ABCs of Acquiring Investment Capital

1
ABCs of Acquiring Investment Capital

• Facilitation of Foreign Direct Investment into
  Africa

2
FDI Trend Historical Perspective(U.S.
millions)
FDI Equity Capital, Re-invested earnings,
intra-company loans
Source Unctad Handbook of Statistics
3
FDI Trend Historical Perspective(U.S. Millions)
Source Unctad Handbook of Statistics
4
Principal Economic Determinants of FDI

• Level of development
• Market size
• Market growth
• Natural resource endowments
• Enabling framework in host country

5
U.S. initiatives to promote FDI into Africa

• Dissemination of investment information
• Business matchmaking/linkage programs
• Trade missions
• Investment seminars
• Funding of feasibility and sectoral studies
• Technical assistance for project development/
  implementation
• Africa Growth and Opportunities Act (AGOA)

6
Attractive sectors for FDI

• Services sector
• ICT-based
• Off-shore data processing
• Call centers
• IT infrastructure
• Telephony services
• Tourism
• Resorts
• Eco-tourism
• Game reserves
• Cultural/historical sites
• Financial services
• Non-banking financial institutions
• Commercial or Investment banks
• Insurance

7
Attractive sectors for FDI

• Manufacturing
• Value-added products (natural resources-mining,
  petroleum, forestry, agriculture)
• Component assembly (auto and electronics)
• Footwear and apparel
• Pharmaceuticals

8
Various types of investments

• Equity participation (with options)
• Merger/Joint Venture
• Guarantees
• Financial vs. strategic investor