and Nando’s, amongst others.

Africa Investment Notes July 2016

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Emerging Ideas How businesses can profitably build a sustainable future for the next generation

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frica is a wealthy continent, which offers many opportunities for profitable investment in a range of sectors. But investments in Africa have failed to significantly improve life for the majority of Africans. For some time, focus has been on responsible inv e s t ment, underpinned by principles of transparency and accounta b i l i t y, so that the continent can achieve the transformational growth it needs. As global leaders continue to debate options for sustainable investment in Africa, the most appealing narrative remain impact investing, the type of investment that prioritizes longterm positive spillovers ahead of short-term bottom line gains.

Long-term social and economic impact on the local economy is the new popular yardstick for foreign companies and entrepreneurs. This does not mean that companies are expected to operate as charities in Africa but that they should bring something useful and lasting, driven by local innovation, to the table.

To achieve the greatest impact, investments (and their profits) must be channeled towards areas where they generate the most jobs, thus allowing millions of citizens achieve their potentials.

From only a couple of years ago, a fast-growing startup based in Kenya, M-KOPA, held the torch as an innovative business model. M-KOPA had a vision to bring solar panel lighting and electricity to the African continent despite not being a manufacturer itself. Its appeal was to provide consumer financing for solar panels by bringing together a convergence of technology, market timing, and business strategy that leads to greater social good.

in three African countries pay for solar electricity (instead of kerosene) in small daily installments through their cell phones.

The company is transforming the way digital financial services can create one thriving formal economy that includes everyone. It has also launched its first solar-powered digital flat screen TV – available on several different M-PESA payment plans. The propelling motive is to help millions of off-grid Kenyans achieve their dream of TV ownership.

The implications of Kenya alone switching from kerosene to solar electricity, not only provides superior lighting and energy, it would also save the average Kenyan household more than $105 USD per year, eliminate 2.3 million tons of carbon dioxide from the atmosphere (equivalent to about 500,000 mid-sized cars), and save millions of children and families from exposure to toxic fumes and poisoning from kerosene.

The company’s innovation signals a fundamental change for creating the genesis of a new economy based on clean energy that promises to include groups who have been previously marginalised. M-KOPA is on track to connect a million homes to its solar systems by the end of 2017. And it is making these affordable, thanks to its pay-asyou-go plans offered in Kenya through M-PESA. Adding a TV service is a customer’s delight.

The success story of M-KOPA has a lot to do with the timing of its emergence alongside convergence with a prepared environment. In 2007, Kenya adopted a mobile phone payments system called M-Pesa. This system grew rapidly and paved the way for M-KOPA, a company designed from the ground up to do mobile phone payment transfers for solar financing. Without M-Pesa, M-KOPA could never exist. So, the timing and the environment was important to transform one of Africa’s potential into a successful business.

Transforming people’s lives is one of the most important criteria that a business can pursue as it enters Africa’s emerging market territory. By identifying a really massive pain point for citizens and offering them something that’s phenomenally better, organisations can build strong commercial businesses while also making lives better.

In some of the cases, as in the M-KOPA experience, it really doesn’t matter that lack of adequate infrastructural is one of the major constraints. Sometimes, it’s good to have an optimistic view of technology trends as a leapfrogging advantage.

Today, M-KOPA has been able to expand its portfolio allowing more than 300,000 customers

Africa Investment Notes July 2016

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Emerging Ideas Economic growth driven by continental philanthropists

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new breed of philanthropists with track record of industrial success is emerging across the African landscape. As countries journey the tough path towards economic transformation, they sometimes do so through signposted industrial champions. These industrialists who became successful billionaires by making the best use of available resources to create wealth often become altruists. As major drivers of their economies, they seek to give back in a way that spurs these economies along a meaningful growth path.

tinent’s billionaires describes the story of transforming Africa’s vast resources into wealth, and increasingly sharing the fruits of that labor with their communities. As these industrialists expand their reach through philanthropy, it is necessary to reflect on the practice in order to support best efforts to create wealth and not just alleviate poverty but to drive economic growth by sustaining livelihoods.

Africa presents very bright prospects. The potential for successful philanthropy is rife as there are many young people getting better education and entering the labour market. The amount of wealth created in Africa is evidence of an abundance of human and financial resources required to improve the lives of more than 1 billion citizens.

Current market capitalization is above $1 trillion and Africa’s 50 richest people are worth a combined $100 billion, equal to about one-fifth of Nigeria’s GDP and 30 percent of South Africa’s.

The African population is youthful with people aged between 15 and 29 constituting about half of the population of most countries, a trend that is expected to continue for the next three to five decades.

The African Philanthropy Forum (APF), led by Ndidi Nwuneli, a passionate social entrepreneur is one network that is leading the way. APF establishes, builds and continuously expands a learning community of African strategic philanthropists and social investors. The forum has got some of Africa’s biggest industrialists sharing practice experience and debating the importance of commitments to inclusive and sustainable development. People like Aliko Dangote, Africa’s richest man and president of the Dangote Foundation; Elizabeth Tanya Masiyiwa of Higherlife Foundation; Frannie Leautier of the Mkoba Private Equity Fund in Tanzania and Hakeem Belo-Osagie, one of Nigeria’s pioneering philanthropists. They are engaged in varied activities – be it on an individual or a collaborative level – so that they can have a transformative effect on the lives they are touching.

Also, African philanthropy is rooted in strong traditions of self-help, self-support, and volunteer institutions. Philanthropy is central to African culture where informal and formal giving is part of belonging to community and family life. In such environment, the rise of the con-

Dangote’s Foundation, which recently secured a strategic partnership with the Bill and Melinda Gates Foundation for a polio eradication project, is involved in health and nutrition, education, empowerment and disaster relief. Others like the Higherlife Foundation are offer-

ing scholarships to thousands of women and youth to achieve their highest potential. Focusing on nutrition is critical for Africa’s youth as these industrialists doing business in Africa ought to ensure that malnutrition does not erode their investment by limiting the availability of qualified human resources. Stunted growth blunts intellect, which restrains productivity and limits progress. By focusing on nutrition and education, philanthropists have the power to lift a generation. Their investments are not only changing the economic fabric of Africa; they are allowing those who do not benefit directly from working in factories and buying products to gradually take a role in Africa’s transformation.

A strategic philanthropy model like this is what Africa needs to support sustainable development. It may be difficult to ape standard philanthropic models of contributing as much as 95 percent of billionaire funds in maintaining endowments like those set by Americans Andrew Carnegie and John D. Rockefeller. Collaborative philanthropy would also be more beneficial than individual efforts even if people like Dangote increased their personal contributions.

And like their American counterparts, contributions from African partnerships, networks and individuals can lead to structural transformation of their countries through the social industrialization process.

The potential of philanthropy in Africa demonstrates that the way an industrialist gives away his money will be just as important as what he gives it to.

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Africa Investment Notes July 2016

Policy Matters Promoting a domestic growth agenda to manage economic shocks Growth in Asia and elsewhere has shown that industrialization is crucial to job creation. In the same way, any meaningful policy response to the recent commodity price shocks and economic growth slowdowns must consider the provision of jobs, support to local industry and SMEs empowerment as pivotal to climbing out of the economic quagmire.

There are very few if any alternatives to economic self-determination and the responsibility of domestic markets for the pace at which a country’s economic fortune is transformed. This means that the choice to develop an economy must be driven by locals without external compulsion. A deliberate effort is required to channel available human and material resources into productive centres of the economy in order to maximize potentials. Usually, any enduring economic transformation would explore the strengths and competitive advantages of the local economy supported by the right mix of policies to kickstart growth. If the local economy is greenfield or has very few competitive advantages then it is the responsibility of informed policymaking and strategic planning to identify the skill sets and intangible assets among the local population that can be developed in the medium to long term. Absence of concerted efforts to develop an economy mostly results in false-starts, time wasting and sometimes chaos.

In the present circumstance across African economies, it is not unlikely to find resemblance of false starts and incoherence. The historical focus on external support, including aid, for developing local economies have caused many states to become dependent on external resources along with their dictates and conditions. For instance, many resource-dependent economies of Africa are so set up because of a lack of sustained domestic growth agenda. Hence, consequences of over-exposure to international price fluctuations become apparent. This is one of the major reasons for the far-reaching impacts introduced by the prevailing slide in commodity demand and lower prices.

African economies seeking emerge from the unfortunate situation need to complement their economic restructuring efforts with a dedicated policy agenda to sustain and stabilize domestic growth.

The multiplier effects of industrialisation that comes from providing support to the local small and medium scale industry, cannot be underestimated. SMEs play a key role in transition and developing countries, accounting for more than 90% of all firms outside the agricultural sector and constituting a major source of employment. Evidence from across Asia and other emerging economies signposts the possibilities of a robust SME development strategy. An agenda that is socially sustainable and less transactional, as is the case with resource rents or loose foreign investments.

It must be centred on job creation and securing improvements to the social and economic living standards of citizens. Addressing constraints like poor infrastructure and lack of access to finance, should also be top priority.

African economies can manage the current shocks to their once rapidly growing economies but they must do so by looking inwards rather than waiting for additional foreign investments.

Africa Investment Notes July 2016

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Policy Matters Reassessing political risk in Africa

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or international investors seeking to break ground in any of Africa’s fast growing economies so as to diversify their investments and make a healthy return, their main caveat remains risk. Often political risk is the primary concern in what, for many, are still unfamiliar markets.

Traditionally political risk firms have prided themselves on their specialist knowledge of countries and regions. However, while there has been recognition that more data-driven approaches need to be adopted, existing methodologies have struggled to keep on top of both the challenges and opportunities presented by shifts in the technological landscape. Technology is driving a massive proliferation of data. Data that is not only changing the ways in which political risk develops, but also the ways in which it can be understood.

In the past, political risk has been concerned with top-down country level assessments. While a necessary prerequisite to inform any accurate position on risk, they often lean heavily on static data and assumptions, and suffer from their inability to capture dynamics at a social and local level.

Recent episodes of dissonance between narratives of the political elite and popular opinion like that of Brexit have been enlightening. They have dramatically brought to the fore the realization that an increasingly educated, and technical savvy young demographic has the capacity not only to engage with, but also drastically disrupt the political elite. The predictive failures of political risk experts have shown their current approaches to be inadequate. Their top-down focus means social dynamics tend to be understated, leading to blind spots– specifically, a failure to predict political shifts born through mass interaction and accelerated through virtual networks.

Populations, once mobilized, can destabilize a government without arms or money. In the past, analysts were outflanked by events such as the Arab Spring because they were looking in the wrong place and operating at too slow a speed.

Periodic reports, emphasizing political change characteristics, ignored the explosive nexus of social technologies, youthful populations and political disquiet. Risk, therefore, has migrated into the virtual social space; political risk, as it stands, too often remains concerned with political devel-

opments. Increasing data on both the causes and characteristics of political risk now provides the opportunity for more robust analytical approaches. While prediction can be a chimera, that is at best elusive, and at worst dangerous, the ability to collect more data points than ever before should be understood as providing new opportunities to assess, model and forecast risks.

If Political Risk analysis is to start delivering value and consistency, it needs to develop real time tools that can monitor, map, and ultimately manage data flows on both the causes and development of events as they occur. Technology-driven approaches can now provide risk managers with hyper- local, real time risk assessments instead of relying on qualitative country risk reports which become out-of-date the moment they are written.

As the business world has woken up to the complexities, as well as potential of previously overlooked markets- Africa included- it must now also recognise the role technology has to play in helping them harness their velocity.

Many times you need that outside insight on investment trends across Africa...

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Africa Investment Notes July 2016

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Capital Investment Appraisal Implications of China’s new investment law

hina’s Ministry of Commerce has announced a new investment agenda expected to further ease foreign investors’ access to service and high-end manufacturing sectors. Specifically, finance, education, culture and logistics industries will be opened to wider foreign capital, and restrictions on high-end manufacturing will be lifted. The proposed foreign investment law (FIL) is necessitated by the rapidly changing profile of China’s FDI. Lately, Chinese foreign investors have been shifting their focus from traditional manufacturing to high-tech manufacturing and service sectors, which was described as a “structural improvement” by Gao Hucheng, the Chinese Minister of Commerce.

The proposed investment law is evidence that the Chinese Government is both directing and following foreign investment trends. The move away from standard manufacturing towards the services sector is part of the country’s current Five-Year Plan. While foreign investors are also innovating, R&D investment dollars globally are going into new technologies. China is expecting to learn, purchase and later innovate as it actively seeks FDI in additional sectors, perhaps, good news for international businesses in the services industry. The new law is also

completely in line with current FDI trends into China – FDI was up 4.7 percent in 2015 over the previous year, with service and high-end manufacturing sectors attracting over 70 percent of this total.

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The proposed investment law is evidence that the Chinese Government is both directing and following foreign investment trends.

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Aside the investment trends and policy agenda, a new investment law for China is also born out of time necessity. All three of the existing foreign investment laws were enacted decades ago, but Chinese law and regulation has been developing rapidly in recent years, particularly the company law. Indeed, problems occurring through conflicts between the existing foreign investment laws and changing rules are becoming increasingly common. For example, the new

amended company law in 2014 replaced the ‘paid-up’ rules of registered capital with subscription rules. This has simplified the incorporation procedure and made the whole process quicker.

However, foreign investments made before the 2014 company law was enacted are not entitled to such benefits.

A new FIL became important in recognition that foreign investment typically needs much more time to be approved by different authorities before it can enter the Chinese market. In its drive to become ever more attractive to foreign investment, China is keen to remove such time-consuming procedures.

Another significant reason behind China’s new FIL is that on the one hand Chinese businesses need finance in overseas markets, but the old rules from the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other supervisory bodies placed a great burden on the shoulders of Chinese enterprises in the manner in which they listed abroad or even made the listing impossible; and on the other hand foreign businesses want to make money in China, including from time to time a few restricted or prohibited industries. To get around this, some arrangements have been made that allow both Chinese and foreign businesses

Africa Investment Notes July 2016

11 to meet these needs, such as the variable interest entity (VIE) arrangement, which enables businesses to operate without having to self-regulate, and the Chinese authorities to supervise such trends efficiently, providing a more stable market for both domestic and foreign investors.

The FIL brings with it a comprehensive reconstruction of the Chinese foreign investment legal system. The US, EU and Japan are involved in trade initiatives such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. Therefore, a new foreign investment law puts China in pole position to rise up to these global challenges.

With regard to the changes under FIL, the first is that the authority will move its focus from supervising the organisational structures and business activities of foreign companies investing in China to post-investment supervision, which mainly concerns reporting obligations and national security.

Such major changes have far-reaching onward effects for the way Chinese companies would also do business in other parts of the world particularly in Africa. Prevailing stereotypes of a new ‘imperial power’ coming to exploit Africa for its resources can be dispelled with improvements in regulation compliance.

For instance, complying with international regulations including environmental laws may help.

Among African leaders, there is a growing awareness of the importance of good environmental practices and a concern that global warming will have especially negative implications for the continent. Changing the disengaged approach to the environmental practices of Chinese companies operating overseas will thus be beneficial to Africa.

Endnotes: 1. Cover page infographic created with data from the CIA World Fact book, Investopedia, Funds for Peace and the Global Economy.com; 2. Page 3 (Trends): AIN selected African investment events curated from several news sources.

3. Page 5 (Emerging ideas): AIN Opinion-editorial with extracts from OrganizationalPhysics.com title: “Africa rising: an amazing story of sustainable business doing social good” by Lex Sisney (November 3, 2013); 4. Page 6 (Emerging ideas): AIN Opinion-editorial with extracts from WorldPolicy blog title: “African Philanthropists and economic progress” by Carl Manlan (May 31, 2016); 5. Page 7 (Policy Matters): AIN Opinion-editorial; 6. Page 8 (Policy Matters): Curated from thisisAfrica.com title: “Reassessing political risk in Africa” by Joshua Wallace (November 11, 2013); 7. Page 10 (Capital Investment Appraisal): AIN editorial with press release extracts from China’s Ministry of Commerce (MOFCOM).

Disclaimer: This newsletter is a mix of curated and original information service of Pedestal Africa Ltd. As much as possible we have identified sources of content used in the Endnotes and any omissions, inaccuracies or incompleteness are not deliberate. The research has not been prepared in accordance with the full legal requirements designed to promote independence of research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Pedestal Africa Ltd. may not be held liable for any infringements on intellectual property and copyright laws or for any investment loss arising from the use of this service.

ABOUT AFRICA INVESTMENT NOTES Africa Investment Notes is a monthly investment digest for people, governments and businesses focused on the African continent. Its purpose is to convey strategic investment data, information and insights to both foreign and local investors, entrepreneurs, corporate entities and government actors within the African business space so as to support best practice, capital growth and investment throughout the continent. It is a service of Pedestal Africa Limited.

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