April 11, 2019 07:30PM / Press Release
Renaissance Capital, a leading emerging and frontier markets investment bank, held its North Africa Investor Conference between 9th and 10th April 2019 in Cape Town, South Africa.
The conference was attended by Egypt’s leading business organisations from a cross section of sectors, including:
· Financial services
· Manufacturing and,
· Real estate.
They conducted 150 one-on-one meetings with top South African and international institutional investors with total assets of $20bn.
The event opened with a keynote address by Mr Mohamed Farid Saleh, Chairman of the Egyptian Stock Exchange, on the perks of investing in the stock market.
Egypt’s Economic Paradigm Shift
Mohamed Farid Saleh, Chairman of the Egyptian Stock Exchange, said: “The paradigm shift in the Egyptian economic policy took place during the last few years, within the context of stabilization and structural adjustment program, and has accelerated the GDP growth rate and increased foreign currency reserves. The Egyptian Exchange (EGX) played a significant role in developing and updating the Egyptian capital market to maintain its role as a pillar of the Egyptian economic reforms.”
He further noted that, “From a value chain perspective, EGX efforts aimed to improve the supply-side of the market, increase the level and quality of disclosures, increase communication channels between listed companies and investors, as well as facilitate trading and implementing new trading tools. Whereas, on the demand-side EGX worked on increasing the level of financial culture and awareness to attract more investors, promote EGX as an incremental long-term saving vehicle to profit from the development of companies’ performance and distribute economic growth fruits among the highest number of investors.”
Africa and Its Many False Starts
One of the conference speakers, Rob Hersov, CEO & Founder, Invest Africa, noted that, “Our beloved continent of Africa has had a lot of false starts and new dawns, but keeps scoring “own goals” (there are a few shining exceptions) mainly due to bad governance/leadership – will Africa always be the Continent of the future? Will the big economies like South Africa, Egypt and Nigeria continue to disappoint? For our children, I hope not!”
Egypt Leads the FDI Race
Ruslan Babaev, Co-CEO, Renaissance Capital, in his comments noted that, “Renaissance Capital is holding its conference against the backdrop of major developments in the region. A true reform-driven story, Egypt is attracting investors: in 2018 alone, it received $7.9bn in FDI, more than any other country in Africa. The marked improvement of the economic and fiscal situation has triggered a 450-fold increase in foreign ownership of local debt, from $0.1bn in late 2016 to $17.0bn in mid-2018. Renaissance Capital is set to further expand our capabilities in the region to deliver best-in-class services to our clients.”
Why Bullishness On Egypt Continues
Anna Vyshlova, Co-CEO, Renaissance Capital, in her review of developments on the continent observed that, “Egypt has popped up on radars of many investors around the world most recently, while Renaissance Capital began paying serious attention to the region back in 2014. Our bullishness on Egypt only increased through 2017-2018 as our analysis of adult literacy and electricity consumption showed that the country had become able to industrialise from as early as 2010, and therefore grow at 4-6% on a per-capita basis. With a population of over 100mn, and an improving economic outlook, we find that the consumer-space, such as food, healthcare, and retail sectors, is where investors should seek opportunities. Renaissance Capital is always delighted to host investors and corporates at our conferences and facilitate networking and investment flows.”
Renaissance Capital provides access to a broad high-quality investor base around the globe via its regular conferences and bespoke trips and roadshows. Last year, Renaissance Capital’s five conferences hosted 280+ investors and c. 100 companies, with well over 1,000 one-on-one meetings. The Firm arranged over 15 dedicated investor trips to Egypt, Kenya, Nigeria, South Africa, Russia and Turkey and over 40 deal and non-deal roadshows.
The upcoming events on the Firm’s investor calendar will be the 10th Pan-Africa 1:1 Investor Conference in Lagos, Nigeria on 13-17 May and the 23rd Annual Russia Investor Conference on 24-26 June in Moscow, Russia.
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