Our investment model is designed to provide Three-Dimensional Capital™ to companies in Sub-Saharan Africa that have demonstrated solid growth characteristics.
Our investment criteria consider each of the following:
- Companies with annual EBITDA greater than $2 million
- Well-established, market leading businesses with sustainable competitive advantages
- Opportunities to deploy Three-Dimensional Capital™
- Direct and indirect job creation and ESG considerations
Africa’s significant endowment of underutilized arable land, coupled with Africa’s – and the world’s – increased demand for agricultural products, creates investment opportunities in the agribusiness sector, including establishing businesses further up in the value chain such as in storage and distribution, manufacturing and consumer products.
The emerging middle class consumer sector is an important focus area for us, allowing the Fund to benefit from Sub-Saharan Africa’s continued path of growth and private consumption.
With a limited, and generally expensive, supply of transportation, storage and other logistics solutions, Sub-Saharan Africa has a growing demand for logistics-related solutions.
Sub-Saharan Africa’s low-cost labor markets, coupled with the projected increase in demand of manufactured goods, provides investment opportunities in the manufacturing sector.
We believe the financial services, healthcare, education, Technology, Media & Telecommunications (TMT), and business services industries all present investment opportunities, and will evaluate such opportunities on an opportunistic basis.
The initial countries that we have targeted for investment are among Sub-Saharan Africa’s fastest growing, and ones that we believe have positive future economic and political indicators. Our investments will be anchored around the cities of Johannesburg, South Africa, Nairobi, Kenya and Lagos, Nigeria (where we have or expect to have offices), and include surrounding or nearby regions and countries.