South African investors to step up outward investment

Mar 05, 2010

South African investors plan to increase their operations elsewhere in Africa, according to a report by KPMG.

New research by the firm, which provides audit, tax and advisory services, shows a decline in South Africa's 70 per cent share of private equity deals taking place in the sub-Saharan region in 2008.

According to Reuters, 58 per cent of the South African investors questioned by the accountancy firm at a conference last month said they plan to carry out inward investment in other African countries during 2010.

And 59 per cent intend to raise funds from their domestic market and overseas in order to increase their activity across frontier Africa, which runs west to east from Senegal to Kenya and to the South African border in the south.

Warren Watkins, head of private equity at the South African unit of KPMG - which has 12 offices across South Africa - stated 46 per cent of participants see "Africa excluding South Africa" as "the next meaningful opportunity" for investment.