Investing in Emerging Markets

Name: Kavit Handa

Contact: info@afcap.com

Company: Africa Capital

Website: www.afcap.com

Position: Founder and Chairman

Date: 18.2.2020

Industry: Finance

 

 

Tell us about the company and what inspired you to open it?

Africa Capital seeks investment transactions and advisory mandates in a region that will provide a demographic dividend in the next 15 years. As technology enhancements, we deliver exponential catch up in economic inequality

The company had a very diverse set of interests, how do you identify opportunity in the markets you operate in?

We look at teams of management first and their drive for success. We believe you can train skills, but the right attitude needs to be a given. We are industry agnostic as we do not think we can limit ourselves in evolving landscapes.

What are the key strengths you look for in a SME founding team and management structure?

A positive can do attitude where they always look to remove friction from the consumer’s journey. A high moral code and a belief in “we over I” thinking.

Dealing with emerging markets such as Africa comes with opportunity, but at a cost of operational and political challenges. What are the main obstacles Africa Capital and your subsidiaries face and how do you navigate around them?

We follow a high standard on policies and procedures and corporate governance that keep all stakeholders interests aligned.

Since the market has reduced the cost of acquiring property assets, has it improved Africa Capital’s yield and increased the opportunity for diversification across different categories of property assets?

We have been impacted by negative markets as has everyone, but we continue to seek opportunities where we see value or a strategic fit.

Which sector do you see the most opportunity in the SME category for Africa in the next five years?

Fintech and disruption to the banking sector as the unbanked start to get serviced. Also, the recruitment industry might be one to watch in the upcoming years.

What are some of your most exciting investments, both past and present?

A golf course development outside Lagos was an eye opener and exploring Oil and Gas in Kenya has been a roller coaster journey.

What advice would you give to business owners looking to move from being a business operator to an investor?

Hands Off investment has not worked for us in the past. Collective ideas and collaboration have led to better results in our experience.