The Brief: Commercial Real Estate Funding Set to Increase, Nigerian Stocks at 9 Month Low

In this week’s roundup, with the opportunity to obtain 10% yields across different sectors, Francophone Africa is becoming a greater attraction in comparison to Europe, Ghana’s President launches pan-African challenge to drive attainment of SDGs, and Nigerian stocks drop by 5.1%.


Funding for Commercial Real Estate Set to Increase In Francophone Africa

Commencing on 16th and 17th of October 2018 in Dakar, Senegal, the bilingual Francoreal Property Investment Summit provides a platform for the area and the continent’s leading real estate investors and developers to explore opportunities, and learn and network in one of the world’s fastest developing zones, Francophone West and Central Africa.

The Summit exists to continue shining a spotlight on the real estate industry in West and Central Africa, both nationally and internationally. According to the host and API Events Managing Director Kfir Rusin, the event has received a great response.”The local market, together with our strong base of multi-billion dollar pan-Africa funds, private equity partners and developers are excited about this region. We believe this bilingual event will result in new partnerships and a flurry of deal-making across the region.”

The West African region has numerous profitable projects. “While the market is still modest, it is growing at a faster clip than the rest of the world and we are also seeing local institutional investors shifting away from direct equity investments and into debt-funded real estate transactions,” said the CEO of JD Diabira of BHCI. However, the main issue is lending and not lack of funds, because natives have almost no reason to offer mortgages.

Furthermore, the interest of the real estate investor is expanding. Abidjan was the sole place of interest for outside investors because of its status as the commercial port and door to Francophone West Africa. However, Senegal’s development, led by its investment into infrastructure and real estate has positioned it on the same level as its neighbour.

The conference has partnered with Teyliom, the region’s premier investor and developer in the industry.

Nigerian Stocks Down 5.1%

Nigerian stocks have plummeted to a nine-month low due to mixed second-quarter earnings and anxieties about political jeopardy in the lead-up to the 2019 presidential election.

The stock has decreased by 5.1 per cent, which stands in contrast to last year’s growth of 42 per cent.

Potential political changes have dampened investor motivation. According to Michael Famoroti, Chief Economist at Vetiva Capital, “Recent declines have been concentrated on a few large-cap stocks. Pressure on Nigerian Breweries may be on the back of slightly disappointing H1’18 earnings, but Dangote Cement numbers were in line with expectations.”

Companies such as Notore experienced an 8.8 per cent drop in shares this week.

Five African Video Games Companies Participate in International Gaming Conference

Five independent African video game companies will participate in Devcom, a co-dependent game developer conference which takes place in Germany from August 19th-20th during the 10th anniversary of Europe’s largest game convention, Gamescom.

Paradise Game, a well-known West African video game company is set to introduce Masseka Game Studio (Central Africa), Studio Lomay (Madagascar), Mog Media Design (Niger), Weza Interactive (Kenya) and Frontfire (Algeria).  This conference provides these game studios with an international platform, offering them an opportunity to show their African-inspired games to professionals from the gaming sector.

Sidick Bakayoko (Founder and CEO of Paradise Game) commented on the enormous socio-economic advantages of the video game industry for Africa. He said: “Our dream is to have video games as one of the main driver[s] of the African economy, and as a way to employ millions of people throughout the continent.”

President of Ghana Launches Pan-African Challenge To Drive Sustainable Development Goals

Named “Africa Innovates for the SDGs”, the award will focus on inventions for the Sustainable Development Goals (otherwise known as the Global Goals), and choose the most impressive innovators from Africa to receive funding and business awareness.

This challenge supports the UN’s plans for continual SDGs. Some of these aims for ensuring sustainable development include: ending all forms of poverty, putting a stop to hunger and providing food security, promoting healthy-living, gender equality and access to quality education.

Ideas that are tried and tested, unique, and endear to one or more of the UN’s sustainability goals and could impact large amounts of people in a positive way across different places in Africa.

Nigerian Solar Panel Company, Cold Hubs, Receives The Microsoft Airband Grant Fund

Recently, three African startups that deliver internet connection to remote communities received the Microsoft Airband Grant Fund. Included in the group was the Nigerian solar-powered cold room solution company, Cold Hubs.

The grant fund provides numerous benefits to help develop the recipients. Through this grant fund, the startups will have access to financing, technology, mentorship and networking events.

Microsoft is determined to support these companies and believes that wifi “empowers entrepreneurs to start and grow small businesses”, and helps people such as farmers, doctors, and students to excel and advance in their roles.

The Microsoft Grant Fund is part of the Airband Initiative which aims to expand internet access to rural areas.