Indian Ocean Africa

Our work focuses on the Eastern coast of Africa and hinterland

Comprising of Tanzania, Kenya, Mozambique, Zambia, Zimbabwe, Malawi and Botswana the area offers new economic possibilities driven by recent oil and gas discoveries and backed by Asia’s growing scale in the global economy. Abundant in resources, home to the world’s youngest workforce and crucial to resource security in and outside of the content, Indian Ocean Africa is emerging as a key gateway to the Middle East, India and the Far East.

Indian Ocean Africa offers a unique combination of macro, political, and social dynamics to investors

Underdeveloped Capital Markets

✓ Attractive valuations due to a shortage of capital

✓ Few public markets alternatives for investors

In Process of Economic Diversification

✓ Increasing diversification offers abundant untapped opportunities

✓ Low penetration rates and need to satisfy unmet demand

Geographic Advantage

✓ Gateway to Asia-Pacific

✓ On-going and planned infrastructure development programmes to accentuate Indian Ocean Africa’s geographic advantage by enhancing access to Asian markets

Sustained Growth & Stability

✓ Steady GDP growth rates, forecast to average 5.6% (2016-2021) for key economies in the region

✓ Relative political stability

Regional Integration

✓ Regional economic blocs with larger and integrated markets (SADC and EAC)

✓ Transport corridors linking main regions

High Consumption Potential

✓ Rising per capita GDP and middle class income

✓ Dynamic domestic markets

Considerations when investing in Indian Ocean Africa (and how we address them!)

Factors to consider include:

  • Insufficient investment-ready opportunities
  • High cost of doing business
  • Liquidity and exit risk

We therefore strive to provide solutions to ameliorate these risk factors, through the following strategic principles

Developing an Ecosystem of experienced technical assistance providers (e.g. donors and NGOs), business developers (e.g. logistics & distribution companies) and financiers to incubate opportunities

  • Leverage equity with Blended Financing (e.g. grants and subsidised loans)
  • Partner with firms with strong local presence and network
  • Collaborate with governments on design and implementation of development strategies and legislation

Create first generation Impact Investments to satisfy growing demand from private and public capital markets for this emerging strategy

Feel free to get in touch if you’d like to know more about how we want to help seed the transformation of rural communities