The most important fact for any investment in any country within the African space is that they have someone on the ground 352 days a year monitoring and mentoring investment companies. At Wentworth International we have made two recent investments, the first being a natural resources company in Sierra Leone and the second in a UK registered company which has a 100 percent focus on Africa, with operations in both the east and west of the continent. We aspire to mobilise funds from international and African investors for deployment in the fast growing economies of Africa with an estimated GDP of $2trn. Investors realise that Africa is underpenetrated with untapped potential and provides interesting opportunities for investment growth returns for any investor willing to take the time to understand and pursue opportunities within this continent. To unlock this potential, FDI must be attracted to augment the low local investment and thus far, the private equity model has been used to satisfy these needs for capital.
Opportunity knocks for PE
We all hear about the BRIC countries but the smart investors are already moving on. These are the people who always drink ‘up river,’ the investment community who get in earlier than anyone else and those who make the greatest returns. We are seeing a whole range of new businesses to develop, focused on Sub-Sahara and North Africa. Those in the know are seeing exciting opportunities with Wentworth International. It is this new perspective that makes our business of so much interest. So the world’s leading investors are turning to Africa, the only major area of the world left to develop. Africa presents very strong fundamentals that underpin its growth prospects over the coming decades and by all standards is the prime investment area especially for those who would like to tap into its vast resources. Land as a resource is easily available for serious investors either through private purchase or through allocation by governments, some of whom are ready to attract potential investors by offering free or subsidised land in addition to giving tax breaks and holidays especially for investors whose proposals indicate they can generate employment and raise income for the country. Apart from land, Africa is emerging with a strong base of well trained human capital not only in technical areas but also in management and supervisory tasks and jobs. Most African countries have adequate skilled and semi-skilled human power at their disposal and the majority of these are yearning for employment. The continent has a population of 800m people (half of whom are under the age of 16) who have comparatively little infrastructure or telecommunications access. On the back of this, it is undergoing unprecedented economic growth with the World Bank forecasting a real GDP growth rate of 5.1 percent for Sub-Saharan Africa in 2011, versus 1.3 percent for the eurozone. This combination is leading to increased urbanisation giving rise to a growing aspirational middle class with improved levels of disposable income that are driving the demand for products and innovations. As a result, we can record a rise in the demand for consumer goods and services; this is enhancing the necessity for investment across traditional products and services. The sectors that are benefiting from this move include telecommunications, agribusiness, the financial and business services, real estate and basic industrial production.
Natural resources
In addition to land and human capital, many countries in Africa boast significant natural resources, which can be developed in a sustainable manner. These include wildlife and related tourist attractions, fresh water lakes, rivers, seas and coastal areas with marine and aquatic resources. Some countries have vast mineral resources waiting to be explored and developed such as oil and precious metals – Africa has 21 percent of the world’s gold and 46 percent of the world’s diamond deposits, as well as copper and iron ore).
Land investments excite Wentworth International, especially in terms of agriculture. Indeed this is a dilemma that a continent with such high potential for agricultural yields has high food insecurity and frequent food shortages and famine, necessitating importation of food items from outside the continent at high costs. There is therefore a need to invest in the agricultural sector and those who venture into this will not only reap good returns but help Africa solve its chronic food problem.
Industrial investment in Africa is still very low compared to other regions of the world and yet with the growing economy of this region and the growing population, coupled with a fast urbanisation process, puts Africa ahead of other regions of the world in terms of prospects for future industrial investment, growth and in terms of potential for industrial goods market expansion.
In conclusion, there are many prospects for investment in Africa and it is in this regard that Wentworth International Partners was established. Wentworth’s objective is to focus on early stage companies that attribute more than 75 percent of their revenues from Africa within growth sectors exhibiting a clear upside potential.
We invest opportunistically, using a disciplined approach for selecting investments generated from a proprietary pipeline through long-standing relationships with key players in the region. Our mission is to be the leading premier Pan-African Investment Company with the vision to target investments in high-quality early stage enterprises with potential for regional growth. We seek to create successful partnerships with companies’ management in a variety of sectors; in order to create value for our shareholders while generating positive returns.
Wentworth International Partners is a company driven to find strong investments in Africa and support those with a positive vision for the country and her people.
Joyce Ollunga is CEO of Wentworth International Partners, the Nigeria-based investment company. For more information www.wentworthinternational.com
