iAfrica

Be Smart About South Africa

Orbitt Reveals Investor Behaviour Recorded in the First Half of 2021

East and West Africa remain the regional focus for investors, but with varying transaction profiles. For example, the average transaction size in West Africa was $25m, compared to the $10m average recorded in East Africa. Although the sectors of interest recorded were similar, investors expressed more interest in Technology, Financial Services and Healthcare in East Africa than in West Africa. Opportunities in Africa continue to be of interest to investors, specifically in West and East Africa despite macroeconomic factors. Lenders continue to employ additional risk mitigating features and credit enhancements to their deal strategy, while favouring transactions supporting the exportation of goods and services from Africa to both Asia and Europe. In the commodities space, agricultural commodities continue to attract investor interest but a reduction in activity has been observed in East Africa when compared to West Africa. This can be attributed to the increased risk perception and investor sentiments towards the larger global trading companies who were previously very active in East Africa. As a result, investors on the platform have geared their focus towards the smaller locally headquartered trading companies in the region.

SOURCE: AFRICAN BUSINESS

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