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African Emerging Market Investment Platform Debuts

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  • African Emerging Market Investment Platform Debuts

High profile business leaders will connect investors to investment opportunities with transformational potential Investors to benefit from their combined Pan-African know how and experience.

New African Capital Partners (NACP), Tuesday, announced the launch of its Pan-African investment platform focused on equity investments, trade finance and corporate finance in Africa, as well as the provision of financial advisory services.

NACP is a distinctively Pan-African entity, offering investors the combined benefits of the co-founders’ decades of experience, in-depth knowledge of African business, sectors and economies, as well as their independent thinking and networks in Africa and Asia.

Co-Founder and Chief Executive Officer, NACP, Charles Kie, said: “NACP’s founders share a common dream of a prosperous Africa, built with African human resources and African expertise. We’ve realised that there have been many years of discussions about how to drive the growth of African businesses, economies and trade, but that in reality very little has been done to execute some of the ideas and proposals generated to transform Africa into its rightful role as a global powerhouse.

“At NACP we will be focusing our investments on industries that can build sustainable economic growth pan-Africa, and particularly those that foster regional integration. Our ethos is to drive the value creation in our investments by leading their long-term transformation, and we will be co-investing in them alongside African-focused institutions.”

Also, Co-Founder at NACP, Paulo Gomes, said: “We are Africans, who know Africa intimately, and we have launched NACP with the firm intent of becoming the premier platform providing investment opportunities in companies that trade intra-Africa and between Africa and Asia.

We are mapping and analysing specific industries, ecosystems and the companies to pinpoint those that have the growth potential to become the African Champions of tomorrow.

“For example, we intend to support the emergence of a multinational pan-African financial services platform built around the highest standards of the industry. Institutional investors can benefit from our unrivalled entrepreneurial acumen, hands-on business experience, turnaround expertise, on-the-ground know how and high-level contacts, which will be channelled into securing transformative investment opportunities, offering superior returns whilst making a real impact on African trade and development.”

Honed by years of assessing and guiding commercial organisations in multiple sectors across the African continent, as well as understanding the need for responsible investment, the founders are identifying the growth prospects of tomorrow. Their philosophy includes rigorous screening for commercial viability, a hands-on management approach with investees and the independent thinking to leverage positive impact from investments.

The initial focus is on investing in small and medium-sized as well as large, existing brands in the financial services sector – including in digital transformation – in Africa. They will also be introducing compelling investment opportunities bringing together key investors for a series of high-ticket transactions.

As turnaround experts they will uncover undervalued companies that can be transformed into greater profitability and impact. The team takes great care and places emphasis in selecting the right people to lead turnaround opportunities and all investments will be closely monitored by NACP’s leadership team. NACP looks set to be the team to follow for locating high growth investment opportunities in the Africa.

NACP will also offer financial advisory services including trade finance, fund raising, business organisation/reorganisation and investment advice. It will also be assisting governments to implement innovative schemes to raise funds, and spearheading market-led funding schemes for infrastructure projects in Africa, including Green Bonds.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper

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flour mills posts 184% increase in PAT

Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.

This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.

Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.

The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.

FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.

The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.

He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.

Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.

In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.

The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.

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African Airlines Projected to Cut Losses to $400m in 2024, Says IATA

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Ethiopian AIrlines

The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.

The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.

IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.

The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.

Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.

Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.

IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.

However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.

He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.

Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.

Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.

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SpaceX Explores $175 Billion Valuation in Insider Share Sale Talks

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SpaceX- Investors King

Elon Musk’s SpaceX is reportedly in discussions about initiating a tender offer that values the aerospace manufacturer and space transportation company at $175 billion or more.

According to insiders familiar with the matter, the most valuable US startup is contemplating a tender offer ranging between $500 million and $750 million.

Sources suggest that SpaceX is evaluating the possibility of offering shares at approximately $95 per share, with the terms and size of the tender offer subject to change based on the level of interest from potential insider sellers and buyers.

If the $175 billion valuation is realized, it would mark a notable increase from the $150 billion valuation obtained through a tender offer earlier this summer.

This elevated valuation would position SpaceX among the world’s 75 largest companies by market capitalization, comparable to industry giants such as T-Mobile USA Inc., Nike Inc., and China Mobile.

SpaceX, known formally as Space Exploration Technologies Corp., dominates the commercial space launch services market with its Falcon rockets and operates the Starlink service, which provides internet from space via a growing constellation of satellites in low-Earth orbit.

With anticipated revenues of about $9 billion in 2023, projected to rise to approximately $15 billion in 2024, SpaceX’s strategic moves, including a potential initial public offering for Starlink, underscore the company’s ambitious plans and strong market position.

Representatives for SpaceX have not yet responded to requests for comment on these recent developments.

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