African Development Bank Presentation on financing growth through Private Equity in Africa

1. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Growth through
Private Equity Investments in Africa

2. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB in Private Equity
Backgound
AfDB Private Sector Operations in Private
Equity Funds
AfDB Annual Meetings: “Growth through
Private Equity Investments in Africa”
Examples of Active AfDB Private Sector
Operations in Private Equity Funds

3. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Background

4. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB in Private Equity
The African Development Bank (AfDB)’s Private Equity has seen a significant growth
during the last past years making the industry and important source of corporate
financing and thereby an important driver in economic prosperity.
 Private Equity is a key pillar for the development of the African private
sector;
 AfDB has invested more than USD 1 billion in Private Equity with more than
60% being indirectly through Private Equity Funds;
 AfDB’s Investments in PE Funds has helped develop domestic and foreign
investors interest in African Private Equity and strengthen the profile of the
industry on the continent.

5. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Private Equity
USD 1 billion 105
million
Indirect
Direct Investments
Investments
USD 203 million
USD 902 million
Financial
DFIs Institutions
PE Funds

6. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB Private Sector
Operations in Private Equity
Funds

7. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
SPOTLIGHT ON THE EXISTING AFDB
PRIVATE EQUITY FUNDS PORTFOLIO
Approved Funds (Cumulative Number) Approved Amounts (Cumulative USD million)
902
621
361 34
24
188
123 123 14
6 6 8
2005 2006 2007 2008 2009 2010

8. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Sectorial Distribution of AfDB PE
Portfolio

9. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB PE Portfolio Distribution by Income

10. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB PE Investments Distribution by
Region

11. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB PE Investments Distribution by Sector

12. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Growth through Private Equity
Investments in Africa” 9th June
2011
from 8.30 AM to 5.30 PM
Lisbon Congress Center-Auditorium III

13. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Overview:
The side event will provide a unique platform for private
equity industry participants to showcase the African private
equity asset class. It will include portfolio company case
studies to help illustrate the positive power of private equity
investment. The event will include panel discussions on
themes of interest to the broader African PE Industry as well as
AfDB’s shareholder base and potential investors.

14. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
The Objectives of the PE Event
Expand the knowledge of Highlight the continent’s huge
the PE in Africa and AfDB’s potential for profitable
role in developing the investments;
industry;
Highlight the continent’s Encourage partnerships and
huge potential for reinforce efforts of attracting
profitable investments; further private sector investors;
Showcase case studies provided by
General Partners and Entrepreneurs

15. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
AfDB private sector Equity Funds in diverse sectors:
Infrastructure, Health, Agribusiness, Financial
Services etc..
15

16. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Active AfDB Private Sector
Operations in Private Equity
Funds

17. South African Infrastructure Fund (SAIF)
 Fund Manager: Macquarie Group
 AfDB Loan : ZAR 113 Million
 Benefits:
o Infrastructure development in South
Africa
o Regional integration
o Job creation
o Regional integration
17

18. Multinational: Evolution One Project
 Fund Manager: Inspired Evolution
Investment Management
 AfDB loan: US$ 14 Million
 Benefits:
o - Contribution to climate change
mitigation
o - Infrastructure development
o - Job creation
o - Regional integration

19. Multinational: African Energy Infrastructure
Fund (AEIF)
 Fund Manager: Frontier Markets
 AfDB loan: US$ 30 Million
 Benefits:
o Increased power supply
o Reduce Power generation cost
o Export of electricity to neighboring
countries
o Regional integration

20. Multinational: Pan-African Infrastructure Fund
(PAIDF)
 Fund Manager : Harith
 AfDB loan: US$ 50 Million
 Benefits:
o Development of infrastructure : At least
16 Infrastructure projects will be financed
by 2014
o Creation of Jobs

21. Multinational: AIG African Infrastructure
Fund
 Fund Manager:
 AfDB loan: US$ 50 Million
 Benefits:
o Provide a significant funding source for
infrastructure investment in Africa;
o Stimulate foreign investment in Africa;
o Create employment opportunities
o Promote capital markets development in
African countries
o Encourage the transfer of management
expertise and entrepreneurial skills.

22. Multinational: African Infrastructure
Investment Fund II (AIIF II)
 Fund Manager: Macquarie Group
 AfDB loan: US$ 30 Million
 Benefits:
 Create employment,
 Stimulate increased trade
 Relieve government expenditure
on infrastructure.

23. Multinational: Argan Infrastructure Fund
(ARIF)
 Fund Manager : Infra Invest
 AfDB loan: EUR 12 Million
 Benefits:
o Catalyzing additional funds for
infrastructure and associated
projects.
o Contribute towards increasing the
access to infrastructure in the
Bank’s RMCs

24. Multinational: ECP Africa Fund II (ECP II)
 Fund Manager: Emerging Capital
Partners
 AfDB loan: US$ 50 Million
 Benefits:
o ECP III invests in projects that will
ultimately enhance productive capacity
and growth on the continent.
o Support financial market development,
Increase trade,
o Transfer skills,
o Improve corporate governance,
o Create jobs, and generate fiscal
revenues.

25. Multinational: Atlantic Coast Regional Fund
 Fund Manager: Emerging Capital
Partners
 AfDB loan: US$ 15 Million
 Benefits:
o Helps reduce poverty,
o Impact positively the targeted region
governments,
o Develop capital markets and
o Promote regional integration

26. North Africa: Maghreb Private Equity Fund II
(MPEF II)
 Fund Manager: TunInvest
 AfDB loan: US$ 20 Million
 Benefits:
o Job creation in diverse industries and
sectors particularly, for low income
workers in the agro-business,
construction, formal and informal
sectors.

27. Multinational: Atlantic Coast Regional Fund
(ACRF)
 Fund Manager: AFIG
 AfDB loan: US$ 15 Million
 Benefits:
o Helps reduce poverty,
o Develop capital markets and
o Promote regional integration
o Increase exports in the focus
sectors

28. Multinational: Pan-African Investment Partners II
(PAIP II)
 Fund Manager: Kingdom Zephyr Asset
Management
 AfDB loan: US$ 50 Million
 Benefits:
o Enhance productivity and regional
integration on the continent
o Support financial market development,
o Increase trade,
o Transfer skills,
o Improve corporate governance, create
jobs,
o Generate fiscal revenues

29. Multinational: AfricInvest Fund II
 Fund Manager: TunInvest
 AfDB loan: US$ 20 Million
 Benefits:
o Enhance productive capacity and
growth on the continent.
o Support financial market
development,
o Increase trade,
o Transfer skills,
o Improve corporate governance,
o Create jobs,
o Generate fiscal revenues.

30. Multinational: Aureos Africa Fund (AAF)
 Fund Manager : Aureos Capital
 AfDB loan: US$ 30 Million
 Benefits:
o job creation,
o Income generation,
o Capital mobilization of USD 1.3 billion by
2013;
o Creation of 800 housing units
o Increased cumulative exports of USD 940
million by 2018.

31. Multinational: Catalyst Fund
 Fund Manager: Catalyst Principal
Partners
 AfDB loan: US$ 20 Million
 Benefits:
o Job creation,
o Income generation,
o Regional integration
oPoverty reduction

32. Multinational: Agrivie Africa Investment Fund
(AGRIVIE)
 Fund Manager: AgriVie
 AfDB loan: US$ 15 Million
Benefits:
o Jobs Creation
o Support investments in 12 to 15
SME’s in the agribusiness sector;
o Generate considerable amounts of
tax revenues and foreign currency
flows from exports.

33. Multinational: African Health Fund
(AHF)
 Fund Manager: Aureos Capital
 AfDB loan: US$ 12 Million
 Benefits:
o Creating at least 1,500 jobs by 2015;
o Serving 400,000 to 600,000 patients (50%
of whom will be women)
o Serving at least 50% of the poorest
population with healthcare services;
o Completing at least 30 capacity-building
operations for healthcare SMEs by 2015;
o Mobilizing at least USD 1 billion in credit
for SMEs by 2015.

34. Multinational: African Capitalisation Fund
(ACF)
 Fund Manager: IFC Asset Management
Company
 AfDB loan: US$ 13 Million
 Benefits:
oStabilizing portfolio banks, maintaining
and/or creating jobs in their respective
countries;
oStrengthening private sector
development
oCatalyzing private sector investments
into emerging financial markets

35. Multinational: African Agriculture Fund
(AAF)
 Fund Manager: Phatisa Management
 AfDB loan: US$ 40 Million
 Benefits:
o AAF will have a positive impact on
strengthening food security
o Jobs creation,
o Reducing poverty

36. Multinational: Investment Fund for Health
in Africa
 Fund Manager: Africa Health Systems
Management
 AfDB Loan : Euro 10 Million
 Benefits:
o Extend health insurance coverage
across the continent
o Improve utilization of health services
o Increase and streamline local
production and distribution of quality
pharmaceutical products
o Job creation

37. Multinational: Grofin Africa Fund (GAF)
 Fund Manager: Grofin
 AfDB loan: US$ 20 Million
 Benefits:
o Create a sustainable wealth,
o Jobs creation for the development of
the prosperous PMEs
o Contribute to strengthening financial
markets
o Increases in tax revenues and the
contribution of the local PMEs to the
national GNP.

38. Multinational: New Africa Mining Fund 2 (NAMF2)
 Fund size: USD 200 million
 AfDB equity: USD 25 million
 Benefits:
o Develop the mining sector in Africa
o Create permanent and short term
Jobs
o Promote transparency through the
Extractive Industries Transparency
Initiative (EITI)
38

39. AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR OPERATIONS
Contact:
African Development Bank
Private Sector and Microfinance Department
BP 323, 1002, Tunis Belvedere, Tunis- Tunisie
Tel:+216 7110 3227/ Fax:+216 71 834 17
Email: private-sector@afdb.org
Website: www.afdb.org/privatesectordevelopment