A billion dollars to invest in Africa

first_img19 June 2015Afro pessimists step aside, because the big leagues are bringing their green bucks to Africa.That’s the message from TPG Growth and Satya Capital, which announced a billion- dollar investment partnership in Africa on 18 June.The partnership is TPG’s first African-focused investment vehicle. It will invest in growth stage companies and the next generation of entrepreneurs across the continent.Satya managing partner Moez Daya said the partners were looking for entrepreneurial partnerships “north of the Limpopo River” and which could benefit South African businesses.“The growth of the consumer face middle class is greater in sub-Saharan Africa,” he said. “South African growth is a lot more constrained. Growth beyond South Africa is faster, but more risky.“The business we do is partnering great companies, those who are breaking through the [Limpopo] border. We will be the ideal partners for South African companies wanting to do that. We bring capital, tools, know-how and the relationships that we’ve built across Africa.”Big investmentSatya Capital was started by Sudanese-British billionaire Mo Ibrahim, who sold his African-based mobile communication company Celtel for $3.4-billion (about R42- billion) in 2005.TPG, the global private investment firm, has $74-billion of assets under its management, while TPG Growth, its middle market and growth equity investment platform, has $7-billion. The latter’s current and past investments represent a mix of disruptive and innovative companies across tech, retail and entertainment including Uber, Airbnb, Box, Domo, Beautycounter, Ride, Angie’s Artisan Treats, Fender, SurveyMonkey, Evolution Media and STX Entertainment, among others.The partnership is TPG’s first African-focused investment vehicle. It will invest in growth stage companies and the next generation of entrepreneurs across the continent.The partnership with Satya Capital, an independent investment firm focused on Africa, brought deep regional expertise, relationships and on-the-ground experience, said Daya.Growth focusThe money will be provided by TPG Growth, which will look for companies and entrepreneurs in all sectors that are in need of capital to help them grow, including in health care, technology, media and telecommunications, consumer and financial services.While Satya normally targeted investments of between $20-million and $150- million, this partnership would allow it to broaden the scope to between $1-million and $200-million, said Daya.“It is exciting for African entrepreneurs looking for investors,” he said. “TPG is willing to invest up to $1-billion in Africa provided it is the right company. They are not bound by geography, but go where the opportunity is. However, this partnership allows them to focus more on the growth in Africa.”Daya, the former chief executive of Celtel International, said that business was a “landmark opportunity and company” for Satya Capital. “We’ve [Satya] been operating for seven years in Africa and built a portfolio of companies.”Satya Capital, which has capitalised $300-million in Africa, focused on an evergreen model. “That means we keep recycling the money within a company instead of withdrawing our investment,” he explained. “We invest in companies without a strict limit on when to leave, which gives businesses the ability to realise their full potential and brings stability,” he said, adding that the partnership with TPG was not part of his group’s evergreen strategy.Africa riskDaya said the risk of doing business in Africa had micro and macro elements.“There is a risk who you do business with and who you partner with, which is something we factor in,” he said.“South Africans are used to working in private equity, but that is not the case in sub-Saharan Africa. A lot of businesses are used to the old way of doing business, but they need to start looking to the new way. It’s a challenge for them and that’s the execution risk.“Then there is the risk of economy and infrastructure and political risk that goes with doing business in sub-Saharan Africa,” he said. “You also have depreciation issues, but the underlying growth exceeds most of those risks.”Source: News24Wirelast_img read more

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Corn bearish, soybeans bullish

first_imgShare Facebook Twitter Google + LinkedIn Pinterest By Doug Tenney, Leist MercantileShock and awe with acres numbers today. Corn bearish, soybeans bullish. USDA did it again, it’s called a surprise!At a time when traders, producers, and end users are starving for information on acres and yield, today’s acres report falls far short. There is a vast amount of irony today due to what many have expected and what the numbers should reveal but likely won’t.The corn acres were 91.7 million acres while soybean acres were 80 million acres. Shortly after the report corn was down 11 cents, soybeans were up 12 cents.Shortly before the report, corn was up 2 cents, soybeans up 4 cents, wheat up 1 cent. The average corn acres estimate was 86.7 million acres with a range of 82 to 89.8 million acres. The average trade estimate for soybean acres was 84.4 million acres with a range of 81 to 86.5 million acres.The most attention today will focus primarily with corn. For weeks since mid-May there has intense focus on the lack of corn planting progress. Print and digital media have bombarded producers with literally a cascade of articles detailing prevent planting payment calculations and the author’s recommendations. USDA stopped collecting farmers’ surveys of acres planted and or their intentions to plant before many had made final decisions to not plant corn and soybeans. Those decisions to not plant were made June 10 and after.While Ohio leads the Midwest with the lack of planting progress on June 24 for corn and soybeans among the top eight U.S. states for corn and soybean production, don’t pin your hopes and 2019 gross revenues on this fact leading the market higher. Closer examination for 2018 US corn production reveals Ohio was 8th in corn production with 617 million bushels. Total U.S. corn production in 2018 was 14.4 billion bushels with Ohio producing 4.2% of the nation’s corn. Ranking the top 10 states in 2018 US corn production would be — Iowa, Illinois, Nebraska, Minnesota, Indiana, South Dakota, Ohio, Wisconsin, and Missouri.Without question the corn and soybean rally since mid-May has been solely a supply driven rally. Corn has pulled corn and soybeans along for the ride. Supply driven rallies are extremely volatile and difficult to navigate. A bull needs to be fed every day. The same can be said for a bull market.The weather with numerous weeks of rains and lack of sunshine resulted in week after week of planting delays. As the delays mounted the number of acres of corn not planted grew as well. Trader estimates were all over the spectrum as they pegged corn prevented planted acres anywhere from 4.5 million acres to as 12 million acres. It is still a moving target. It will likely be the Aug. 12 report when more is known on actual U.S. corn and soybean acres.The market drifted lower for weeks this spring.  The U.S./China trade talks which so many producers had pinned their hopes for a better 2019, collapsed when an agreement nor its signing date never materialized. The addition of a bearish March grain stocks report led some to believe U.S. corn production in 2018 may be have been larger than first reported. In addition,  monthly WASDE (supply and demand) reports this spring had less corn being fed to livestock. This number was inconsistent compared to past years. The news cycle was dominated with negative news. Within days, the start of a spring rally never imagined by producers was in its infancy.Weather will be a key factor in July. Hot and dry is typically bullish. Cool and wet is typically associated with the adage “rain makes grain.” More grain is bearish for prices. However, this summer cool and wet is likely to not be bearish most of the time.In case you have not come to this conclusion, put a few more notches in your seat belt. Buckle up.last_img read more

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Police probe Pulwama boy’s death as family blames forces

first_imgThe police have started an inquiry into the death of a minor boy from Pulwama, who allegedly committed suicide hours after his “brief detention and beating” by the Army in the wake of a grenade blast in the area.“It’s a case of suicide; we have started an inquest proceeding,” said Superintendent of Police, Pulwama, Chandan Kohli. “The matter was taken up with the Army after the family’s allegations. However, the Army has denied any such incident,” he added.The victim, Yawar Ahmad Bhat, who the family said was just 15 and a Class 10 student, “apparently consumed rat poison” on the evening of September 17 at his home in Chandgam area.“Yawar was picked up by the Army during the day when he was on the way to Pulwama town,” said the victim’s uncle Gulzar Ahmad Bhat. “His identity card was also snatched. The previous night there was a grenade attack on the security forces in Pulwama’s Tahab area. Yawar consumed poison on Tuesday evening and breathed his last on September 19,” he added.“He was weak at heart,” said the victim’s cousin Rayees Ahmad Bhat. “He was fearful that he would have to visit the Army camp again for his identity card,” Mr. Bhat claimed. “In fact, when we shifted him to the District Police Hospital, Pulwama, the doctors enquired if he has any history of physical trauma, as his kidneys were also damaged,” he added.An Army spokesman asserted that the family’s allegations were “completely baseless”. “The boy was neither detained nor tortured in any manner.”last_img read more

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