The South Africa operation will act as a conduit for South African companies to invest in the rest of Sub-Saharan Africa, where Renaissance Capital has a unique franchise spanning the region including full-fledged offices in five countries. The South African operation will focus primarily on four sectors: metals & mining, oil & gas, financials and telecommunications.

“Our goal is not to be all things to all people. The focus on these four industries builds on our existing emerging markets platform in these sectors across research, sales and trading, capital markets and M&A. They are also where we see the strongest demand from clients,” said Andy Lowe, Renaissance Capital CEO Africa. “With the addition of a South Africa operation, we now have an unrivaled pan-African investment banking franchise.”

“In Cliff, we have one of South Africa’s most respected investment bankers with deep corporate relationships and unrivaled specialist knowledge of African equities,” said Nick Andrews, Global Head of Equities.

Clifford Sacks joined Merrill Lynch in 1998. In 2006 he was named Co-CEO of the firm’s Africa operations, responsible for the firm’s Markets business across all products and geographies. Prior to joining Merrill, Sacks established the South African sales and trading desk for UBS Warburg in New York. He started his career in 1990 in the Treasury of the Anglo-American Corporation. Sacks is a graduate of the University of The Witwatersrand in Johannesburg. His appointment with Renaissance Capital is effective March 1, 2010.

Renaissance Capital entered Africa in 2007, and today maintains offices in Nigeria, Kenya, Zimbabwe, Zambia and Ghana. Last year Renaissance Capital was one of the most active dealmakers on the continent, executing 18 transactions in 10 countries including the $955 million sale of Central African Mining and Exploration Co. (CAMEC) and equity offerings for Sierra Leone’s African Minerals and Cameroon’s Sundance Resources. Earlier this month, the firm hired Ali Khalpey as Managing Director and Head of African Sales.

Malawi’s excellent climate favours the growing of a wide range of fruits including pineapples, tangerines, mangoes, bananas and avocados. However, there is limited fruit concentrate processing, leaving large volumes of these crops to waste during their respective harvest seasons.

The existing small-scale local companies process a very limited amount of fruit juice, and consequently, the bulk of juices retailed are made from imported fruit juice concentrate.

Investment opportunities

1) Fruit juice concentrate processing plant in the southern region of Malawi

2) Fruit processing: Jams, dried fruit and canned fruit

3) Partnerships with international fair trade businesses, specialising in small-holder grown tropical fruit products

4) The country has not also fully exploited the production of fruits under irrigation, and of the 400,000 hectares of land suitable for irrigation, only 14,000 hectares is under small-holder farmer irrigation and 48,000 under estate irrigation.

Market: There is an existing domestic market and potential for export.

Incentives: These are general and include 100% investment allowance on qualifying expenditure for new buildings and machinery, 50% allowance for qualifying training costs and allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to start of business. Potential investors however have access to additional horticulture sector specific incentives.

For more information on this opportunity and sector specific incentives contact the Malawi Investment Promotion Agency (MIPA).

Contact person: Noel G. Lihiku
Planning and Research Manager

The wells Nzanza-1 and Cinguvu-1 are located around 350 km northwest of Luanda, in a water depth of some 1.400 meters.

During production test, the Nzanza-1 well produced oil with a density of 18 API gravity at rates above 1,600 barrels/day. At Cinguvu-1, the production test reached a maximum flow of 6,400 barrels/day of oil with a density of 23 API gravity.

The other partners are Sonangol P&P (15%), SSI Fifteen Limited (20%), Total (15%), Falcon Oil Holding Angola AS (5%), and Statoil Angola Block 15/06 AS (5%).

Nzanza-1 and Cinguvu-1 results follow the success of Cabaça Norte-1 reaching a count of three consecutive oil discoveries in the block in 2009, and five in total, including Sangos and N’Goma drilled by Block 15/06 partnership in 2008. Additional exploratory wells will be drilled in Block 15/06 yet this year.

Angola is already Africa’s largest oil producer.

Ayisi Makatiani

Mr. Makatiani, is perhaps best known as co-founder of one of Africa’s first and biggest Internet service providers, Africa Online.  Ayisi was born in western Kenya to middle class parents.  He was eventually sent to the U.S. for college.  It was there at the Ivy League Massachusetts Institute of Technology (MIT) that he started an online mailing list with some Kenyan friends to keep each other updated on their social plans. The mailing list developed into a key news source for Kenyans living in the U.S.  When he returned to Kenya he and his partner turned the company into a multinational Internet Service Provider.  Africa Online eventually grew into an eight country operation.

Ayisi sold most of his shares to European owned African Lakes Corporation PLC and stepped down as CEO of Africa Online in 2000, reportedly retaining a stake in the company worth about $10 million.  It was at this stage in his life that he took the leap from entrepreneur to investor.  He and his new partners set out to raise 300m rand ($44 million) to launch Gallium, a private-equity fund for the Africa region.  Unfortunately, they were unable to raise enough money.  It was while he was soliciting funds from the World Bank that they recruited him to run AMSCO.  Ayisi, a well respected manager across Africa with experience serving on numerous boards would lead the IFC organization for several years before leaving to start his own East African Equity Fund Fanisi Capital Ltd.

Since 2005, Ayisi Makatiani has been an adviser to the President of the Republic of Kenya, as a member of the National Economic and Social Council (NESC). He currently sits on the boards of Kenya Airways and Ogilvy & Mather (East Africa).  Makatiani has in the past been adviser to the UN Secretary General (Kofi Annan on ICT) and been on the board of Barclays Bank, Kenya, and on the advisory board of International Chamber of Commerce (ICC) E-Magazine, Paris, France; as well as been a former executive director of African Lakes Corporation PLC - London Stock Exchange listed.

Mr. Makatiani has been featured in The Economist, Fortune (magazine), CNN, NHK, BBC, Financial Times (London) and has been voted several times by his peers as the most respected CEO in East Africa granting him the status of both a Global Leader for Tomorrow and Young Global Leader at the World Economic Forum.

“Supporting the growth of smaller businesses is a major focus of IFC’s work in Africa. The launch of Business Edge in Cameroon underlines IFC’s commitment to supporting private sector growth in the country,” said IFC Country Manager for Cameroon, Henri E. Rabarijohn.

IFC has partnered with six consulting firms in Cameroon to deliver Business Edge training to businessmen and women. These partners are: Africa Audit Council (AAC), and Business Management Solutions (BMS), Diversity Management and Consulting (DMC), PANESS Conseil, FIDA Conseil et Cible.

IFC has already certified 15 trainers to deliver Business Edge training in Cameroon, where small businesses dominate the private sector, but often struggle to obtain the support they need to grow.

IFC’s strategy in Cameroon includes increasing support to the small and medium-sized business sector; improving the business climate; and supporting direct investments in key sectors such as energy and infrastructure.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. It is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries.

In each case, the new listing will be subject to ABG fulfilling all of the listing requirements of the London Stock Exchange and the Dar es Salaam Stock Exchange as applicable.

African Barrick Gold will hold Barrick’s African gold mines and exploration properties. ABG will offer approximately 25%(12) of its equity in an IPO and Barrick will retain the remaining interest.

The pricing and terms are yet to be determined; however, the offering is expected to be priced in late March, with closing expected to occur by the end of March.

ABG is expected to have an initial cash balance of $0.28 billion and the net offering proceeds will be paid to Barrick.

This return of capital to Barrick is expected to provide increased financial capacity to fund the Company’s pipeline of development projects.

African Barrick Gold is expected to produce approximately 800,000-850,000 ounces in 2010 and had total reserves of 16.8 million ounces(3) (100% basis) as of December 31, 2009.

“As an Africa-focused public company, we believe that the new company will be better positioned to generate shareholder value from its operating platform. African Barrick Gold’s range of growth options and ability to finance those options will be expanded and the intensity with which these options will be pursued will be improved and will be driven by an incentivized management team, guided by an experienced Board of Directors. In addition, we expect that listing on the Dar es Salaam Stock Exchange will enhance the profile of the new company in Tanzania and allow for local participation in this national champion.” said Barrick’s President and CEO, Aaron Regent.

Governments, Investors and developers have embraced the possibilities.  While there are many technology initiatives across Africa, iHub - Nairobi’s Innovation Hub for the Kenyan technology community is the latest to receive significant funding from a non-government source.  iHub is described as an open space for tech savvy youth, investors, tech companies and hackers.  It’s a physical facility that is built to attract young entrepreneurs, web and mobile phone programmers and designers.   

Perhaps, Africa’s closest comparison to this space is Busy Internet based in Accra, Ghana.  Busy Internet opened as an internet café with facilities that were designed to be a business incubator, essentially increasing the number of start up success stories in Ghana.  The project received funding from the World Bank’s InfoDev and is still operational.  However, unlike Busy Internet, iHub is free to members and is purely designed for the tech community. 

The iHub will provide data connectivity at 10Mbs and an atmosphere that is conducive to techies being productive.  They will also provide special access to the entrepreneurs and startups who need space to meet with VCs, seed funders and local businesses.  According to their website, they’re trying ‘to create the place where seeds are planted and are easily found by the people with money to help them grow.’

The project is currently being driven by an advisory group made up of individuals who have been pioneers in the Nairobi Tech space. This advisory group includes the following people:

• Riyaz Bachani, CTO of Wananchi
• Josiah Mugambi, Co-Founder of Skunkworks
• Rebeccah Wanjiku, Tech reporter and entrepreneur
• Conrad Akunga, Blogger and Software Manager
• Erik Hersman (me), Tech blogger, Founder of AfriGadget and co-Founder of Ushahidi

The space was made possible by funding to Ushahidi by the Omidyar Network and Hivos. Ushahidi covers the lease, electricity and data connections.

The Kenyan Government is working hard through its Ministry of Information and ICT Board to position Kenya as ‘Africa’s Silicon Alley.’  They aren’t alone as countries like Rwanda who have added computer training to their K-12 Curriculum, and South Africa that already boasts over 5 million internet users and a vastly improved infrastructure ahead of the 2010 FIFA World Cup.  However, the ultimate source of the title might lie with ideas and products that are born out of creative spaces like Busy Internet in Ghana and iHub in Kenya.  The Jury is still out.

The Google Africa account will be managed locally by teams in the six countries, with strategic direction from South Africa and support from Kenya and London. The account is led by Africapractice corporate comms director Alison Merifield.

“PR is going to form a critical element of driving Google’s business in Africa,” said Stefano Hesse, Google Africa’s head of corporate communications and public policy. “Africapractice is perfectly positioned to work with a multinational organisation like Google, with in-depth knowledge of the local markets, coupled with the international perspective and quality of service that we also demand.”

Google already plays a role in the ICT sector in Africa, working in partnership with governments, developer communities, learning institutions and students. The company also recently launched local versions of Google Maps and StreetView in Kenya and South Africa.