National

Efforts to bring more women into business, especially in emerging markets, are benefiting from new development funding and private sector initiatives.

Why it matters: When companies invest in women, they can see the benefits in their profits, employee productivity and communities, according to an International Finance Corporation report. Because women have often been excluded from the formal economy in emerging markets, that's where companies stand to gain the most.

Context: Hiring more women increases efficiency and productivity, having more women on boards leads to higher returns, and helping them access the capital and professional networks to start businesses expands a company's base of suppliers and customers.

What's happening:  Public institutions have offered support and incentives for companies focused on women's initiatives.

The White House's Women’s Global Development and Prosperity (WGDP) initiative, launched in February, helps support female entrepreneurship and eliminate political and legal barriers for women, in part through a $50 million USAID fund.

In 2018 the Overseas Private Investment Corporation, the U.S.’ development finance institution, launched its 2X Women’s Initiative, committing over $1 billion to women-owned businesses. The other members of the G7 have since joined on and the initiative will extend into African markets with 2X Africa.

Meanwhile, private companies are forming partnerships and developing plans of their own.

On a trip to Ethiopia and Ivory Coast in April, Ivanka Trump and USAID Administrator Mark Green announced a WGDP partnership with the World Cocoa Foundation to provide capital and training programs to women, in addition to other initiatives.

Goldman Sachs will invest $500 million in women-led companies and fund managers through its Launch with GS initiative, including women in emerging markets. The bank continues to grow its 10,000 Women program to train women entrepreneurs in developing markets and will launch a new fellowship in fall 2019.

What to watch: Women’s economic empowerment is solidly on the development agenda. As investments increase, it will be key to track how the private sector advances gender equity.

Aubrey Hruby is a senior fellow in the Atlantic Council's Africa Center.

New programs are helping emerging markets businesses invest in women

Government agencies and private companies are both playing a part.

Ivanka Trump seated next to Ethiopian President Sahle-Work Zewde

Ivanka Trump and Ethiopian President Sahle-Work Zewde. Photo: Eduardo Soteras/AFP/Getty Images

World

Women in business

Expert Voices

Efforts to bring more women into business, especially in emerging markets, are benefiting from new development funding and private sector initiatives.Why it matters: When companies invest in women, they can see the benefits in their profits, employee productivity and communities, according to an <a class="gtmContentClick" data-vars-link-text="International Finance Corporation report" data-vars-click-url="https://www.ifc.org/wps/wcm/connect/b184eb4c-fcd4-4d02-8dee-4dfb0d82edaa/IFC+Invest+in+Women+October+2017.pdf?MOD=AJPERES" data-vars-content-id="058bb3d1-6baf-412b-a51f-417b833cf8df" data-vars-headline="New programs are helping emerging markets businesses invest in women" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.ifc.org/wps/wcm/connect/b184eb4c-fcd4-4d02-8dee-4dfb0d82edaa/IFC+Invest+in+Women+October+2017.pdf?MOD=AJPERES" target="_blank">International Finance Corporation report</a>. Because women have often been excluded from the formal economy in emerging markets, that&#x27;s where companies stand to gain the most.

The NBA announced last month that it would launch the Basketball African League (BAL), marking another advancement for U.S. commercial influence in African markets.

Why it matters: China's development of large infrastructure projects in Africa is often cited as evidence of the country's dominance in its economic rivalry with the U.S. But the U.S. continues to make gains in the creative industries on the continent, as entertainment, media and sports are becoming more important to Africa’s young, urban and increasingly connected population.

Background: The BAL announcement comes after decades of NBA involvement in Africa. Since 2003, the NBA has held Basketball Without Borders events, its primary development and community outreach program, across the continent, and in 2017 opened the NBA Academy Africa in Senegal to train elite male and female prospects. 

NBA’s commitment has led to more than 80 current and former NBA players either from Africa or with direct ties to the continent.

What they're saying: In a statement about BAL, NBA commissioner Adam Silver said that the league is "committed to using basketball as an economic engine to create new opportunities in sports, media and technology across Africa."

In 2016, the league reached a multiyear deal with Econet Media to broadcast over 500 NBA and WNBA games each season.

Additionally, the league brought the game’s biggest players to South Africa for the All-Star NBA Africa game in 2015, 2017 and 2018.

The big picture: The NBA isn't the only U.S. company looking to tap into Africa’s growing media and entertainment markets. In December, Netflix declared plans to invest in original series from Africa, and in February it announced its order of a South African teen series titled "Blood & Water."

Netflix's decision came after Hollywood saw unprecedented success with "Black Panther," which received a warm welcome and sold out movie theaters across the continent.

The bottom line: The BAL is an investment in strengthening American goodwill in African countries and could herald future U.S.-African partnerships in sports and entertainment. 

New NBA league marks growing U.S. influence in African culture markets

Netflix is also tapping into Africa's growing media and entertainment markets.

Satou Diop dribbles the ball as she takes part in an NBA Academy Africa basketball camp at Maurice Ndiaye Stadium in Dakar on May 11, 2018. 

An NBA Academy Africa basketball camp at Maurice Ndiaye Stadium, in Dakar, Senegal, May 11, 2018. Photo: Seyllou/AFP via Getty Images

Africa

Sports

Business

The NBA announced last month that it would launch the Basketball African League (BAL), marking another advancement for U.S. commercial influence in African markets.Why it matters: China&#x27;s development of <a class="gtmContentClick" data-vars-link-text="large infrastructure projects " data-vars-click-url="https://www.businesslive.co.za/fm/features/2018-10-04-mtn-and-huawei-look-to-roll-out-low-cost-rural-network/" data-vars-content-id="2987f892-887c-493c-b02f-f7d92311c0fb" data-vars-headline="New NBA league marks growing U.S. influence in African culture markets" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.businesslive.co.za/fm/features/2018-10-04-mtn-and-huawei-look-to-roll-out-low-cost-rural-network/" target="_blank">large infrastructure projects </a>in Africa is often cited as evidence of the country&#x27;s dominance in its economic rivalry with the U.S. But the U.S. continues to make gains in the <a class="gtmContentClick" data-vars-link-text="creative industries" data-vars-click-url="https://www.atlanticcouncil.org/publications/issue-briefs/getting-creative-about-development" data-vars-content-id="2987f892-887c-493c-b02f-f7d92311c0fb" data-vars-headline="New NBA league marks growing U.S. influence in African culture markets" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.atlanticcouncil.org/publications/issue-briefs/getting-creative-about-development" target="_blank">creative industries</a> on the continent, as entertainment, media and sports are becoming more important to Africa’s young, urban and increasingly connected population.

Shifts in technology and media are changing the way we play, watch and understand sports. Business models are adapting and social change is forcing those in charge of teams and leagues to reconsider decades-old practices.

Given the recent the Al-Shabab terror attack in Kenya, the ongoing unrest in Zimbabwe, and upcoming elections in Africa’s two largest economies, investors are taking pause when looking at the region. But Angola is standing out as a bright spot, where, after years of economic downturn, a 2019 recovery has come into view. 

The President of Angola João Lourenço speaks at a parliamentary plenary session in his honor on November 22, 2018 in Lisbon

Angolan President  João Lourenço speaks at a parliamentary session in his honor on Nov. 22, 2018, in Lisbon, Portugal. Photo: Horacio Villalobos/Corbis via Getty Images

Background: Angola’s economy is heavily reliant on oil, which accounts for approximately 80% of government revenue. The 2014 oil price drop caused Angola’s GDP growth to contract from 5% in 2013 to 2.6% in 2016. As a result, inflation skyrocketed, foreign investment halted, and the Angolan banking sector was crippled. Unsuccessful economic reform attempts led public debt to double, and President José Eduardo dos Santos to step down in September 2017, after ruling Angola for 38 years. 

What’s new: Dos Santos' successor, João Lourenço, campaigned on a reform agenda that included fighting the corruption that had grown rampant under dos Santos and rebuilding the country’s economy. 

In addition to cleaning the ranks of the Angolan government, Lourenço launched the Macroeconomic Stabilization Program (MSP) centering three main interventions: fiscal consolidation, improvements to the business environment, and monetary policy.

The program has already led to significant progress, including a new law that allows international investors to invest in Angola without a local partner (previously a requirement) and the revocation of a pegged-exchange rate, which seeks to eliminate the difference between official exchange and black-market rates.

Lourenço has also established policies for the monetization of natural gases and the creation of an independent regulator to manage oil and gas concessions, previously handled by state-owned Sonangol.

In December, Sonangol secured a $2 billion loan from the China Development Bank to build a refinery in Lobito to reduce Angolan reliance on imported fuels.

That same month, the IMF approved a three-year, $3.7 billion credit for Angola to support its private sector–led diversification efforts and return to fiscal sustainability.

The bottom line: Reforms appear to be alleviating Angola's economic ills, with the World Bank estimating increased GDP growth of 2.9% in 2019. As the economic climate in Angola continues to improve, so too will opportunities for foreign investment — not only in oil and gas, but in growing sectors like tourism and agriculture as well.

Reform programs set Angola on the road to economic recovery

João Lourenço campaigned on fighting corruption and restoring the economy.

Angola

Given the recent the <a class="gtmContentClick" data-vars-link-text="Al-Shabab terror attack in Kenya" data-vars-click-url="https://www.wsj.com/articles/kenya-hotel-complex-under-siege-as-gunmen-open-fire-detonate-explosives-11547563451" data-vars-content-id="6f65fae9-f76f-4fea-afb7-ea2370535b07" data-vars-headline="Reform programs set Angola on the road to economic recovery" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/kenya-hotel-complex-under-siege-as-gunmen-open-fire-detonate-explosives-11547563451" target="_blank">Al-Shabab terror attack in Kenya</a>, <a class="gtmContentClick" data-vars-link-text="the ongoing unrest in Zimbabwe" data-vars-click-url="https://www.npr.org/2019/02/07/688388291/zimbabwe-remains-in-turmoil-after-unrest-and-reports-of-heavy-crackdown" data-vars-content-id="6f65fae9-f76f-4fea-afb7-ea2370535b07" data-vars-headline="Reform programs set Angola on the road to economic recovery" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.npr.org/2019/02/07/688388291/zimbabwe-remains-in-turmoil-after-unrest-and-reports-of-heavy-crackdown" target="_blank">the ongoing unrest in Zimbabwe</a>, and upcoming elections in Africa’s two largest economies, investors are taking pause when looking at the region. But Angola is standing out as a bright spot, where, after years of economic downturn, a 2019 recovery has come into view.

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Africa is the world's fastest urbanizing region, but limited public transit in most cities has led to severely congested roads, creating an acute need for investment and innovation in transportation.

Why it matters: Traffic takes a toll on both economic output and quality of  life in Africa's megacities. But with mobile phone penetration approaching 50%, new technology platforms could help motorbike taxis and other services bridge the gaps in the continent's urban transportation systems.

Context: The average commuter in Lagos, Nigeria, spends 30 hours a week in traffic, so it's no surprise residents there and in other large cities are looking for new options. 

Competition in car ride sharing is strong as local startups compete with Uber and Estonia's successful Bolt (Taxify), fueled by investments from Chinese ride-sharing giant Didi.

For the upper middle class, these services have provided more transport options, but without meaningfully reducing congestion.

What's happening: Building on the interest in new mobility companies, investors are now backing new motorbike and bus ride-sharing start-ups that serve lower income customers to the tune of nearly $100 million.

In Nigeria, GoKada raised $5.3 million for its motorbike transit business and announced boat service, and motorbike logistics company Max.ng is expanding into Ghana and Ivory Coast, after closing a $7 million investment round led by Yamaha. The Chinese company Opera launched its Oride motorbike service and Opay payment platform in Nigeria in May.

SafeBoda, the Ugandan motorbike ride hailing company backed by the Indonesian giant Gojek, has closed another round of funding for its operations in Uganda, Kenya and Nigeria

SWVL, an Egyptian bus technology company, closed an unprecedented $42 million round of investment last week.

Where it stands: Riders have been drawn to these companies, which offer a new  measure of safety in the often accident-prone motorbike markets. They provide helmets, ensure drivers are trained and help if there is an accident — big steps up from the preexisting motorbike taxi market, which was informal and unaccountable — and many offer driver services such as insurance products and asset financing for motorbikes.

What to watch: The race among non-car based platforms will only grow more heated as they compete to increase motorbike ownership, provide maintenance, attract and retain both drivers and customers, master payment technologies and raise new rounds of funding.

New ride-hail options could help Africa's traffic-clogged megacities

More professionalized motorbike taxi services will benefit lower-income commuters.

motorbike taxis waiting for passengers in the shade under an overpass

Motorbike taxis in Lagos, Nigeria. Photo: Pius Utomi Ekpei/AFP/Getty Images

Africa is the world&#x27;s <a class="gtmContentClick" data-vars-link-text="fastest urbanizing region" data-vars-click-url="https://www.csis.org/analysis/urbanization-sub-saharan-africa" data-vars-content-id="8e23572c-34ba-4548-8d66-6f9a0e88f065" data-vars-headline="New ride-hail options could help Africa&#x27;s traffic-clogged megacities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.csis.org/analysis/urbanization-sub-saharan-africa" target="_blank">fastest urbanizing region</a>, but limited public transit in most cities has led to severely congested roads, creating an acute need for investment and innovation in transportation.Why it matters: Traffic takes a toll on both economic output and quality of life in Africa&#x27;s megacities. But with <a class="gtmContentClick" data-vars-link-text="mobile phone penetration" data-vars-click-url="https://www.brookings.edu/blog/africa-in-focus/2019/04/12/figure-of-the-week-gap-in-universal-mobile-phone-and-internet-access-in-africa/" data-vars-content-id="8e23572c-34ba-4548-8d66-6f9a0e88f065" data-vars-headline="New ride-hail options could help Africa&#x27;s traffic-clogged megacities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.brookings.edu/blog/africa-in-focus/2019/04/12/figure-of-the-week-gap-in-universal-mobile-phone-and-internet-access-in-africa/" target="_blank">mobile phone penetration</a> approaching 50%, new technology platforms could help motorbike taxis and other services bridge the gaps in the continent&#x27;s urban transportation systems.

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

The private equity firm Blackstone recently announced that it's in the process of selling its Africa-focused subsidiary, Black Rhino Group, back to management. The decision reflects another lackluster year for African PE, which has seen little growth since the 2014- 2015 fundraising boom that brought many firms into the market.

Steve Schwarzman, CEO and co-founder of the Blackstone Group, participates in a Business Roundtable discussion

Steve Schwarzman, CEO and co-founder of the Blackstone Group. Photo: Mark Wilson via Getty Images

Background: In 2014, Blackstone acquired control of Black Rhino to invest billions into energy and infrastructure projects in Nigeria and Ethiopia, but it failed to close the large deals Blackstone was looking to finance. Blackstone’s departure comes after years of big American PE players leaving the market.

In late 2017, KKR disbanded its Africa team after making only one investment on the continent, in 2014, of $200 million in the world’s largest rose farm, Afriflora, that it has since sold.

While Carlyle closed a $698 million fund dedicated to Africa in 2014, one of its flagship investments, Nigeria’s Diamond Bank, has failed to perform, with shares falling over 90% since Carlyle invested $147 million.

Between the lines: The mismatch between the size of available deals in African markets and the target investment size of global asset managers such as Blackstone continues to be an issue.

In 2017, roughly 90% of Africa-focused PE fund sizes were over $100 million, yet only about 15% of African private companies reported revenue over that number.

Moreover, the typical PE timeframe of a five-year holding period is often too short in African markets, where companies require more wholesale change, currency risk is a challenge, and exit opportunities are limited.

What to watch: As global PE giants leave the region, Africa-focused firms continue to grow. DPI, for example, is in the process of raising a third fund with an $800 million target. DPI and competitors like ECP, Helios, Actis, and Ethos tend to focus on smaller deals, often between $70 million and $100 million.

The bottom line: Funds that successfully tap opportunities in some of the world’s fastest-growing markets tend to share the traits of Africa specialization, patient capital, and tolerance and capacity for smaller assets. The big U.S. players appear uninterested in adapting to these realities in the near term.

Global private equity giants are retreating from African investment

But Africa-focused firms continue to grow.

The private equity firm Blackstone recently announced that it&#x27;s in the process of <a class="gtmContentClick" data-vars-link-text="selling its Africa-focused subsidiary" data-vars-click-url="https://www.wsj.com/articles/blackstone-retreats-from-africa-investment-plan-11549370983?emailToken=3248f1d4470c34dc777a2d4e0f27900e99VqRpjdJXPOnd8RQ2IC4A+5ghpxmdxY7JycwxhHLIBRQYyU2Phj/9gnArG2wTW1Njzc0mhymrt0zcsuDh8Jl0pHyB3USoeoaVncNBZFlEs%3D&amp;reflink=article_whatsapp_share" data-vars-content-id="a7d6887f-56c5-47ac-a2cb-25cea8b7d93c" data-vars-headline="Global private equity giants are retreating from African investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/blackstone-retreats-from-africa-investment-plan-11549370983?emailToken=3248f1d4470c34dc777a2d4e0f27900e99VqRpjdJXPOnd8RQ2IC4A+5ghpxmdxY7JycwxhHLIBRQYyU2Phj/9gnArG2wTW1Njzc0mhymrt0zcsuDh8Jl0pHyB3USoeoaVncNBZFlEs%3D&amp;reflink=article_whatsapp_share" target="_blank">selling its Africa-focused subsidiary</a>, Black Rhino Group, back to management. The decision reflects another lackluster year for African PE, which has seen little growth since the 2014- 2015 fundraising boom that brought many firms into the market.

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Aubrey Hruby

Stories

New ride-hail options could help Africa's traffic-clogged megacities

New programs are helping emerging markets businesses invest in women

New NBA league marks growing U.S. influence in African culture markets

Global private equity giants are retreating from African investment

Reform programs set Angola on the road to economic recovery