AfroInvestors

FALL ISSUE 2015

AfroInvestors THE FUTURE OF AFRICA

AFRICA:

THE NEXT INVESTMENT HAVEN

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AFRICA

TOURISM

ONE BLACK MONDAY

THE CHIBOK

IN NIGERIA

CHINA SENDS THE WORLD SPINNING

DILEMMA

THE RISE OF THE PHOENIX

AfroInvestors Welcome to AfroInvestors

Publisher:

Friends are clinking glasses to celebrate Friends of Africa’s

Supervising Editor:

(FOA) 5th year anniversary, and five years of glitz, glamour, and social impact as AfroInvestors is launched. Participants at FOA have been asking why they need to wait for the annual meeting to network with new partners and explore business

Olutoyin Oyelade

Rizalyn Vale Editorial Assistants:

opportunities. AfroInvestors responds to these yearnings by

Amanda Armstrong

providing information from vertical sectors on partnership,

Enitan Oyesile

business expansion, career development opportunities.The magazine provides information on available investments across the developed and Frontier markets. As the official Magazine for FOA, AfroInvestors is distributed free to individuals and organizations including embassies, chambers of commerce, and government offices across Canada, Ghana, and Nigeria.

Graphic Designer: Ife Oyelade Graphic Consultant: Joe Figliola JR Graphics

This edition of AfroInvestors has information on the evolving financing and investment platforms in Nigeria and Canada

Editorial Board:

(apart from Banks), the drivers of these platforms, and how to

Olusola Oyelade

access their products. AfroInvestors research team do a fine

Adekunle Adegbulu

job of presenting the implications of the Ontario budget on

Rizalyn Vale

your private, operating, and capital costs. Our research also show that “things can fall apart” in stable and “perfect” markets. The recent Chinese “fiasco” is a must read for those who keep their eggs in “One” basket. Other reports in this edition will excite and inspire you to rethink your business focus. Finally, It is generally assumed that life has three categories of people--those who hear things happen, those who watch

Olutoyin Oyelade Contributors: Nate Suppaiah Emerging Markets Investors Association Olutoyin Oyelade Rizalyn Vale

things happen, and those who make things happen; today,

Casa Foundation Council

lets imagine a fourth category--those who “Ask” how things

Olumide Akintayo

happened and “Act”. They may not have what it takes, but they

Kayode Fayemi

get enough information to start and they pursue until they

Elvis Afriyie Ankrah

possess their part. AfroInvestors is written by experts and decision makers in diverse fields of endeavor. You will find their insights easy to understand. I urge you to ask questions, act based on your judgement-- and become an AfroInvestor. God bless the new AfroInvestors.

AfroInvestors Research Advertise With Us: Info@Afroinvestors.com www.Afroinvestors.com 10 Four Seasons Place, 1061 | Toronto, ON | M9B 6H7 | t: 1.866.431.4838 | f: 416.649.5701|

Olutoyin Oyelade Publisher

2015 AfroInvestors© No statement in this magazine is to be construed as a recommendation for or against any particular investment. Neither this publication nor any part of it may be reproduced in any form or by any means without prior consent of AfroInvestors

FALL 2015 | afroinvestors.com |

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CONTENTS 10 AFRICA: THE RISE OF THE PHOENIX

50

RECENT ADVANCEMENTS IN HEALTHCARE NANOTECH

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ACCESSING FUNDING 20 OPTIONS

60 THE CHIBOK DILEMMA

30 ONE BLACK MONDAY: CHINA SENDS THE WORLD SPINNING

6

MOVING INFRASTRUCTURE FORWARD: THE ONTARIO WAY Afro Investors Research

16

TOURISM IN NIGERIA

HE Kayode Fayemi

IN PRIVATE 24 OPPORTUNITIES EQUITY

Nate Suppaiah Emerging Markets Investors Association

38 56 REBUBLIC OF GHANA:DEVELOPMENT PARTNERS: AN ACTIVE PRIVATE SECTOR AND GROWTH

62

CASA FOUNDATION IN THE COMMUNITY Casa Foundation

A FRIEND OF AFRICA

Mary Anne Chambers

44 THE CHINESE PHENOMENON

FALL 2015 | afroinvestors.com |

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INFRASTRUCTURE

MOVING INFRASTRUCTURE FORWARD:

THE ONTARIO WAY By AfroInvestors Research

M

oving Ontario Forward is part of Ontario’s investment of more than $130 billion over 10 years in transit, transportation and other priority infrastructure within and outside the Greater Toronto and Hamilton Area (GTHA).The Government of Ontario held its budget briefing and stakeholder consultative meetings over several weeks in the 2nd quarter of 2015. Following a 4-hour Budget lockup by organizations representing the Ontario public, the final budget was presented to the legislature for approval. The budget discussions focused largely on the Moving Ontario Forward

program which seeks to immediately invest CAD130b in various infrastructure projects over a 10-year period and the Building Ontario Up (BOU) plan, which aims to facilitate the development of infrastructure, create jobs, invest in talents and innovators, secure retirement schemes, support industries and growth of Small and Medium Enterprises (SMEs). Our research team attended the eosins and brings you the main highlights of the sessions and implications for households and businesses:

Infrastructure planning Ontarians already feel the effects of unplanned growth every day during their commute.The average commute for a Greater Toronto and Hamilton Area (GTHA) resident is 82 minutes per day from home to work — that’s more than many major international cities, including Los Angeles. Congestion, time,and gas wastes costs the GTHA more than $6 billion each year, and it costs Ottawa-Gatineau $200 million a year. This is due to several factors that include the social aspects of life adjustments such as how people adapt and restructure their lives for traffic, the estimated cost of congestion in the GTHA, the wait times o transit across locations, and the unexpected acts of delay. To address these issues the Ontario government plans to implement the following: Expand the GO Regional Express Rail to transform the GO Transit network over the next 10 years, creating new travel choices for residents throughout the Greater Toronto and Hamilton Area with electrified, 2-way, 15 minute service Connecting the transit links program will provide funding for projects on municipal roads that connect provincial highways through urban areas. Ontario plans to develop Hurontario-Main LRT project. A new 23 km light rail transit (LRT) line in the Hurontario-Main

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Street corridors, linking Port Credit, Cooksville and Brampton GO stations with Mississauga City Centre and downtown Brampton. The Metrolinx Big Move project is a pro-

and maintaining a healthy environment, high quality of life and a culture of conservation

ject aimed at transforming the region’s transit system by expanding the network and providing resources for local transit, roads, active transportation and more.

GAS Natural gas expansion will focus on two new programs to help expand access to natural gas in more communities across the province

New roads and transportation The Province plans to embark on the development of New roads, transit, and other transportation infrastructure well ahead of growth to avoid traffic congestion. To address the congestion issue, construction of ROAD NETWORKS IN THE GTHA will begin with the following highways: Hwy 11/17 4-laning, Hwy 66 realignment, Hwy 401 bridge replacement/ interchange enhancements in London and Hwy 7 4-laning in Kitchener/Guelph. A new subway line with five stops is also scheduled for development over 10 years to complete from the planning and environmental

About The Author: AfroInvestors Research Team is a group of young talented entrepreneurs drawn across various professions in the infrastructure, health, and education sector. For all enquiries kindly send your emails to research@afroinvestors.com

assessment stage to the start of service.

Investments in our communities Government funding to investments within and outside the province will be allocated based on population using census data from Statistics Canada. Therefore about $16 billion has been allocated for transit projects in the GTHA and another $15 billion for infrastructure projects outside the GTHA. These figures represent an increase of $1.4 billion for the GTHA and an increase of $1.2 billion elsewhere in Ontario

Housing: Studies have indicated that compact,

smart growth development saves money. Previous statistics and survey show that well-planned housing patterns save up to 30% on capital costs, and up to 15% on operating costs for infrastructure compared with traditional development patterns. Ontario should plan its housing development and general urban planning to avoid patterns that create negative conditions for residents and to prevent urban sprawl, which has negative effects on the environment and could expensive. For the Ontario government, planning for growth should imply: sustainability of a robust economy, that improves livelihoods and business growth, building strong communities that use land, resources, capital,and existing infrastructure efficiently, availability of amenities and community infrastructure to support businesses and a good quality of life promoting FALL 2015 | afroinvestors.com |

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INFRASTRUCTURE

THE RISE OF THE

PHOENIX By Olutoyin Oyelade

A

frica is rising again. Described as the last big emerging market with a compound 6% annual economic

As of 2009, the UN reports that the Frontier

growth rate, from oil sands, to pyramids, mineral de-

Markets represented 17 of the 20 fastest grow-

posits and gold mines, the gaps that stalled Africa’s

ing economies in terms of average annual GDP

integration into the larger comity of nations are now

growth. For several frontier countries, the GDP

closing. Whether its seen as a country or continent,

growth in 2011 is forecasted to be greater than

the story of Africa is no longer about the aids received but its growing

China’s and India’s, like Qatar 16%, Ghana

rate of successful infrastructure investments facilitated by Private sec-

13%, Mongolia 12%, Eritrea 10% and Ethio-

tor partnerships. Increasing government reforms across the top 10 re-

pia 9%. Frontier markets account for 22% of

formist nations that contribute 76% of its GDP (including South Africa,

the world’s population and 7% of the world’s

Nigeria, Ghana, Egypt, Angola), now mark the face of Africa. The states

GDP, but only 3% of the world’s market capi-

that contribute to this positive index and an enabling environment cre-

talization, compared to emerging markets with

ated by increasing capital inflows of $84b p.a (excludes remittances,

63% of the world’s population, 42% of world

aids), reducing inflation, and a rising young population are some of

GDP and 42% of market capitalization. How-

the growth drivers in the continent. Reducing rate of conflicts across

ever, the frontier market index outperformed

the region has also engendered confidence for business continuity.

the EM index in six of nine years of up-markets and in five of six years of down-markets.

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How did Africa get here? It is no longer news that opportunities have developed wings. The big returns are no longer where we used to find them. The predicted global market recovery has failed to rally the markets, returns are not the way they used to be in the developed world and the truth is the BRICs are no longer at ease. As the cheese thins out, so is the shine lost to the new kids on the block-the N-11 countries.

Amongst the Next 11 are the earlier

listed reformist African nations, growing at an annual 3% average, single digit inflation, reducing conflicts and employing labor. Most now outpace some developed and BRIC nations on the Emerging market index.

The “Doing-Business-Index (see Table in Ap-

pendix) was developed by the World Bank and the IFC based on the factors including: Ease of obtaining credit, length of time to register a business or to close a business down, level of protection for investors, how enforceable are contracts, payment of taxes etc. The index is telling as it describes the level of red tape that an investor may encounter in each country. 2009 report show South Africa and Nigeria in the lead the economic index with a PPP (purchasing power parity) of $524b and $378 respectively. Nigeria leads in terms of potential market size but South Africa and Botswana lead on the business environment argument, “Doing-business-index”.

Africa’s low facility density is by itself the op-

portunities that discerning investors have explored for growth over the years. Many investors find a veritable source of investment opportunity in telecoms, roads, housing development, and transport sectors and have reaped good returns therefrom.

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The UNCTAD (2011) reports that average returns on FDIs

of real estate, telecoms, energy, and finance. It is evident

into Africa peaked at 29% since early 2000 and can only

that Africa can no longer ignore the central role of infra-

improve.

structure in creating competitive advantages and, other avenues for global integration and trade. The potential

For instance internet density is put at less than 1 in

value addition of human development and improved so-

10 or 80-1000, rail network density at 50/1000 when com-

cial amenities and better productivity outcomes that im-

pared to 200/1000 in Europe, power costs at $0.14cent per/

proved infrastructure promises, will no doubt support the

kwh (about $5cents in US), mobile telephony at $12 per month

continent’s efforts to attain increased economic growth.

when compared to $8 in other developed nations and a road

road density of 200-1000. Less than 40% of the continent’s

The question is ‘Where are the opportunities in Africa’? And Who is on the Train?

population has access to electricity; about a third of the ru-

Africans economies are looking to restructure and a robust

ral population has access to all season roads (AfDB, 2012).

private sector is developing in many of these economies.

network density of 50/million (except in SA and Botswana that boasts of 400/mille). Europe for instance enjoys a

Family-run Companies are increasingly looking at inviting As a result of these gaps, most African markets remain

institutional investors, venture capitalists, and private eq-

highly unregulated with pricing disparity across sec-

uity funds to become shareholders given the challenges

tors. You are likely to see an IBIS hotel charge $200-

that many of these family-run businesses have in raising

$250 in places like Lagos, Nigeria while a night stay

capital through debts.

at Radisson could range between $400-$600 when

compared to the $40-$100 in developed countries.

beginning to realize the potential of the private sector in

In the financial markets, the recent loss in value

increasing the Country’s tax (revenue) base. These govern-

of major stock markets worldwide has led HNIs (high net

ments now view institutional investors as long - term inves-

worth individuals) and institutional investors’ to turn their

tors who bring professionalism and accountability coupled

focus back to PEs. This change is driven by the potentially

with the ability to expand market opportunities through the

significant returns and the agility with which private funds

use of their marketing networks, they are therefore more

sniff out the deals. With a good turn around time, the value

acceptable than large multi-national corporations who are

addition is clear. With the current slide in returns in de-

encumbered in some of these countries by reputations of

veloped markets EMs (emerging markets) such as Africa

exploitation. These challenges are not unmitigatable with

represent a viable market for economic rent particularly

a top-down approach to investment, and several investors

in locations where the risks can be successfully managed.

who have taken a plunge have some impressive successful

A previous trend of stifled growth and low facili-

stories. In telecoms, there is Airtel from the Middle East,

ty density is now paving way for developmental opportu-

MTN and Econet from South Africa who took a bet on the

nities for relevance in a globally depreciating economy.

Nigeria and West Africa mobile-phony markets since 2000.

Although its relatively low infrastructure points to the ex-

istence of untapped productive potential, synergies be-

ca; KFC and Dominos from the United States; spreading

tween DFIs, investors and private sector participants are

across Africa. Hotel franchises such as the Protea of South

finding ways to unlock Africa’s developmental potential

Africa, Radisson, Intercontinental, IBIS and Holiday Inn

through scaling up investments in high growth sectors

chains are settling for a bigger share of the local markets

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Similarly, governments across the continent are

In the food chain is Shoprite, Nandos from Afri-

In roads: private sector participation is fast increasing. Before 1999, private investments in roads was about USD1.4 billion, this has been scaled up to about $25b through PPPs (public and private partnerships) and direct investment initiatives of DFIs. The Lekki- Epe toll-road in Lagos, Nigeria is one of such projects put at about $400. The Trans-African corridor, a network of transcontinental road project (9 highways of 56,683km), being developed by a collaboration of the AfDB, AU and UNECA (United nations Economic Commission on Africa), is another. In energy, Angola and Uganda’s emergency Power Solution that targeted 1,000 megawatts within its first phase relying on emergency power plants, which later evolved into IPPs (independent Power projects) demonstrates some efforts to address these deficits. With an Infrastructure development fund from China Development bank, Angola seems to be leading the cohort of African nations in developing the energy, real estate and industrial sectors. Recently, IFC (2013) announced an investment of $1.5 b in Nigeria’s power infrastructure and is working on the Energy Business Plan with the government to address the epileptic power supply in Africa’s most populous nation .

But China particularly appears to maximize invest-

ments opportunities in Africa. It investments have increased in recent years, rising from only USD 1 billion in 2001 to about USD 7.5 billion in 2006 (AfDB, 2010). A total of 35 African countries have particularly benefited, with about 16% of the resources flowing into infrastructure. Average allocations of these flows over the 2001 - 2007 period show that the electricity and transport sub-sectors have benefited most (Figure 7 & 8). “It is also noted that the largest recipients of Chinese FDI into African infrastructure are Nigeria, Angola, Sudan and Ethiopia. China has also invested in the transport sub-sector in Nigeria, Gabon and Mauritania” (World Bank, 2009).

These companies, supported by various invest-

ment vehicles have latched on to the “good wind’ blowing into Africa. They are not only on ground leveraging opportunities for robust returns; they are impacting lives by creating employment and developing basic amenities to change the face of Africa. Their significant revenues have in more cases than one, transformed their organizations from continental players to global brands now represented across other continents of Africa, Asia and the Middle East.

Doing Business In Africa It is no longer in doubt that Africa is now seeking partners to turn its lack of capacity and deficient infrastructure to catapult and re-invent itself as giant of reckon through its

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In pursuit of a sustainable development agenda, PEs, DFIs and other Institutions appear to have benefitted from their leap of faith drawing from the positive investment testimonials. They await others to join and learn from their progenitors. The ultimate goal is to fast track the infrastructure development process and provide sustainable small and medium businesses that create employment for the young population of Africa currently … but estimated at 42% of the world in the next 25 years (World Bank, 2012).

Africa should not only industrialize its continent, but

also position itself as a viable destination for future economic investments by private Institutions, and improve its positive index/ credibility as a “first choice” PE continent. Given the very high growth rate of these economies and its immense potential opportunities, it can no longer be ignored by private funding sources.

African governments are now pursuing the same agen-

da of private financing and new partnerships to increase their tax benefits and to scale up financing from various sources to close its facility deficit on a sustainable basis. The inadequacy of public funds to support Africa’s infrastructure gap, currently put at an annual $93b till year 2020 (AfDB, 2010), is daunting. However, the case studies of the few countries that have initiated some policy action to address these challenges indicate a light at the end of the tunnel.

About The Author: Olutoyin Oyelade is the Managing Partner at InVcap and Chairs its Management Investment Committee. She oversees the management of the firm’s private equity funds. Olutoyin serves on the boards of corporations including Casa Foundation and Friends of Africa. She is the Convener of the Friends of Africa Economic Development Summit in Canada. She was Group Executive of Investment Management at Intercontinental Group (IBG) between 2007 and 2009 and managed IBG’s global fund and investment portfolio of $8bn in the UK, Ghana, and Nigeria. She is an MBA graduate

References and tables: IFC (2013). Retrieved from: http://www.afriquejet.com/ news/10632-infrastructure-development-in-nigeria.html

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of Nigeria’s premier University of Ife, a graduate of Advanced Management at Wharton, and Business Marketing at IMD Business School, Lausanne. .

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INFRASTRUCTURE

OPPORTUNITIES IN THE NIGERIAN TOURISM SECTOR:

GIANT STRIDES IN THE SOUTH WEST By Kayode Fayemi Nigeria is one of the fastest growing economies with largest population in Africa and the highest concentration of black people all over the world. Despite surmountable security challenges, Nigeria is a viable economy and a diverse nation with abundance of opportunities in many fields including vast natural and human resources and opportunities in various

wildlife etc . Natural attractions – Warm springs, topography, geographical resources and a population [and potential market] of 150 million people.

Institutions and Agencies Some of the tourism agencies in Nigeria are listed below:

sectors including tourism

• Nigeria National Park Service (NNPS)

Nigeria has ethnic groups with DISTINCT and UNIQUE Cul-

• State Tourism Development/Management boards

tures, Peoples, Myths, and ways of life. Religious beliefs (spiritual tourism – imagine, for example, millions of people from all over Nigeria, and additional 20,000 persons from the Diasporas, the US, UK and other African countries attending the Christian festivals every month. It enjoys a benevolent climate; Rain forest, Savannah, Waterfalls, Rolling Hills, Caves, other natural attractions like deserts, serenity,

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• Nigerian Tourism Development Corporation (NTDC)

National Parks Nigeria boasts of the largest tourist resorts that include: • Lake Chad National Park • Cross River National Park (Okavango and Obansections) • Gashaka-Gumti National Park, • Kainji National Park (Borgu and Zugurma sections) • Okomu National Park

• Old Oyo National Park

comfort through locations - Rail systems, light rails, trains,

• Yankari National Park

metrolines,

Administrative Regime

• Water transport • Air Transport (Investments in airlines and airports con-

Under its tourism management regime, several incentives

struction)

are in place for investors. They include:

• Potable water quality etc

• Tax holiday

• Education & Human Capacity development for quality

• Longer years of moratorium

service

• Import duty exemption of tourism related equipment

• Security

• 25% tax exempt income for hoteliers (rechanneled into

• Insufficient accommodation, lodges, hotels, resorts etc in

tourism for 5 yr period)

Nigeria

The Challenges The challenges associated with the tourism sector

• Artificial tourism development as destinations • Insufficient tourism leisure, conferences destinations, parks etc

borders largely on efficient tourism infrastructure: • Poor electricity • Access roads to easily and quickly transport people with

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The South West is home to 40 million people. It features arable land and agricultural produce and has numerous small and medium-scale enterprises with robust informal sectors and human capital

Tourism in the South West The South West is home to 40 million people. It features arable land and agricultural produce and has numerous small and medium-scale enterprises with robust informal sectors and human capital such as artisans, traders, technicians etc. Dated and exciting tourist sites with global acknowledgement are located in Ekiti, Oyo, Ile-Ife, Ibadan, Ilesa, Ogbomoso, Osogbo, Badagary, Idanre and Abeokuta.

The new DAWN • Development Agenda for Western Nigeria(DAWN) • Effective transportation (including modern rail system), • Security • Infrastructural development • Power and Energy • Sports development • Cultural exchanges and development Ekiti State • 300km from Lagos Airport and 40km from Akure Airport

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• Undulating (rolling) hills dotting entire landscape • Wildlife, rivers, waterfall, warm spring, unspoiled nature (fauna and forest) • Local customs, homogeneous people, handicrafts • People-friendly environment people’s Focus • To our people, Tourism means • Jobs, more Jobs and wealth creation • Quality service to all customers • Gateway out of poverty to economic progress • They see prospects for greater respect and dignity and • A better standard of living and a better life (This is the focus of the Federal Government) • Attain regional leadership in Tourism • Attain national recognition by December 2012 • Transform into significant national and international tourist destination • Becomes an all year round tourist destination • Branded as friendly, peaceful, stable and secure

• Positions Tourism as the driver and catalyst for its development and that of the region • Competes favourably in the global tourism market place • Bureau of Tourism Development

Conclusion Given the right focus, the Nigeria tourism sector would become a money spinner (cf: growth in telecoms) and should be an invitation to potential investors. YOU ARE WELCOME TO INVEST IN NIGERIA’S TOURISM SECTOR.

About The Author: Kayode Fayemi is the immediate past Governor of Ekiti, Nigeria. As Executive Governor till 2014, Fayemi unlocked the opportunities in a landlocked region to foreign investors.Today, the State of Ekiti boasts of the major legacy investment pro-

Editors Note: This article was culled out from Dr Fayemi’s paper delivered at Friends of Africa 2011.

jects in South Western Nigeria including the Main Civic Centre with library facilities, re-development of the only Warm Spring Resorts, and the first WaterParks Resorts in the Country.

FALL 2015 | afroinvestors.com |

19

FINANCE

FUNDING OPTIONS FOR ENTREPRENEURS AND BUSINESSES By AfroInvestors Research

A major challenge facing most Canadian businesses is how to find and take advantage of suitable Canadian government grants and loans to assist with their cash flow and accelerate their growth.

A

major challenge facing most Canadian businesses is how to find and take advantage of suitable Canadian government grants and loans to assist with their cash flow and accelerate their growth. In reviewing the financing options for growing businesses, start ups, and Entrepreneurs in Canada, AfroInvestors research team found that funding

options include grants that are open to innovators and students and other lines of credits that could be availed to Small/Medium Enterprises (SMEs). Each program has a specific and unique eligibility criteria that business owners and entrepreneurs should review before sending out applications to ensure that a “best fit’ solution is accessed for their businesses and projects.

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Some of the funding options include: Business

riculture, agri-food, fish, and seafood industries by allowing

grants and loans ranging from $10-$20M within the prov-

them to identify market priorities and carry out marketing

ince of Ontario. These loans are targeted at organizations

activities to develop export opportunities:

(For-profit & Not-for-profit) to improve productivity,for business expansion, to develop cutting-edge technology

Agri-Marketing Programs:

and innovation, and to encourage partnerships and col-

The following transactions qualify for funding under the

laboration between research & post-secondary institu-

Agri marketing program:

tions within the industry. Loans are availed for business

•Development and production of advertising materials

purposes and acquisitions. Funding is provided to major

•Trade shows, conferences, and trade missions

business sectors which is indicative of the focus of govern-

•Implementing marketing and branding plans

ment developmental programs. AfroInvestors research brings you a summary of the funding database to entre-

Apprenticeship Training Tax Credit (Ontario)

preneurs across vertical sectors of the economy. The da-

This category of government support covers the training

tabase features a list of funding options for Businesses,

and certification of new trades apprentices through wage

the providers of funds, the solutions offered, and how

subsidies. The credits availed to businesses covers the

these options work. Major categories of funding include

training of new trades employees and provides the follow-

the Sectors highlighted in the summary below:

ing: •Incentives that allows Business owners, SME’s, and Entre-

Manufacturing

preneurs to hire new apprentices in trades

•Labour

•Registration of new trades apprentices in sectors where

•Capital

there is high demand for skilled workers

•Non-Capital •Expertise related costs specific to the project

Automotive Supplier Innovation Program (ASIP) This product provides research and development grants

Agri innovation Programs:

to assist with innovative automotive product development.

Industry-led Research & Development Stream: including

Ideal projects activities include:

those that support pre-commercialization R&D, leading to

•Prototyping;

new agri-based products, processes, and practices. This

•Product engineering; and

program includes the following:

•Pre-commercialization testing and validation.

•Combines industry, academia, & government expertise to promote innovation

Build in Canada Innovation Program (BCIP)

•Scope may be national, regional, or local

The Build in Canada Innovation Program is a first purchase program offered by the Canadian government. Eligible

Enabling Commercialization & Adoption Stream:

transactions include:

Accelerates the rate of identification, assessment, devel-

•Pre-commerical, innovative product or service opportuni-

opment and adoption of innovation-based products

ty to bridge the commercialization gap

•Commercialization projects of a new product or innova-

•Must be of use to the Canadian government by improving

tion

efficiency and effectiveness

•Technology adoption projects to improve internal operations or end products

Canada-Ontario Job Grant (COJG)

•Provides non-repayable funding support to Canadian ag-

This program provides access to the following funding and

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training opportunities: •Receive up to 66% or $10K in training grants per trainee to

In addition to the summative report provided,

enhance your workforce.

the Annual Friends of Africa (FOA) Economic Develop-

•Training that improves skillsets and career advancement for

ment Conference in Canada presents additional oppor-

staff

tunities through the Entrepreneurs’ Forum for detailed

•Training can be carried out throughout the calendar year.

presentations and discussions by Trade experts and

•Program available from 2014-2020 with an annual funding

Economists from the Canadian government on the avail-

pool of $192M in Ontario.

able support to SMEs and manufacturers. Don’t miss the opportunity to network and ask subject matter experts

The Canadian Media Fund

about the modalities of the Funding options offered to

This is a grant for developing, producing, and promoting in-

businesses by the Canadian Government. Keep a date

novative, interactive software development projects includ-

with networking groups at the next FOA.

ing apps and video games. •3 streams: Development, Production or Marketing & Pro-

About The Author:

motion of art- related activities •Covers up to 75% of eligible costs up to $400k/$1 million

AfroInvestors Research Team is a group of young talent-

•Canadian companies can apply if ≥75% of content is devel-

ed entrepreneurs drawn across various professions in the in-

oped in Canada

frastructure, health, and education sector. For all enquiries kindly send your emails to research@afroinvestors.com

CDMN Soft Landing Program This product offers funding to mature startups and SMEs to enter into new markets, close international sales, or connect with new partners. The program connects businesses to local incubators to help fund international business activities. Up to $4K in funding for international activities •Partnership with local business accelerator for market development •Desk space and associated services covered by CDMN for up to 3 months CME SMART Advanced Technologies for Global Growth The global growth fund provides financing to southern Ontario manufacturers advanced technology adoption projects with up to 50% or $15,000 towards assessments and 35%

Leave your comments

or $100,000 towards adoption and implementation. Eligible projects must lead to export expansion and can focus on: •Additive manufacturing technologies

info@afroinvestors.com

•Robotics, automation, and sensor-based technologies •Advanced ICT business systems, including ERP and CRM implementations •Nanotechnologies and green technologies FALL 2015 | afroinvestors.com |

23

FINANCE

OPPORTUNITIES IN NIGERIAN PRIVATE EQUITY By Nate Suppaiah

The last seven years have seen remarkable and sustained growth in Nigeria’s economy and marked improvement in its investment climate, turning it into a top destination for global investors increasingly open to frontier market plays.

N

igeria’s growth has been a function not only of highly propitious demographics (the largest population in Africa, with a young and swelling consumer middle

“Private equity funds, both foreign and domestic, see a huge potential in Nigeria,” says Olutoyin Oyelade, Managing Partner at InVcap, an investment manager that provides accredited investors access to investment op-

class) and global natural resource economics, but

portunities in Nigeria and other

government-led reforms that have brought stability

countries in West Africa. “The

to financial markets and injected private sector

funds and expertise into economic development. Nigeria’s seven-year spell of growth has coincided with—and been funded in part by—the country’s burgeoning private equity industry, including major foreign investment firms and, more recently, boutique domestic firms founded by a new generation of seasoned African investment professionals.

main draw is certainly in how the middle class and the consumer story has unfolded over the past few years. This middle class itself is rapidly growing, with new appetite, new attitude, and a need for quality products.”

In no time, the wind of change will not just blow over Africa, it will settle to engender the infrastructure growth that we expect to see

FALL 2015 | afroinvestors.com |

25

The main draw is certainly in how the middle class and the

consumer story has unfolded over the past few years. This middle class itself is rapidly growing, with new appetite, new attitude, and a need for quality products.” Before the late 1990s, a private equity industry hardly existed in Nigeria, save for a handful of large foreign investment banks that had taken stakes in domestic Nigerian banks and carried out some transactions. Gradually, global private equity firms, including Helios, Actis, Emerging Capital Partners and others, started entering the market. Then, in the late 1990s, two indigenous private equity firms, African Capital Alliance and ARM, opened shop, signaling the beginning of a domestic private equity industry that would come to comprise over 10 boutique firms as at 2013.

Next Generation Private Equity InVcap is part of this new generation of firms that were created by Nigerian and West African mangers who plied their trade in banks and first-generation private equity firms over the last decade. The firm was founded in 2012 by a group of partners with decades of experience in investment banking in West Africa and special expertise in construction development in particular

They saw huge opportunities in Nigerian and West African

real estate, Ms. Oyelade says, as well as other sectors affected by the consumer class boom, and decided to bring their expertise to the table, serving both domestic and global investors. InVcap now has investment and administrative teams in Toronto, Nigeria and Mauritius. Its first fund—InVcap Private Equity Fund I (IPEF I)—will invest US$100 million in West Africa over a 5year period, focusing on commercial real estate, hospitality, tourism, and support infrastructure (renewable energy, road, transport) for these projects. Ms. Oyelade says that her firm’s sector focus is in line with their strategy to provide infrastructure development capital to the commercial real estate and hospitality sectors in West Africa. Some partners of InVcap were part of Casa Consult, a Nigerian/ Canadian construction development group that has delivered more than 30 commercial real estate and tourism sector projects under build, operate, and transfer (BOT); joint ventures (JV); and public private partnership (PPP) structures: including the only warm springs resort re-development in the country.

After 22 years of operations under Casa, and with invest-

ment management skills garnered in West Africa over a cumulative 100-year period, it seems logical that the partners will naturally progress, as a fund manager-InVcap, towards funding the deal types that they successfully executed before now. The consumer sector, telecom, power sector (focusing on downstream power providers) and sectors that leverage the rising middle class are of interest to most domestic PEs. Foreign investors, meanwhile, are generally investing in large infrastructure projects, the aviation sector, telecom, fi-nancial services, and the entire energy supply chain—leveraging their size and access to capital and resources. “They are aggressively investing

26 | afroinvestors.com | FALL 2015

Still, even as Nigeria’s private equity industry has grown, both fueled by and fueling the country’s economic growth, the overall activity and impact of small, indigenous firms has been relativity limited, particularly in comparison to its wealthier foreign counterparts, Ms. Oyelade says.

The Economist remarked earlier this year, frontier markets have gone from being a fringe bet for risky mavericks to constituting an asset class in their own right.

in these sectors because they not only have a first mover advantage, they have the dollar power they bring with them,” Ms. Oyelade says. Ms. Olutoyin Oyelade also points to foreign investors entering Nigeria’s food and retail sectors, including South African firms investing in large chain stores and restaurants across Nigeria’s densely populated areas.

Seeking Foreign Investors Still, even as Nigeria’s private equity industry has grown, both fueled by and fueling the country’s economic growth, the overall activity and impact of small, indigenous firms has been relativity limited, particularly in comparison to its wealthier foreign counterparts, Ms. Oyelade says. She attributes the lack of accelerated growth in the industry, in part, to the size of investments that Nigerian pension funds can make, while foreign managers with access to foreign pension funds—as well as foreign development finance institutions—have been able to land larger, more impactful deals. . “If you look at offshore managers, they are most often funded by pension funds—as well as family offices and other institutional investors, but mainly pension funds. They contribute FALL 2015 | afroinvestors.com |

27

But in Nigeria this was not so. Up until 2013, the pension commission (PENCOM), which has over 3.2 trillion naira in pension assets, (about US$16 billion), was only allowed to invest about 5% of its assets in private equity; the capital and money markets were the main beneficiaries; even the 5% isn’t fully invested, because there were stringent criteria for investments and this has impeded the growth and impact of funds. However, a new Pension Reform Act signed in 2014, favors up to 50% of PENCOM’s asset classes in variable income instruments including private equity (PE). This act should change the PE landscape in Nigeria such that more developmental impact is seen.” She explains that for its first fund, InVcap is looking especially for pension funds (local and foreign) and family offices to make investments of between US$1 million and US$10 million. “Other institutions are welcome, but the time needed for due diligence will be a major consideration for us, and that’s a big reason why we’re focusing on family offices and pension funds.” The fund’s appeal to foreign

Nigeria’s GDP surpassed South Africa’s as the largest on the continent. Nigeria also has Africa’s largest population, with a growing middle class. And, of course, it continues to be rich in natural resources, notably oil and mineral resources. Trade with the U.S., China and other countries have grown considerably in the last decade.

But Ms. Oyelade stresses that Nigeria’s is not

simply a demographics and natural resources story. The sustained economic growth has much to do with government policies instituted beginning about nine years ago. “The transformational agenda of the federal government of Nigeria itself, which was setup in 2005, has yielded some of these positive outcomes in several important sectors that have been privatized—including energy, telecoms, and IT sectors, where there have been some success stories (MTN of South Africa, Etisalat) due to these reforms. The country’s economic progress emanates partly from the government’s deregulation exercises and oth-

investors should lie in its on-the-ground credentials and

er policy moves, such as the rebasing of the economy.”

its close access to high-growth sectors within booming

Closing the Perception Reality Gaps

economies, she says. “With our local presence, we intend to latch onto the good wind that has been brought about

in Africa. This is a fund founded by Africans and based

benefitted from an improved image among investors and

in Africa, and we know that we can manage the assets

global mass media, which are more and more attuned to

given our track record in the real estate industry and di-

the improving investment climate among the continent’s

verse sectors over the years of cumulative experience.”

reforming countries and the returns reaped by alterna-

In Line with the Times

These qualities are indeed appealing to global

investors, who are turning to frontier markets for high returns and diversification. Increasingly frontier markets constitute an essential component of the portfolios of wealthy family offices and large institutional investors. Indeed, as an essay in the Economist remarked earlier this year, frontier markets have gone from being a fringe bet for risky mavericks to constituting an asset class in their own right. And several of the most attractive frontier markets are in Africa, and West Africa in particular. As Ms. Oyelade notes, by some accounts 23 of the 25 fastestgrowing economies in the world are in frontier markets, and the majority of these are in Africa. Countries such as South Africa, Nigeria, Angola, and Ghana lead the 16 reforming countries on the continent, which account for 76% of its total GDP. With an annual growth rate around 7% in recent years, Nigeria ranks near the top of frontier markets with large populations. Earlier this year, after the federal government decided to rebase the country’s economy,

28 | afroinvestors.com | FALL 2015

African countries, including Nigeria, have also

tive investments in high-growth African economies. Ms. Oyelade notes, however, that the continent’s image still suffers due to localized tragedies that, all too often, dominate headlines and give a false impression of region-wide or countrywide chaos. A case in point is the current Ebola outbreak in West Africa that has riveted and frightened the world. She emphasizes that the Nigerian government has been more effective at managing this crisis than others in recent times, earning praise from the United Na-

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“People are confident that the government is really on its toes in managing the situation. Even though the Minister of Health has confirmed that the country isn’t closing its borders, because we can’t afford to, they’re being very aggressive in screening inbound and outbound travelers, having committed US$15 million to its treatment. And I think these measures have instilled confidence in investors, rather than eroded it.” In general, Ms. Oyelade believes that global investors are beginning to pierce through the prejudice that has long obscured the reality of Africa as investment destination. “Africa in general was a ‘dark continent’ to investors for too long,” she says. “The tendency was to ignore it completely or deal with it at arm’s length. But the story is changing, and it’s allowing investors to begin to explore the real opportunities that exist.” “In no time, the wind of change will not just blow over Africa, it will settle to engender the infrastructure growth that we expect to see”

About the Authour: Nate Suppaiah is the Director of EMIA (www.emia. org), the Emerging Market Investors’ Association as well as managing editor of Alternative Emerging Investor, www.aeinvestor.com. He began his career as a wilderness paramedic. He turned to economics after covering China’s acceptance into the WTO for The Economist (Beijing). In 2004 he joined Oppenheimer’s Chicago office as an associate broker, then returned to China as a management consultant for a German firm specializing in strategic entry analysis & due diligence. In 2007 he moved to Buenos Aires, launching CapRG. He has a degree in finance from Univ of Loyola(Chicago)& Masters from the Univ

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of Buenos Aires (Int’l Econ Relations)and the Univ of Bologna (Development, Innovation & Change)

FALL 2015 | afroinvestors.com |

29

FINANCE

China has been a major contributor to economic growth and low global inflation for more than two decades. But investors around the globe were caught in the flux after one of the worst day’s trading in many years. They’re now pondering whether the Chinese fiasco marks the start of a new and alarming phase of the crisis, which began some eight years ago.

C

hina has been a major contributor to

The mass panic, dubbed “Black Monday” by China’s official

economic growth and low global infla-

state news agency, was driven by investors’ dashed hopes

tion for more than two decades. But in-

that Beijing would inject a fresh round of stimulus into

vestors around the globe were caught in

its economy following a series of disappointing data last

the flux after one of the worst day’s trad-

week. The jaw-dropping 8.5%, at 3209 points closed down

ing in many years. They’re now ponder-

after a dramatic day’s trading. The Shanghai stock market

ing whether the Chinese fiasco marks the start of a new

has now lost all its gains this year. Umpteen stocks were

and alarming phase of the crisis, which began some eight

suspended today after falling 10% - the maximum allowed

years ago. Global stock markets took a major plunge af-

under Beijing’s rules. Consequently, the Chinese markets

ter China suffered its worst trading session in eight years.

saw globe reeling from the shock. Mohamed El-Erian, for-

Dateline: August 24, 2015: An unprecedented

mer CEO of Pimco, believes the fall in shares has sunk any

collapse in Chinese shares sent tremors through financial

prospect of US interest rates being raised next month.

markets, wiping off billions across the world in a day of frenetic selling and triggering the ugliest day of global trading

A Spin or a Correction

since the depths of the financial crisis eight years ago. The

The Australian Guardian reported that the Chinese

major fall saw the Shanghai composite suffer an 8.5 per

market had more than doubled in value in the 18

cent decline, its worst one-day performance since 2007.

months or so leading up to June. A 30% fall in recent

30 | afroinvestors.com | FALL 2015

ONE BLACK MONDAY:

CHINA SENDS THE WORLD SPINNING By AfroInvestors Research

weeks is not much when measured against a rise of

Angus Nicholson, of IG Markets, has an interesting

150% and you could argue it’s a natural correction.

take on the recent turmoil. He says the recent annu-

The respected Australian economist, Saul Eslake, be-

al meeting of the country’s top leadership must have

lieves the concerns about China, which are reflected in

seen some pretty heavy chat about the economy with

the sell-off there and overseas, are slightly overdone.

the country facing a momentous fork in the road.

Eslake commented that the country’s growing

service industry is gradually overtaking the manufac-

It is a key moment for China. The equity market in free

turing sector as a share of GDP. He also noted that the

fall, the banking system increasingly starved of liquidi-

property market in the biggest cities is “stabilizing” al-

ty, rising capital outflows, and a rapidly slowing economy.

though the smaller cities were “still weak”. And he believed that the recent devaluation of the yuan was not

an attempt to stimulate flagging exports but was a gen-

Beidaihe has ended (one of the reasons Li Keqiang

uine attempt to reform the forex regime and to try to get

was delayed in visiting Tianjin), and no doubt there

ahead of any possible rate cut by the US Fed. It’s a move

were very serious discussions over how the 7% growth

to be more flexible ahead of a Fed rate cut. The yuan is

target is going to be met. That target is now looking

up 20% in trade-weighted terms so they wanted wrig-

overly ambitious, and the most sensible way forward

gle room if the Fed cuts rates and the US dollar rises.

would seemingly involve further currency devalua-

The annual meeting of the top leadership at

FALL 2015 | afroinvestors.com |

31

For an expert analysis of the background Econ-

ing loss of N228 billion at the next days five-hour trading

omists at The Guardian: the duo of Larry Elliott

session. Average decline stood at 2.22 per cent as rela-

and Philip Inman who wrote at the weekend about

tively higher losses by 46 stocks, including the market’s

how concerns about China’s slowing economy will

largest stocks, overwhelmed modest gains by nine stocks.

spread to other emerging markets. Here’s a snippet.

The opening downtrend pushed the negative average

The problem is a relatively simple one. In the

year-to-date return at the Nigerian stock market to -15.71

post-great recession world, the tendency has been for all

per cent. The negative market position appeared to be

countries to try to export their way out of trouble. But

increasing, unnerving the more optimistic investors, low-

this model works only if the exports can find a home, as

ering demand and increasing open-order supply, which

they did when China was growing at double-digit rates.

has virtually turned the market into a discount window.

But in the past 18 months, the Chinese economy has

slowed, causing problems for two distinct groups of

panies on the Nigerian Stock Exchange (NSE) almost

emerging-market economies: the east Asian countries

dropped below its psychological N10 trillion position to

that sell components and finished goods to their big

close at N10.013 trillion as against its opening value of

neighbor, and countries that supply China with the fuel

N10.241 trillion, representing a loss of N228 billion or

and raw materials to keep its industrial machine going.

2.22 per cent. The All Share Index (ASI), the common val-

Aggregate market value of all quoted com-

ue-based index that tracks prices of all quoted equities, So whether it’s a Spin or correction, the current market re-

shrank to 29,214.13 points as against its opening index of

ality is that China’s benchmark index has now lost all of its

29,878.33 points, a day-on-day decline of 2.22 per cent.

yearly gains after a relentless ascent that saw its valuation

Contagion

rise to record levels earlier this year. Asian markets crashed

pean indices, which all suffered record post-crisis

on the news, with Japan’s Nikkei closing down 4.5 per cent

losses. The FTSE 100 dropped 4.7 per cent, wiping

and entering official “correction” territory. Hong Kong’s

£74 billion off its market capitalisation and capping

Hang Seng sanki 5.2 per cent, its steepest sell-off in 30 years.

its worst one-day performance since March 2009.

And the Spin Goes On

quickly

spread

west,

decimating

Euro-

The index staged a minor rebound, having lost

more than £55 billion earlier. Britain’s benchmark index has

Emerging markets, most exposed to a waning Chi-

now collapsed by 17 per cent since hitting a high of 7,104

nese economy, saw their currencies continue an

in April, 2015 and is slipping towards official bear market

abysmal summer rout. Russia’s rouble fell to an

territory, defined as a 20 per cent decline from its peak.

all-time low of 70.74 to the dollar, despite desper-

ate attempts by the Kremlin to prop up its value.

a 5.6pc loss that erased €450bn from the continent’s

In Nigeria, after losing N283 billion within a week

of the Chinese downgrade, equities opened with a whoop-

32 | afroinvestors.com | FALL 2015

Europe’s FTSE EuroFirst300 stocks endured

biggest companies. Italian stocks led the falls, down

atively

6pc, while France’s CAC 40 suffered a 5.4pc de-

world,” said Peter Jankovskis, co-chief investment of-

cline, closing at 4383.46. Germany’s DAX also en-

ficer at OakBrook Investments LLC in Lisle, Illinois.

tered correction territory, bleeding 4.7pc. Panic was

the word at trading. “Stock markets are falling apart

346.07 points, or 2.10 percent, at 16,113.68. The Stand-

at the seams,” said Jasper Lawler at CMC Markets.

ard & Poor’s 500 Index was down 47.72 points, or 2.42

The FTSE Group immediately confirmed that

percent, at 1,923.17. The Nasdaq Composite Index

£73.9bn was wiped off the FTSE 100 as the London stock

was down 94.91 points, or 2.02 percent, at 4,611.13.

market suffered its biggest tumble in over six years as

Oil prices also recovered somewhat after plung-

a result of the fall. A further £13bn was wiped off the

ing to six-and-a-half year lows. Safe-haven US gov-

FTSE 250 index of smaller companies, showing the ex-

ernment and German bonds, as well as the yen

tent of the rout. London based analyst, Baker Tilly Cor-

and the euro, rallied as currency concerns kicked

porate Finance, commented that as capital flight contin-

in

ues and hot money heads for the exit, a possible side

US crude was last down 3.7 per cent at about $38.95

effect is that investors will now be more likely than ever

a barrel after falling as low as $37.75 earlier in the day

to look to make their money work for them elsewhere

and Brent was off 4.2 percent at $43.57 after falling as

– including in the UK. Chinese investors might also be-

low as $42.51 to take it under January’s lows for the first

gin to look for tasty investments outside China and

time. Worries about weaker demand from normally re-

would spend more cash on big infrastructure projects.

source-hungry China added to global supply glut concerns.

strong

compared

to

others

around

the

The Dow Jones industrial average was down

due

to

China’s

recent

currency

devaluation.

The S&P’s energy index was the weakest per-

Fears soon engulfed Wall Street, where the

former with a 2.9 per cent decline in afternoon trading.

Dow Jones lost 1,000 points, minutes after the open-

With serious doubts emerging about the likelihood

ing bell. Pre-market futures trading in the Dow and the

of a US interest rate rise this year, the dollar was

S&P 500 had to be suspended as investors became em-

down 1.5 per cent against other major currencies af-

broiled in a manic sell-off. The Dow later rallied to

ter falling as much as 2.5 per cent earlier in the day.

fall by 2.6 per cent in New York’s afternoon trading.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 5.4 per cent to a more than three-year low.

A key measure of US equity volatility, the CBOE Vola-

Tokyo’s Nikkei ended down 4.6 per cent and Aus-

tility Index, or VIX, shot above the 50 mark for the first

tralian and Indonesian shares hit two-year troughs.

time since 2009 before dropping back to 33 as US in-

London’s FTSE 100, with its large number of glob-

vestors turned their focus back to domestic US issues.

al miners and oil firms, ended down 4.7 per cent for

“With those markets closed, it’s now focused more

its 10th straight decline – its worst run since 2003.

on US fundamentals. The US economy remains rel-

The MSCI all world stock index was off three per cent. FALL 2015 | afroinvestors.com |

33

AfroInv

THE FUTURE O

Connecting Businesses to Investment Opportunities.

Distribution: 62% Financial Services Professionals; 23% Global Business Decision Makers; 15% Investors in Emerging Markets who are active High Net Worth investors, working in Global Markets. 64% of our Readers have invested for at least 10 years. Download a free copy at AfroInvestors.com; View copies at Embassies and Chambers of Commerce in Canada, Ghana and Nigeria.

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Where is the Yuan Heading? Economists at the Guardian believe that there are many reasons why world stocks reacted as they did to the China “FreeFall”. A major reason identified is that of liquidity gap by regulators and incapacity on the part of operators and regulators to predict the market and forestall losses and operational bottlenecks. For instance, analysts could question the reason why the Chinese stocks, which have been heading north, suddenly caught everyone by surprise again. The market reactions point to the question of … what capacity have the regulators to “nip a financial crisis… if it happens again..? Do central bankers really have what it takes to defend their vault? or can they “muster the war chest” required to bridge a major global gap in Cash? The Guardian attempts an answer to our question: “Potential disruption to the iron ore trade; the sudden exposure of the South African rand; the incompatibility of Xi Jinping’s anti-corruption drive with that Wild East entrepreneurial spirit which has powered decades of Chinese growth. Watching panic spread from Shanghai and Shenzhen to London and New York, western analysts grabbed for straws of understanding in unfamiliar fields, reflecting not only a professional need to look as if they know what’s going on, but a psychological yearning to impose order on a wild, mercurial swing in the mood”

There may be no single reason why August 2015 proved

36 | afroinvestors.com | FALL 2015

the moment for the world’s investors to take collective fright about the People’s Republic. What there is however, lurking under all the anxiety, is a single question for governments everywhere. Namely, what’s left in the locker?.....

References: http://money.cnn.com/2015/08/24/investing/china-

About The Author:

world-stock-markets/

AfroInvestors Research Team is a group of young tal-

http://www.theguardian.com/business/live/2015/ aug/24/global-stocks-sell-off-deepens-as-panic-gripsmarkets-live#block-55dac251e4b084894f2229f4

ented entrepreneurs drawn across various professions in the infrastructure, health, and education sector. For all enquiries kindly send your emails to research@ afroinvestors.com

FALL 2015 | afroinvestors.com |

37

COUNTRY FOCUS

REPUBLIC OF GHANA: THE PRIVATE SECTOR AS

DEVELOPMENT PARTNERS

By Elvis Afriyie-Ankrah

For over five decades’ African policy makers after having experimented with different policy options, all come to agree that the pan-

vides essential goods and services, and the revenue for the treasuries of our countries

acea to improving Africa’s economic prospects long-term lie in the pri-

According to the 2011 report of the African Development Bank

Historical and Components Development of The Private Sector in Africa

launched in Arusha, Tanzania, many African countries have come to

Upper Middle of 20th century onwards, in-

realize the critical role that the private sector can play in their quest

dependence in many countries Sub-Saharan

to achieve their total economic and social potential. They view the pri-

Africa, and rise of their own people as their

vate sector as the key engine of inclusive economic growth through

political leaders. They began to experiment

employment generation and prosperity of nations. The sector pro-

with socialist systems where the state is in

vate sector taking a commanding lead in the growing of their economies .

38 | afroinvestors.com | FALL 2015

charge of production goods and services. Prices of goods plummeted on the international market, leading prolonged economic challenges. The Bretton Woods Institutions-World Bank and IMF came to the rescue with their economic bailout packages, leading to changes in policy direction-private sector development; in order to make the state the provider of the enabling environment, and the private sector the main players in the economic system. Private sector in Africa, as in many developing countries is heavy

Issues to Consider Create a Congenial investment climate This means reducing the risks and cost of doing business by securing private property rights, improving governance, simplifying regulations, and promoting competition.

on small and medium sized enterprises and large companies are

Developing the Financial Sector

few. Private sector led economic growth is found to accelerate the

To make the private sector thrive, we must im-

pace of economic transformation and poverty reduction. Support

prove access to finance, and financial literacy,

for Africa’s private sector should be on building the private sector

payment systems, and enhancing creditor rights.

through direct or indirect support for enterprises involved in cre-

We must also strengthen the regulatory and in-

ating employment, and reducing poverty and over 90% of enter-

stitutional frameworks to improve governance

prises in Africa are SMEs (Small, and Medium sized Enterprises).

and competition. The private sector itself can lead a dialogue with government, as it obtains in

Infrastructure and The Private Sector Africa’s infrastructural deficits can be addressed by the private sector. Water, energy, roads, sanitation, telecoms, and transport infrastructures have been improved in some countries on the continent through Public Private sector models, or the private sector solely. For example, the World Bank says, poor infrastructure reduces growth by 2 percentage points each year, cutting productivity by as much as 40% and just $93 billion is needed annually to fund infrastructure needs annually for the next 10years, which is 15% of region’s G.D.P. The private sector in Africa, provides great opportunities for growth and development. The population, geographic size and wealth of natural resources make Africa an at-

Ghana, through the Association of Ghana Industries(AGI), and the Private Enterprise Foundation to discuss tax issues, the policy environment, and work at advocating a better business environment. Development agencies like CIDA(Canadian International Development Agency) can show the way by sharing the experiences of Canada in leading the crusade for a supportive business environment, and help to strengthen the capacity of businesses and business associations to engage public-private dialogues with government

sector investments. We ought to provide the best local and nation-

Private Investment on the Continent

al policy and legal environments for private investments to thrive.

Most multinational companies in Africa are

tractive investment destination and make more room for private

FALL 2015 | afroinvestors.com |

39

owned by large companies from Europe who came to Africa to tap the valuable natural resources on the continent or provide services for entities involved in the exploitation. Most MNC investments on the continent came in the form of Foreign Direct Investment from rich developed countries in Europe. Former colonial masters of Britain, France, and Portugal spearheaded many investments in their former colonies as a way of sustaining their historical ties. Recently, Foreign Direct investments have come from China, India, Brazil, and from sister African countries. These countries have established economic ties that have fostered trade in billions of dollars with Africa every year. For example, Chinese foreign direct investment to Africa rose from US$500million in 2003 to US$15billion in 2012, while bilateral trade upped from US$60billion to US$210 billion in 2013. The largest foreign trading partner with Africa for many years, China’s aid to Africa over the last decade amounted to US$75billion, with more pledges in billions of dollars every year. Public-Private Partnerships are also key.

The trend in many countries in Africa to moot large infra-

structural projects like the building or refurbishment of roads, expansion of water resources, or even investment in strategic sectors through public private partnership. For example, Ghana has run youth skills development initiatives under the PPP model. The collaboration has assisted to train large numbers of young people with skills that have made them self-employed, while a few have been integrated into existing formal organizations. The Nigerian Government has expanded a long stretch of road in Lagos with a private company, and tolled it to pay the cost of the project. As the laws and policies on PPPs need to be developed to give this model the needed weight. The Role of Multilateral Development Partners The International Finance Corporation (IFC) of the World Bank Group has promoted many private sector investments in Ghana, in hotels and tourism, in agriculture, and in large scale infrastructural projects. The African Development Bank has made private sector development one of its Medium Term Strategy for 2008-12. For example, the African Development Bank is supporting regional member countries to: •improve business enabling environments •broaden participation and inclusion in the private sector •support local enterprise development, so as to foster robust employment creation and improve social well-being •encourage social and environment responsibility •sustainability, and •good corporate citizenship in private sector development •Africa’s private sector accounted for more than 80 percent of total production, two-thirds of total investment, and three-fourths of total credit to the economy over the 1996-2008 period. •It was also responsible for 90 percent of formal and informal employment.

40 | afroinvestors.com | FALL 2015

Ghana’s Experience: Economy Overview

Ghana’s economy has been strengthened by over 2 decades

of relatively sound management, a competitive business environment, and sustained reductions in poverty levels. Ghana is well-endowed with natural resources and agriculture accounts for roughly one-quarter of GDP and employs more than half of the workforce, mainly small landholders. The services sector accounts for 50% of GDP. Gold and cocoa production and individual remittances are major sources of foreign exchange. Oil production at Ghana’s offshore Jubilee field began in mid-December, 2010, and is expected to boost economic growth and the estimated oil reserves have jumped to almost 700 million barrels. The country signed a Millennium Challenge Corporation (MCC) Compact in 2006, which aims to assist in transforming the agricultural sector. Ghana opted for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002, and is also benefiting from the Multilateral Debt Relief Initiative that took effect in 2006. In 2009, Ghana signed a three-year Poverty Reduction and Growth Facility with the IMF to improve macroeconomic stability, private sector competitiveness, human resource development, and good governance and civic responsibility. Sound macro-economic management along with higher prices for oil, gold and, cocoa helped sustain high GDP growth in 2008-12, despite the general slowdown in the global economy during that same time period. After independence, the first President Dr. Kwame Nkrumah took the country into socialism, ostensibly to share the wealth among every Ghanaian. Some strategic private sector companies were nationalized, and many import substitution concerns established to provide much needed goods and services for the people of the newly independent country.

After his overthrow, the next democratically elected govern-

ment (the Westminster experiment) led by Prof. K.A. Busia attempted to introduce reforms that encouraged more private sector participation

To make the private sector thrive, we must improve access to finance, and financial literacy, payment systems, and enhancing creditor rights. We must also strengthen the regulatory and institutional frameworks to improve governance and competition.

in the economy. However, the short span of that government disrupted their good intentions at widening the influence of the private sector in Ghana’s economy. After a few years of military adventurism, under the leadership of President Jerry John Rawlings, the country resumed many reforms to give the private sector its place in leading economic development. In the late 1980s to 90s the country, with the assistance of development institutions improved the investment code to make Ghana more investor friendly, undertook massive financial, and legal reforms, making Ghana one of the most attractive business destinations in Africa. Our stable democracy, being the only sub-Saharan African country that has held five peaceful, and successful democratic elections, makes Ghana an inviting environment for the private sector to thrive. Ghana’s GDP rose to 14.4% in 2011, making it one of the fastest growing countries in the world(according to the World Bank). The IMF Forecasts that Ghana’s economy will average a growth of 10% annually by 2018.

FALL 2015 | afroinvestors.com |

41

Challenges in The Development of the Private Sector

terials to improve their prices on the international market.

Although the private sector in African countries faces com-

especially encouraged to partner African governments and

mon challenges, the impact of these constraints varies ac-

share experiences to improve the business climate, remove

cording to the stage of economic development.

all the bottlenecks to business growth, increase funding and

Fundamentally, the constraints include insuf-

ficient transport networks and lack of access to power and finance. Small firms have limited financing, and high cost of finance, insufficient collateral, and the business owner’s limited technical, management and accounting skills as serious drawbacks. For most microenterprises the most severe challenge is access to finance.

The Expected Role of the West The rapidly growing economies, bourgeoning population and expanding middle class, and its wealth in petroleum, precious metals, raw materials, and an edu-

This is one very important way the west can support African economies. Development organizations from the west are

the management acumen to SMEs owners, and perhaps foster strategic alliances across borders for further growth.

Key Recommendations and Conclusions Africa has recognized that the private sector should take the lead in growing the economy inclusively, providing jobs, and reducing poverty. The West through their Development institutions should assist by sharing experiences with Africa in sustaining the gains of the private sector. China has led the way in investing more and in Africa, when other investors saw Africa as problem spot. The Chinese have and still reap phenomenal successes in Africa.

cated youthful population make African countries the most congenial partners in global growth and prosperity. Six of the ten fastest economies in the world are in Sub-Saharan Africa, which boasts a middle class of 350 million people (which is more than the population of the United States of America), according to the IMF. In the new global economy the fortunes of the developed countries of the west are linked to the hugest potentials Africa offers in infrastructural development, mineral resources, precious metals, education, health care, and agriculture. The annual export of the US to Africa valued at US$21billion supports 100,000 American jobs.

By 2020, Africa’s hundred of millions of middle

class consumers of financial services, telecommunications, energy, retail goods, etc. will contribute more than 5 times as much revenue as the natural resources industry. The AGOA(African Growth and Opportunity Act) in 2011 generated a revenue of over US$70billion for Sub-Saharan Africa, but supported over 300,000 American jobs.

Opportunities to Explore There are many opportunities abound in infrastructure, power, energy, petroleum, mineral resources, hotels and tourism, technical and skills training in Ghana.Iin addition mining, oil and gas, infrastructure, and aviation in Congo, etc. opportunities are all over. Public Private Partnerships

About The Author: Elvis Afriyie Ankrah is the Minister of State at the Presidency in Ghana. Ankrah. He is a versatile politician with skills in democratic consolidation, legislative facilitation, regional integration and youth development. His political pupilage was honed when he served as President of the Student Representative Council of the University of Ghana, Legon in the 90s. As a campaign Coordinator for the ruling NDC in 2012, He was Deputy Minister of Ministry of Local Government and until recently Minister of Youth and Sports in Ghana.

are working very well across Africa for huge infrastructural projects, and projects of strategic importance to governments. African countries need the partnership to develop and retool Small and Medium sized enterprises to engage in processing and adding value to local raw maFALL 2015 | afroinvestors.com |

43

COUNTRY FOCUS

THE CHINESE

PHENOMENON

The Wisdom of Chinese Influx into Africa Learning from Japan’s experience, China launched the Forum on China–Africa Cooperation (FOCAC) in 44 African countries in 2000 and sent their foreign ministers and economic ministers to Beijing. Soon, Chinese contractors were winning more than half of the construction contracts funded by other donors. About 42,000 Chinese engineers and skilled workers were working in Africa. The two-way trade between the two regions surpassed the $10 billion mark. By 2005, China’s outward investment in manufacturing exceeded that for mining. By 2006, the China-Africa Development Fund (CADF) had developed a strategy to relocate their more mature factories to 50 special economic cooperation zones offshore in Africa by investing $5 million -$50 million in mid-large projects such as a glass factory in Egypt, a power plant in Ghana, and a chromium plant in Zimbabwe. .

By Olutoyin Oyelade

C

hina’s over-

abroad rather than sim-

certified

seas zones

ply letting them destruct.

were

not

at

the

global

standard

ISO

14000.

The idea that the Chinese always brings over

The Ethiopia zone would

planeloads of their own workers and do not employ

only about

concentrate

textiles

Africans might be wrong and requires further analy-

e x p o r t

and the Zambia zones on

sis. Construction of the famous Tan-Zam railway em-

process-

metal processing while the

ployed 16,000 skilled Chinese, but many tens of thou-

ing; they were to be built

zone near Lusaka concen-

sands of Africans. In the case of the multi-billion dollar

by Chinese enterprises as

trated on electronics. The

infrastructure and copper mining venture in the DRC,

profitable ventures.

at least 80 percent of the workers must be Congolese.

on

Half

Chambishi zone in Zam-

of the expenses for Chi-

bia will, as of 2014, have

nese enterprises moving

45

into the zones were also

and 10 from other coun-

reimbursable.

tries.

This facil-

Chinese

companies

Why the Chinese “Siege”? China deepened its ties with Africa by devel-

The operators of

oping relationships at the local level. Its medical aid to

itated an orderly way to

that zone will have its en-

Africa began in 1963 and, by 2008; there were 1000 Chi-

transfer mature industries

vironmental management

nese medical workers on the continent. Sequel to the

46 | afroinvestors.com | FALL 2015

famous 2006 FOCAC summit, 27 hospitals and 30 an-

workers. Such infrastructure-linked loans have the dual

ti-malaria centers manned by Chinese experts were built.

benefit of supporting Chinese exports while, at the same

In education, Beijing gives over 4000 scholarships

time, developing the host country’s vitally needed infra-

annually to African students. These scholarships cover

structure. Brautigam concludes that “China is now a pow-

the costs of airfare, tuition, housing and a small stipend.

erful force in Africa and the Chinese are not going away.

In return, students incorporate Chinese history, literature

Their embrace of the continent is strategic, planned, long-

and philosophy into their field of study. Under the 2006

term and still unfolding. China’s own experiments have

FOCAC pledge, China will provide short-term training in

raised hundreds of millions of Chinese out of poverty,

Africa to 15,000 Africans over three years including 1500

largely without foreign aid. They are applying the tools

principals and teachers for the schools built by China and

of investment, trade and technology as levers for devel-

1000 doctors and nurses for the hospitals they are build-

opment, not out of altruism, but because of what they

ing in 30 African countries. In Ethiopia, a large training

learnt at home, namely that their own natural resourc-

and vocational education center financed by Chinese Aid

es could be assets for modernization and prosperity”.

and jointly operated by the two countries opened in early 2009. The school will eventually enroll 3000 students.

Where is China “Sitting” In Africa?

China

tional

training

also

builds

centers

in

and

operates

Uganda

and

voca-

The inadequacy of public funds to support Afri-

Angola.

ca’s infrastructure gaps- currently put at an annual $93b

China’s approach to Africa is different from the West.

till year 2020 (AfDB, 2010), is daunting. However, China

While the West focuses on repatriating its proceeds of

is fast becoming a formidable partner in the energy and

natural resources, China using its Resource-Backed Infra-

transport sector in Africa. Having made some giant strides

structure Loans to Africa, acquires resources. Such loans

in East Africa: Angola and Uganda power sector, China’s

are structured such that a loan granted to a country will

investment in West Africa has become quite significant in

be serviced and repaid through the sale of, copper or oil

the last few years in the rail- transport and energy sec-

valued at market prices prevailing on the day of its sale.

tors. Other frontier countries are now taking a cue to tap

China, however, remains in control of the cash of the total

into the China funds –flow, in exchange for resources such

loan amount and will use it, in consultation with the local

as oil or land, to maximize its potential benefits for eco-

government, to build roads, schools and hospitals while

nomic development. These policy-backed initiatives seem

supplying equipment, engineers, doctors and skilled

to be yielding results in some of the countries that have FALL 2015 | afroinvestors.com |

47

these strategies to address the infrastructure deficits

bility of resources at the location” factors are not rated

they face.

since these factors are non-dependent on the coun-

For instance, China has made significant in-

tries; nonetheless these two factors are also critical

road into Africa’s energy sector. Angola and Uganda’s

in selecting the location. A comparison of countries

emergency Power Solution that targeted 1,000 mega-

based on all other factors is described in table 1 below:

watts within its first phase relying on emergency power

The “Doing-business-index” has been developed by the

plants, which later evolved into IPPs demonstrates gov-

World Bank and the IFC based on the factors including:

ernment’s efforts to address these deficits. With an ap-

Ease of obtaining credit, length of time to register a busi-

proximate $5b Infrastructure development fund from

ness or to close a business down, level of protection for

China Development bank, Angola seems to be leading

investors, how enforceable are contracts, payment of

the cohort of African nations in developing the energy,

taxes etc. The index is telling as it describes the level of

real estate and industrial high-rise sectors. About 59%

red tape that an investor may encounter in each country.

funding has been accessed by some African nations un-

der various structures from Chinese affiliated institutions

the highest purchasing power and therefore lead on the

in the last 15 years -including South Africa. China also

economic index. Nigeria leads in terms of potential mar-

currently executes about 35% of Infrastructure Projects

ket size but South Africa / Botswana lead on the busi-

in Africa under different vehicles. Chinese groups ap-

ness environment argument, “Doing-business-index”.

pear to feature more as the single largest investor in Af-

From the above, South Africa and Nigeria have

rica, as of now it owns over 20% of the Standard Bank

Conclusion

Group, the largest banking group in Africa. Is this stra-

tegic? The China Africa trade relationship is booming as

imize its investments opportunities in Africa. Its invest-

well as mutually beneficial (at least from what we see to-

ments have increased in recent years, rising from only

day). IFC (2013) announced a total investment of $1.5 b

USD 1 billion in 2001 to about USD 7.5 billion in 2006

in Nigeria’s power and transport infrastructure from its

(AfDB, 20101). A total of 35 African countries have par-

2012 budget In Nigeria. It developed the Energy Business

ticularly benefited, with about 16% of the resources flow-

Plan with the government to focus on the power sector.

ing into infrastructure. Average allocations of these flows

Next steps: Doing Business In Africa- Whats there to do?

To conclude, China has taken an interest to max-

over the 2001 - 2007 period show that the electricity and transport sub-sectors have benefited most. “It is also noted that the largest recipients of Chinese FDI into infrastructure in Africa are Nigeria, Angola, Sudan and Ethi-

Investment Location

opia. China has also invested in the transport sub-sector

Some of the factors to consider as seletion criteria for

in Nigeria, Gabon and Mauritania” (World Bank, 2009).

investments include but are not limited to: •GDP per capital for the country •Purchase power and size of the middle class •Availability of infrastructure measured by power generation capacity •Political stability, though this is less of a concern in recent years •Ranking on the doing business index •Size of the market •Knowledge of the local market •Language barrier and impact on effective trading

Based on the language factor, English been

the language of international business, the Invcap team have selected the following countries for consideration: South Africa, Ghana, Nigeria, Tanzania, Zambia, Botswana and Kenya. A quick-comparison of what is expected in each of the markets is summarised in a comparison matrix and used as basis for selection of location.

The “knowledge of local market” and “Availa-

48 | afroinvestors.com | FALL 2015

About The Author: Olutoyin Oyelade is the Managing Partner at InVcap and Chairs its Management Investment Committee. She oversees the management of the firm’s private equity funds. Olutoyin serves on the boards of corporations including Casa Foundation and Friends of Africa. She is the Convener of the Friends of Africa Economic Development Summit in Canada. She was Group Executive of Investment Management at Intercontinental Group (IBG) between 2007 and 2009 and managed IBG’s global fund and investment portfolio of $8bn in the UK, Ghana, and Nigeria. She is an MBA graduate of Nigeria’s premier University of Ife, a graduate of Advanced Management at Wharton, and Business Marketing at IMD Business School, Lausanne.

HEALTHCARE

T

here were times when nanotechnology was not more than a chapter from sci-fi novel. Over the years of technological growth and advancements, nanotechnology has evolved as a boon for human beings. Today the entire world is talking about nanotechnology and its impact on the medical industry. It is predicted that the demand for nanomedicines and healthcare products will rise from $53 billion in 2011 to $110 billion in 2016. Nanotechnology involves manipulating properties and structures at the nanoscale, often involving dimensions that are just tiny fractions of the width of a human hair. Nanotechnology is also known as the

science of small materials. It is already being used in cosmetics and sunscreen and it holds the key to improving healthcare, from delivering drugs more effectively to providing better patient care. Nanotechnology medical developments could potentially save a great number of lives across many diseases and illnesses. This is why they National Cancer Institute, USA created the Alliance for Nanotechnology in Cancer in the hope that investments in this branch of nanomedicine could lead to breakthroughs in terms of detecting, diagnosing and treating various forms of cancer. Nanotechnology is already being used from being used in passive structures to active structures, through more targeted drug therapies or ‘smart drugs’. These new drug therapies have already been shown to cause fewer side effects and be more effective than traditional therapies.

Nanotechnology and Cancer

The traditional method for curing cancer is chemotherapy, whereby patients take certain drugs to kill can-

cer cells before they spread. The powerful medicine circulates in the bloodstream and directly damages the cancer cells that are growing and multiplying. Unfortunately, chemotherapy also kills regular cells giving rise to numerous unpleasant side effects. Through the use of magnetic nanoparticles in a miniature sensor, doctors are able to detect

50 | afroinvestors.com | FALL 2015

RECENT ADVANCEMENTS IN HEALTHCARE NANOTECH:

AN ECONOMIC DEVELOPMENT INITIATIVE By Olumide Akintayo

cancer early, increasing the patient’s chance of survival. Sci- trieval while minimizing the risk of damage to the arteries. entists have started using nanotechnology to devise a highly specific method of killing cancer cells. The process in-

Nanotechnology and Brain Disorders

volves inserting nanotubes into cancer cells and exposing Nanotechnology has made it possible for the tissue to laser light, heating up the nanotubes and killing researchers to collect in-depth data on the human the cancer cells while leaving the healthy cells unharmed. brain. Nanoparticles are able to cross the blood

Nanotechnology and Stroke

brain barrier and access the brain’s remote are-

as. This is being used as a useful alternative to diThis principle allows for creation of an MEMS (Mi- agnosing and treating neurodegenerative diseases. cro-Electro-Mechanical Systems) Umbrella-shaped Actuator

that is inserted via catheter into the lower body of a stroke pa-

Nanotechnology and Diagnostics

tient. The operator (in most cases a medical doctor) can control Nanotechnology has the potential to revolutionize the the device through the application of varying electrical signals way medical data is collected. Diagnostic techniques and the location can be monitored with MRI and CAT SCAN based on nanotechnology provide several advantages intechnology. Navigating up and through the arteries, the device cluding complete diagnosis and treatment with just one will ultimately reach the location of the blood clot and proceed visit to the doctor, rather than needing multiple follow-up by applying a fine-tuned shear force to facilitate the separation visits. Another benefit is the accurate and early detection of the blood clot from the wall of the vascular artery due to the of diseases, which allows doctors to potentially stop disshearing-thinning phenomenon, thus enabling complete re- eases before they can cause more damage to the patient.

51 | afroinvestors.com | FALL 2015

Nanomedicine is a large industry, with nanomedicine sales

and injuries from shrapnel, which can benefit from the patch

reaching $6.8 billion in 2004 and with over 200 compa-

version of the treatment. The wound might be sealed by

nies and 38 products worldwide. This is expected to grow

the formation of a biological membrane that is formed over

150 fold by 2015. In addition to the economic impact, the

the eye, which quickly seals the opening by the use of laser.

health benefits as mentioned above also have a positive

The time is not so far away when you will be able to

impact on the economy in reducing healthcare burden.

purchase these hand held devices from pharmacies.

Nanotechnology and Incisions

We could imagine this happening not far from here. It seems to be a part of our healthcare system, im-

A clinical trial was performed on 31 patients

agine the doctors using these devices for even the

that required skin incisions, who were tried out with

smallest and minor wounds that people get in daily life

nano-sutures in lab experiments. Experimentally the nanotech treatment, and the other half with conven-

Nanotechnology: Opportunities for Economic Development

tional sutures. The difference in healing was obvious.

The use of this technology will replace the traditional sutures

Technological advances are often blamed for shrinking the

and staples that were used to repair skin wounds. This pro-

job market, as increasingly efficient and automated pro-

cess uses a dye that coats the open wound and is then left

cesses seemingly reduce employment opportunities. In-

exposed to green light for 2 to 3 minutes. This dye absorbs

deed, while technology lowers the number of repetitive and

the light and then catalyses the molecular bonds that are

physically intense jobs, it creates others that didn’t exist be-

present in between the tissue collagen. These bonds then

fore. This is particularly true in the area of nanotechnology.

create an instant seal that is water tight, for attaching tissues.

It opens the door wide to new employment roles as

incisions were treated one half with the new laser/

Job creation is a top priority of many economies.

highly innovative products emerge. These are ripe for This technology is called Photochemical Tissue Bond-

entrepreneurs and investors to embrace, and to cre-

ing (PTB). This process prevents the risk of infections

ate new jobs and new industries around nanoscale en-

or any inflammation, thus speeding the scar formation.

gineering.From the perspective of the entrepreneur,

The process is a simple method that uses a hand

this means investing more in training scientists and en-

held device about a foot long and a few inches wide.

gineers to translate their discoveries into marketable products; creating incentives that reward entrepreneur-

This can be used to treat the wounds such as eye wounds

52 | afroinvestors.com | FALL 2015

ial risk-taking; removing intellectual property barriers;

developing investment models that support long-term

applications,lead to advances in molecular and cell biology,

innovation; training the nanotechnology workforce; and

make biomedicine more predictive, preventive, personal-

creating an environment where responsible and soci-

ized, and regenerative.

etally responsive innovation is economically attractive. Nanotechnology can also help millions to escape from the poverty trap by providing affordable health diagnosis, preventions and cures, and more targeted fertilizers and pesticides that act only when needed. Technology alone cannot break the self-reinforcing mechanism that causes poverty to persist, but it already offers many ways to get more people into the workforce in countries were illness and hunger are putting many out of work. In simple terms, nanotechnology helps us to be more efficient, and with that will come business opportunities.

Conclusion Recent years have seen an explosion in the number of studies showing the variety of medical applications of nanotechnology and nanomaterials. In this paper, we have glimpsed just a small cross-section of this vast field. However, across the range, there exist considerable challenges on how to secure public confidence that this rapidly expanding technology is safe. Of attempts to investigate the safety of nanomaterials, the National Cancer Institute in the US says there are so many nanoparticles naturally present in the environment that they are “often at order-of-magnitude higher levels than the engineered particles being evaluated”. In many respects, they point out, “most engineered nanoparticles are far less toxic than household cleaning products, insecticides used on family pets, and over-the-

About The Author: Olumide Akintayo is the President of the Pharmaceutical Society of Nigeria (PSN), the body that monitors and regulates pharmacy practice in Nigeria, with a membership of 145,000 professionals. Olumide is a Fellow and Faculty of the West Africa Postgraduate College of Pharmacists (WAPCP), a Fellow of the PSN, and the Nigerian Institute of Management. He serves on several Boards including University College Hospital (UCH), Ibadan; and is now listed in the top “50 Nigerian Professionals” by 3 Nigerian Newspapers: Guardian, ThisDay, and Vanguard, and top “50 ICONs” of University of Ife (now Obafemi Awolowo University) in Nigeria.

counter dandruffremedies,” and that for instance, in their use as carriers of chemotherapeutics in cancer treatment, they are much less toxic than the drugs they carry. By 2020 nanomedicine is expected to: revolutionize healthcare practice, create new diagnostic and therapeutic

FALL 2015 | afroinvestors.com |

53

SOCIAL IMPACT

CASA FOUNDATION

IN THE COMMUNITY Casa Foundation continued with its mandate to improve the living conditions of the needy in our communities. In line with our Mission to alleviate poverty and provide reliefs to the less privileged, Casa Foundation supported various charitable organizations in Canada and Africa through its annual donation events and participated at their various fund raising initiatives.

By Rizalyn Vale CasaFoundation Council The Vision Family Support Services: • FEED a family Program, • TUTOR a Child • Immunize a Child: Support to Families Health and Education Services: Book Drive: • Book donation to Universities and Colleges across Africa • Equipment Donation to Teaching Hospitals International Development Initiatives • Friends of Africa: An Economic Development Conference: Annual • Entrepreneur Development Seminars

56 | afroinvestors.com | FALL 2015

• Youth Engage: Networking event for Emerging leaders

Summary of Activities Canada GTA Donations: Casa Foundation Charities continued with our annual donations provided to our adopted Shelters and Homes for the needy in Greater Toronto Area, Canada. These include: Family Life Resource Centre, Salvation Army in September,. Immunization and Medicare Program: In Lagos, Nigeria, CasaFoundation and its African partners, Culbeat Foundation and RedCross society, Nigeria, held its Immunization and Medicare program for Mothers and Children held to cover the gaps in health care services to children

aged 0-5

Sudan, and other provinces

• Culbeat Foundation, Ni-

and their mothers in De-

of Canada were in attend-

geria

cember, 2014.

ance. Post conference pub-

• Book donation to Uni-

lic and private sector part-

versities and Colleges in

nership meetings held with

Ghana follows.

Entrepreneur

Develop-

ment: Youth and Entrepreneur seminars and B2B sessions held to create

In 2014, Casa Foundation was recognized as a Diasporan Achiever,

representatives of the Government

of

Ontario

awareness of business op-

Canada by

portunities to young entre-

The Diasporan Magazine,

following the FOA Confer-

preneurs to establish ,ex-

a publication of the

ence.

pand or promote their

Nigerian House of

• Friend of Africa Awards:

business ventures within the GTA and in Africa Economic Development:

Representative, as an impactful organization that

and Republic of Ghana

In 2014 the FOA Award went to Dr. Laura Stachel from We Care Solar, USA. She was welcomed into the

The Friends of Africa (FOA)

promotes excellence in

Economic

Canada.

Chair, Casa Foundation Arc.

Conference held on the

The recognition goes to

Olusola Oyelade. The Min-

4th of October of 2014 at

all our volunteers and

ister of State at the

Development

the Grand Ball Room of the Sheraton Hotel and Conference Centre, Toronto. The conference

members who continue to work diligently to fulfill the

FOA Hall of Fame by the

Republic of Ghana Presidency, Hon. Elvis Afriyie Ankrah

presented

the

awards to Laura Stachel.

was chaired by the Minister

core objectives of Casa

of the Presidency, Republic

Foundation– to bring

Annual Donation Events

of Ghana, Hon Elvis Afiyie

economic

in GTA Canada and Afri-

Ankrah.

and social impacts that

ca: September 2014

The

conference

hosted captains of industries from vertical sectors of Private Equity, public

positively develop our communities.

Casa Foundation donations to charitable and non profit organizations continued to

sector, health,

accommodate existing and

and infrastructure. Inves-

new recipients including:

tors

•

and

entrepreneurs

Family

Life

Support-

across vertical sectors from

Center, Canada

the U.S.A, Ghana, Nigeria,

• Salvation Army, Canada

About The Author: Riza is a Senior Research Consultant in Manilla, Philippines where she graduated with a Masters in Development Management. She is a graduate of Lagos Business School’s (Pan African

University)

Management

Senior

Program

and

Business management Studies from Damelin Management College, Pitermaritzburg, South Africa. She was a Senior Executive of Prilla Group in South Africa and Dufil Prima Group in Nigeria. In the Philippines, her research work focuses on social development with particular interests in public sector institutions. Riza consults for foundations and civil Society groups and continues to facilitate community focused programs in Education, Health, and Children’s rights..

FALL 2015 | afroinvestors.com |

57

CASA FOUNDATION

IN PICTURES

2014 Medicare for Mother and Child, Lagos Nigeria

Equipment donated to teaching hospitals

Participants are Friends of Africa Conference

Consular General of Ghana, Kodjo Mawutor presenting FOA Award to Dr. Chambers.

58 | afroinvestors.com | FALL 2015

African DIASPORAN Business Meetings with Hon. Elvis Afriyie Ankrah, Minister of the Presidency, Republic of

Minister of Presidency of Republic of Ghana, welcoming Premier of Ontario Representative, MPP Han Dong

Other guests at the inaugural Healthcare intervention- Equipment Donation to Teaching Hospitals.

FALL 2015 | afroinvestors.com |

59

SOCIAL IMPACT

T

he Chibok issue marks a turning point in the tra-

of other children and the sustainability of

jectory of the African girl-child as we remind the

families.

world that over 270 girls were kidnapped in Nige-

ria by religious extremists over 2 years ago. They have not only been separated from their loved ones and their academic pursuits for which their

parents laboured, their whereabouts is still to be determined.

No form of attack against school

children can be justified and this act must be condemned In clear terms. As part of our objectives to promote the empowerment of women and emerging leaders,

Over 270 school girls were kidnapped over 2 years ago by

Casa Foundation urges all well meaning

armed religious extremists in Chibok, North- Eastern Nigeria. The das-

agencies worldwide- both in the public

tardly act was perpetrated under the guise of securing their school

and private sectors to rise to demand

from the onslaught of local terrorists. Had the girls known that lurk-

the release of these missing girls so that

ing behind the smiling faces, was the terror from which they were to

they can return to complete their edu-

be protected, they would have skipped for cover. But in unassuming

cation and live the meaningful lives they

innocence, they surrendered and watched in terror as their boarding

were destined to live. Extremists must

school was set on fire within the hour. Although the management

not be allowed to rule the land or dictate

of the crisis leaves much to be desired, the whole world must rally

its pace of development and those of its

around the Government of Nigeria at this trying time. Timing is critical

people

60 | afroinvestors.com | FALL 2015

BRING BACK OUR GIRLS

THE CHIBOK THE CHIBOK DILEMMA

DILEMMA

By Rizalyn Vale CasaFoundation Council

By Rizalyn Vale Casa Foundation Council

As we celebrate our women around the world,

the Chibok Dilemma brings to fore an opportunity to rise in support of other women that are weeping at this time. Our prayer is that God in His mercy will grant them the grace and fortitude to stay strong until their dreams return home.

We cannot be quiet in times of calamity. Enough is Enough Speak out today- Demand the release of the “Chibok Girls”.

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61

SOCIAL IMPACT

A Friend Of Africa

MARY ANNE

CHAMBERS

D

r. Mary Anne Chambers served as Minister of Training, Colleges and Universities in the Ontario government after being elected a Member of Provincial Parliament (MPP) for the riding of Scarborough East from 2003 to 2007. Through her leadership, she increased students’ ability to complete their education without un-

due financial hardship and opened doors for financially trained individuals. As Minister of Children and Youth Services, Chambers advocated for the protection of children and youth and spearheaded a number of innovative reform initiatives. Before entering politics, Chambers worked in the private sector, serving as senior vice-president of Scotia bank.

Now the incoming President of PACE (Project for Advance-

ment of Childhood Education), Chambers is also involved in primary schools in Jamaica, from which she emigrated in 1976. She is also a member of the boards of the YMCA of Greater Toronto and the Centre for Addiction and Mental Health (CAMH) and former board member of the Rouge Valley Health System and the University of Toronto’s governing council, on which she served as vice-chair from 1998 to 2001. Chambers is also past chair of the United Way of Greater Toronto and former president of the Canadian Club. She was recently named a YWCA Woman of Distinction for community service.

The philanthropic efforts of Chambers have made a pos-

itive impact on the lives of many students at all levels of education as she has funded more than 30 scholarships for first-year students at Canadian universities and colleges. She has served as a role model for the Black community in Canada, he noted, and is the recipient of 17 different awards, citations and honors’. At UTSC, Chambers funds the Imani Mentorship program for middle and high school students, in partnership with the IMANI Black Students’ Alliance and the Boys’ and Girls’ Club of East Scarborough.

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While serving as a Governor of the University, her work on a task force on student financial support contributed to a policy that guarantees no student will be unable to study at the University of Toronto due to inadequate financial resources.

While serving as a Governor of the University, her work on a task force on student financial support contributed to a policy that guarantees no student will be unable to study at the University of Toronto due to inadequate financial resources. As of 2011, Mary-Anne had personally funded the education of more than 30 students attending Ontario universities and colleges by awarding scholarships to them. She also continues to sponsor early childhood institutions in Jamaica, the country of her birth. She sponsors students and serves as an Advisor for an Academic Mentorship Program for middle and high school students in partnership with the University of Toronto at Scarborough. Mary Anne is being recognized for her contributions to the empowerment, development and education of disadvantaged youths, who through her scholarship programs have been able to access education and pursue their God given dreams. Mary Anne Chambers currently serves on the Board of Governors of the University of Guelph and the Board of Directors of raceKennedy Group Ltd.

Mary Anne has received the following Awards:

A Honorary Doctor of Laws Degrees from the University of Toronto, York University and Lakehead University, a Vice-Chancellor’s Award from the University of the West Indies, a YWCA Woman of Distinction Award, the Queen Elizabeth II Diamond Jubilee Medal, the Golden Jubilee Medal of Queen Elizabeth II, and the Prime Minister of Jamaica’s Medal of Appreciation. Mary Anne majored in Commerce and Political Science for her Hons. B.A. at the University of Toronto and is a Fellow of the Institute of Canadian Bankers, a Chartered Director and a Member of the Institute of Corporate Directors.

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Friends of Africa (FOA) An Economic Development Summit The Friends of Africa (FOA) offers a platform to facilitate collaboration and investment partnerships between infrastructure providers and investors in North America and Africa. The FOA Economic Development Summit hosts participants from the public and private sectors. Through Roundtable discussions, breakfast and informal meetings, the relevant authorities in these sectors are brought together to discuss and proffer solutions to challenges in the real sector of these economies, while providing a robust platform for business ideas and opportunities. The Breakfast and Roundtable Sessions focus on: -Economic and Infrastructure Development discussions -Promoting strong networks and creating partnership opportunities for Entrepre neurs -Facilitating Business mentoring. The Infrastructure and Business Leadership Sessions: Improve knowledge sharing, networking, learning exchanges between business leaders across various verticals. These sessions also provide an opportunity to explore available funding options for business expansion and the growth of the private sector. It offers presentation of development ideas at the One on One sessions with Investors and global decision makers. Business Development Initiatives include: -Steps to Starting new businesses for young entrepreneurs -Discussions with business leaders in the private/public sectors across various professions -Networking event for Emerging leaders: discussing small business development systems -Connects to available funding options to support SME business development initiatives. For additional Information on Speaking, Sponsoring, and Partnership opportunities at Friends of Africa Conferences visit casafoundation.ca/Friends-of-Africa

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www.casafoundation.ca/Friends-of-Africa | foa@casafoundation.ca | 1.866.431.4838