Herewith my May 2009 article for The Business Diary, a monthly Botswana-centered finance periodical that also highlights and features commentary on economic happenings around the SADC region.
I’ll begin posting my contributions shortly after they appear both in print and online. June’s article features an in-depth look at the emergence of private equity in various African countries and sectors. Doing research for the piece opened my eyes to just how sizable PE is becoming in Africa as a whole, a trend that certainly runs contrary to some quotes that I’ve read from some fund managers who are (incorrectly, in my mind) discounting the current demand for risk premia that only Africa can offer. And while Financial Times noted recently that general partners as a whole are having trouble raising new funds, given the robustness in particular of the secondary market, that dilemma need not necessarily apply to emerging and frontier market-oriented firms given the relative lack of retail and wholesale leverage in such regions. In essence, while foreign investment may be fleeing developing markets, economies there are more resilient right now than in the developed world because domestic demand is sturdier.