MFW4A on Pension capital in Southern Africa and beyond: New avenues for funding private equity

Feb 22, 2016

MFW4A presented its latest brief on pension funds in Botswana, Kenya, Namibia and Nigeria

Stellenbosch
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Senior representatives from private equity fund managers active in Southern Africa, institutional investors into private equity funds, regulators and policymakers met at the 2016 Southern Africa Venture Capital Association (SAVCA) Conference from
February 17th to
18th in Stellenbosch, South Africa to discuss the role of private equity in supporting the enhancement and expansion of businesses, the community and the economy. As an introduction to the panel discussion on “Pension capital in Southern Africa and beyond: New avenues for funding private equity” MFW4A presented its latest brief which explores the approach of pension funds in Botswana, Kenya, Namibia and Nigeria to private equity, with a particular focus on the latest national regulatory changes. Speaking at the conference, Olivier Vidal, Research Officer, Making Finance Work for Africa Partnership (MFW4A) said: “Regulation has long been seen as the main stumbling block to investment in private equity by African pension funds. However, reforms in some of the continent’s key markets are making it possible for local institutional investors to participate in private equity.” He went on to add :
“High returns offered by other asset classes, notably government bonds and listed securities have historically been a disincentive for African funds to invest in PE. However as macro-economic stability improves, the returns on bonds will likely diminish, making private equity a more attractive option”. The conference featured discussions around key issues in the private equity sector:
What is the approach and exposure to private equity?
What are the recent regulatory developments that will have an impact on private equity allocations?
What is the outlook?
What support might be needed to increase the interest in private equity allocations? What are Southern Africa’s private equity deal-making opportunities? These issues were actively discussed and debated by the panelists and participants during the two days of the conference.