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MARKET OPPORTUNITY AFRICA
Mkoba believes that the current socio-economic trends suggests that Sub Saharan Africa, and in particular Mkoba’s selected target countries and sectors, presents a highly compelling investment opportunity that is currently underserved by private equity. Mkoba believes that this market opportunity rests mainly on four pillars:
PILLAR I

Sound macroeconomic base, strong growth and improving governance across the continent

> 7 out of the 10 fastest growing economies are in Africa

> Throughout  recent crises and stagnation in other regions  – Africa has continued to grow

> Declining inflation, reduced external debt and evidence of improvement in governance across Africa

> Reforms, liberalization, improving business climates and rule of law

> Widespread and deepening democratization, peace and  political stability improvements

PILLAR II

Resources, skills and capital

> Increased local know-how, sophistication and skills in business, management and technology

> Land use still low, land development, agriculture and agri-business has great potential

> Discovery of natural resources will further increase growth, and provide opportunity for services around the gas and mineral hubs

> Investors increasingly targeting Africa providing capital for further growth
PILLAR III

Increased trade and Investment opportunities


> Regional integration creates larger markets

> Growing south-south trade providing new opportunities for business

> Post conflict and post-socialist countries rebuilding and reforming opening up for private sector investment

> High domestic demand creates opportunity for manufacturing, import substitution and expansion of services and other non-tradable goods

> Underserved private equity market - Private equity penetration in Sub-Saharan Africa remains the lowest in the world.
PILLAR IV

Consumer demand driven growth


> Young population and solid consumer base of more than 900 million people

> Fast urbanization and growing middle class driving the demand

> Consumer spending projected increasing from $680 billion in 2008 to $2.2 trillion in 2030

> 75% of the GDP growth in Africa is from domestic-oriented sectors

> African consumer orient towards high quality goods and brands.

> Demand for basic services and goods outstripping supply