Mauritius As an Investment Hub For African

LAGOS (Capital Markets in Africa) – What role can Mauritius play as an investment hub for Africa, at a time where the continent continues to face financing gaps when it comes to the future development of its infrastructure? Energy projects are currently consuming around 60% of African infrastructure investment, and there continues to be significant demand for public and private investment to address the water supply, sanitation and ICT amongst others.

It has been estimated by Deloitte that Government and traditional donor financing could at best meet 50% of the requirements of infrastructure financing, and so innovative solutions combining international and domestic and public/private sources will need to be devised and implemented.

Private Equity financing is already becoming part of the solution, with the African Private Equity and Venture Capital Association noting that 86 Private Equity infrastructure deals were concluded in Africa between 2011 and 2016, with a total value of US$ 10.6bn, and it is interesting to note that 45% of PE infrastructure investment was in utilities, while only 10% was in energy.

Private Equity players are very much aware of infrastructure opportunities on the African continent, and GPs are already investing from both PE infrastructure-specific and generalist funds. A survey conducted in 2017 by the African Private Equity and Venture Capital Association revealed that African LPs actually identified infrastructure as the most attractive sector for PE investment over the next three years, while non-African LPs saw consumer goods as the most attractive, which suggests an interesting divergence of perspectives.

PE investments in infrastructure projects to date have included Amandi Energy (ARM-Harith Infrastructure Investment Ltd and other investors, 2016) and Sindila Micro-Hydro (Metier Sustainable Capital Practice, 2016) and there have also been a number of successful exits such as Bakwena Platinum Corridor Concessionaire (African Infrastructure Investment Managers, 2016) and HTN Towers (Helios Investment Partners, 2016).

An extract from the INTO AFRICA August Edition: Driving Africa Opportunities. To read full article, please download by clicking: INTO AFRICA PUBLICATION: AUGUST 2018 EDITION.

Contributor’s Profile
Graham Sheward has over 30 years of financial services experience gained initially in the UK, Jersey, Guernsey and Isle of Man. Prior to joining SGG Mauritius, Graham was Country Director, International Banking, Barclays Bank (Mauritius Limited), where he was responsible for a diverse client proposition including Global Corporates, Intermediaries and HNW Private Clients.

His previous roles include Head of the NatWest Expatriate Service in the Isle of Man, Head of Retail Savings and Investments for Zurich Financial Services, and Managing Director of Close Brothers Group Offshore Banking Division.

Graham holds the Diploma in Company Direction from the Institute of Directors and has held multiple board directorships and regulator-approved positions. He has served as a member of several industry bodies, including the Mauritius Bankers’ Association International Sub-Committee, Global Finance Mauritius and the Financial Services Promotion Committee.