African Investment Landscape

The IMF and other commentators recognise that Sub Saharan Africa ("SSA"), after many years of poor performance has, since 2000, become a region of sustained, attractive economic growth. Better governance, debt relief, improved commodity prices and trade with China has boosted most economies. Despite the global recession, most African economies are expected to continue to deliver positive growth on the back of this historic trend-albeit at a slower pace. The IMF estimates that Africa will be the fastest growing region in 2010, excluding China and India.

The IMF and other commentators recognise that Sub Saharan Africa ("SSA"), after many years of poor performance has, since 2000, become a region of sustained, attractive economic growth. Better governance, debt relief, improved commodity prices and trade with China has boosted most economies. Despite the global recession, most African economies are expected to continue to deliver positive growth on the back of this historic trend-albeit at a slower pace. The IMF estimates that Africa will be the fastest growing region in 2010, excluding China and India.

The banking sector in SSA presents strong investment opportunities as it has significant room to grow and is highly profitable. Moreover, the banking sector in SSA is still immature and typically grows at 3 to 5 times the rate of economic growth. In particular, there is a tremendous unmet demand for financial services at the Missing Middle level. Learn more about our investment focus

Investors

SDG was started in September 2008 with seed capital provided by a commercial investor from the Gulf. Our goal is to provide an attractive return to investors and have a development impact through creating 4 million jobs over 7 years in Africa.

SDG looks to raise capital from both institutional investors and private investors (called Centurion Investors as they invest a minimum of US$100,000) who want to be part of SDG's vision and contribute to economic growth and development in Africa

Investment Strategy

SDG utilises a hands-on private equity model, providing capital and active management support as a strategic investor to African FIs. Key areas of support include strengthening management, improved governance, building performance, culture, cost reduction and efficiency improvement, improved risk management, new product development, establishing innovative distribution channels, and acquisitions.

SDG looks to take significant stakes in suitable FIs, either on its own balance sheet or in combination with co-investors so that ultimately it aggregates its investments and delivers control. SDG has built up a pipeline of potetnial investments with an investment value of more that US$270 million and total assets over US$2 billion. Learn more about our investment approach

SDG group makes investments in the following companies

  •  Private Banks, that want to develop a strategic focus on missing middle markets.
  •  Mortgage companies, leasing companies and microfinance banks that want to "scale up"
  •  Government Banks looking for a strategic partner
  •  Service providers to the financial sector e.g. in providing innovative distribution channels

Please contact us if you want more information.