African Investment Landscape

"The growth potential in Africa is tremendous - and many of the long term barriers to growth are receding. As a result, the financial services sector in Africa now offers banks and insurers an unparalleled opportunity to participate in a growth story that goes beyond profits.....The decisions that companies take now with regard to Africa will shape their future ability to participate in the continent's rapid expansion over the coming years." Accenture, June 2011

The IMF and other commentators recognise that Sub Saharan Africa ("SSA"), since 2000, has 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. The IMF estimates that most African countries will grow by an average of 5-6% per annum in the next five years.

The banking sector in SSA presents strong investment opportunities. In fact, Accenture research shows that the financial services markets in several African countries are already well established or near the tipping point of rapid growth. Those financial services companies that seize the moment in Africa will establish a lasting competitive advantage in these promising markets. 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 1.4 million jobs over 10 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 targets small and mid-size commercial banks. 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 potential investments with an investment value of more than US$300 million and total assets over US$3 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.