Seeds of Opportunity: The African Growth Series
June 2023 | Issue 4
In this week's issue, you will learn more about:
- AFRICA OPPORTUNITY: Africa’s Role in the Battery Value Chain
- AFRICA TREND: Tech Investments Propel African PE to Record Highs
- UPCOMING EVENT: IFAT Africa 2023
- UPCOMING EVENT: The African Continental Free Trade Area (AfCFTA) Conference 2023
- UPCOMING EVENT: Transport Evolution Africa Awards
AFRICA OPPORTUNITY: Africa’s Role in the Battery Value Chain
As countries worldwide strive to reduce carbon emissions and transition to sustainable energy solutions, the demand for batteries has surged exponentially. These batteries are essential for powering electric vehicles and storing renewable energy generated from sources like solar and wind. The global increase in demand for batteries, driven by the rapid adoption of electric vehicles (EVs) and clean energy storage technologies, has created a significant opportunity for Africa. Africa has some of the largest reserves of critical metals essential for battery production, such as cobalt, platinum, lithium, nickel, and rare earth metals. Africa has the potential to fill the gap left by the reduced supply of metals from Russia, given the global geopolitical tensions caused by the Russo-Ukrainian conflict. This presents a unique opportunity for the continent to go beyond being a mere supplier and become more involved in the entire battery manufacturing value chain. Beyond simply extracting and exporting these metals, African countries can establish battery manufacturing facilities, enabling them to retain more value within their economies. This would lead to job creation, technology transfer, and increased regional investment, fostering socioeconomic development. Establishing African-based battery manufacturing capabilities can help diversify the supply chain, reducing the dependence on specific regions and promoting a more balanced and sustainable distribution of resources, ultimately contributing to a more sustainable and equitable global battery supply chain.
AFRICA TREND: Tech Investments Propel African PE to Record Highs
In a milestone year for African private capital markets, 2022 saw a 46% year-over-year (YoY) increase in deals, amassing a robust US$ 7.6 billion in private capital across 626 transactions. Remarkably, Africa stood as the only global market to achieve growth in both deal count and invested capital. Mid-market and larger-sized deals drove this activity, resulting in the second-highest private capital investment of the past decade. Despite a 54% YoY decrease in the fundraising value, 2022 witnessed a greater number of funds raising capital, particularly between US$100 million and US$250 million. Tech investments secured the lion's share, bolstered by Venture Capital, which accounted for 74% of the total deal volume. This was driven by regulatory reforms promoting a borderless ecosystem, protecting intellectual property rights, fostering innovation and boosting investor confidence. Across the regions, West Africa, led by Nigeria, dominated the deal volume, while South Africa reversed its investment decline, and North Africa almost doubled its investment value from the previous year. The financial sector, benefiting from the borderless approach and tech, accounted for 29% of deal volume and 32% of deal value, marking 2022 with a record-breaking 82 successful exits amidst challenging global economic conditions.
UPCOMING EVENT: IFAT Africa 2023
Frost & Sullivan Africa is excited to partner with IFAT Africa 2023, taking place from 5-7 July (Gallagher Convention Centre, JHB).
As a Supporting Partner, we will host a 1-hour panel discussion titled ''Water Infrastructure in South Africa: Avoiding a Crisis''.
Join moderator Yaa (Agyare - Dwomoh) Ngonyama (Consultant, Frost & Sullivan Africa) and expert speakers Gareth Schenck (COO, Impact Water Solutions), Benoit Le Roy (Operations Director, Nexus Water Alchemy), Prof Anja du Plessis (UNISA), Samista Jugwanth (Technical Director, Zutari), Jeevan Samuel (Technical Lead, ExploreAI) and Stanley Steenkamp (CEO, Veolia Services Southern Africa) on 7 July at 11h45.
Their discussion will cover the following:
• Issues we are already seeing in SA today
• What has brought about these issues?
• Infrastructure Investment requirements
• What additional action is required to alleviate some of these water issues
Register here and see you at IFAT Africa 2023 - https://lnkd.in/dZ5qjHcD
UPCOMING EVENT: The African Continental Free Trade Area (AfCFTA) Conference 2023
A week to go before The African Continental Free Trade Area (AfCFTA) Conference 2023 kicks off at the CTICC, in Cape Town, South Africa.
Join Research Director for Frost & Sullivan Africa, Craig Parker, on 29 June at 09h00 as he presents on ''Logistics Infrastructure is the Cornerstone to Sustainable African Trade''.
Register and get your ticket today: https://lnkd.in/dXwUnEtm.
For further inquiries, please get in touch with Mr. Mlambo on +2721 556 9253, alternatively WhatsApp on +2779 013 7629.
UPCOMING EVENT: Transport Evolution Africa Awards
As part of the Transport Evolution Africa Forum & Expo, the Women in Transport Awards has evolved into the Transport Evolution Africa Awards. Running in Durban on 21 September 2023, the awards will bring together Africa’s most renowned transport industry professionals, many of them longstanding attendees of the Transport Evolution Africa Forum & Expo.
This platform will recognise, reward and celebrate the success of trailblazers who are transforming the transport sector, as well as those who have made a significant impact in terms of driving enterprise development, sustainability, and inclusivity.
Looking for more information or have a nominee in mind? Click the link below to learn more about the Awards and to submit your entry - https://lnkd.in/eEdGqBqk
Please note: Nominations close on 31 July 2023.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
