The Ai CEO US Investment Roadshow Charting a new course

The Ai CEO US Investment Roadshow 2015 Charting a new course On the eve of the UN General Assembly on the Sustainable Development Goals, the Ai CEO US...
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The Ai CEO US Investment Roadshow 2015 Charting a new course On the eve of the UN General Assembly on the Sustainable Development Goals, the Ai CEO US Investment Roadshow demonstrated that Africa is taking its future into its own hands

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The Ai CEO Investment Summit 2015 Africa is on a new course. With the various successes and failures of the Millennium Development Goals (MDGs) now firmly in the rear-view mirror, this year’s UN General Assembly (UNGA) set a new roadmap for the world; one that will look to ensure a more sustainable route to increased human development. The Sustainable Development Goals (SDGs) will look to further the efforts of the MDGs and aim for success where the agenda fell short previously. But Africa is in a different place than it was at the inception of the MDGs fifteen years ago. The continent is emerging as a global powerhouse, one that has taken its future directly in its own hands and is ready to set its own course: Much of Africa’s future leadership will now be defined by the relationship and interplay between the public and private sectors.

David Creighton, Founder and Director, Cordiant Capital; Matt Lilley, CEO, Prudential Africa, and Elizabeth Littlefield, CEO, OPIC

As such, the Ai CEO Investment Summit has evolved over its eight-year history to become a unique and essential investment platform for public and private sector leaders to share their voice and proposals on African business, economic development and investment and business environment policy leadership. Meeting on the eve of the UNGA at the Thomson Reuters offices in downtown New York – the heart of global finance – this year’s Summit played host to over 250 of Africa’s most prominent and influential business, government and development finance leaders, as well as five African Heads of State. Representatives from leading pension funds, sovereign wealth funds, African capital market leaders, US institutional investors and endowments were also in attendance.

Ai-AUC High-level Leadership Dialogue on Women’s Empowerment and Entrepreneurship

The post-2015 development agenda was the hotbutton topic but fifteen years into the Financing for Development agenda, however, it is becoming clear that there is still a vast chasm to jump. Firstly, there is a funding gap of between some US $1.4 and $2.8 trillion annually: “That’s big,” said David Creighton, Founder of Cordiant Capital, speaking at the Summit, “and as a private sector player, that’s attractive.” The private sector is more than ready to move into that gap. However, as Elizabeth Littlefield, CEO of OPIC, explained, “Even though [everyone’s] talking about the role of the private sector, I still perceive an insidious and pervasive distrust of the private sector by governments,” she said. “And I see this

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James Mwangi, CEO, Equity Bank

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distrust as what’s holding us back the most.” “When you ask developers and investors what’s their biggest concern, it’s not the macroeconomic, or the regulatory or legal frameworks in Africa anymore – it used to be – but that’s a small percentage of their concern. Their main concern over and over again is the lack of political will, of the sense of urgency, and execution capability on the part of the governments.” And these are the needs that Africa investor has recognised and dedicated itself to addressing; a meaningful forum for public-private sector dialogue and a clear set of intentions and expectations of Africa’s leaders on the part of the private sector.

Oscar Onyema, CEO, Nigerian Stock Exchange

Dana Hyde, CEO, Millennium Challenge Corporation

Panel on Financing the New Generation of Large Companies

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Hubert Danso, CEO and Vice Chairman of Africa investor, said, “Ai’s African Heads of State Investment Advisory Council was launched back in 2011 because we foresaw the need for closer interactions with presidential champions. Since then, we have hosted four more Presidential Working Lunches, seen the outcome of the Dakar Financing Summit blossom into the Continental Business Network (CBN), and look forward to closer interaction with Heads of State around the upcoming AU Heads of State Summit. We are absolutely delighted to be at the forefront of these efforts.” This year’s Ai African Heads of State Investment Advisory Council Working Lunch, co-hosted by UN Office of the Special Adviser on Africa, the Global Partnerships Forum and the African Union Commission, welcomed five Heads of State and a number of Ministers responsible for finance and strategic economic sectors in Africa and facilitated critical insights on the business and government partnerships required to implement the agenda for sustainable development in Africa. The meeting was opened by Africa investor’s Danso and Maged Abdelaziz, UN Under-Secretary-General and Special Adviser on Africa, and was facilitated by Amir Dossal, Chairman of the Global Partnerships Forum. Participating government leaders included H.E. Yoweri Kaguta Museveni, President of the Republic of Uganda; H.E. Prof. Peter Mutharika, President of the Republic of Malawi; H.E. Ellen Johnson-Sirleaf, President of Liberia; H.E. Hailemariam Desalegn, Prime Minister of Ethiopia, and H.E. James Wani Igga, Vice President of South Sudan.

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From left: Hubert Danso, Vice Chairman and CEO, Africa investor; H.E. Prof. Peter Mutharika, President of the Republic of Malawi; H.E. Yoweri Kaguta Museveni, President of the Republic of Uganda; Amir Dossal, Chairman, Global Partnerships Forum; H.E. Ellen Johnson-Sirleaf, President of Liberia; H.E. Hailemariam Desalegn, Prime Minister of Ethiopia, and Maged Abdelaziz, Under Secretary General and Special Adviser on Africa, UNOSAA

Speaking on the SDGs, President Johnson Sirleaf said, “For the first time in the formulation of development goals, the private sector and civil society played key roles. And that was a strong message: as we go forward for implementation, the private sector is expected not only to have contributed to the formulation of those goals, but to be a full partner in the implementation.” Heavy emphasis was also placed by Heads of State on their commitment to engaging the private sector on infrastructure investment partnerships, creating the conditions to fast track regional economic integration and to better engage the private sector on strategies to implement the Continental Free Trade Area. Addressing the Heads of State present, Danso said, “We recognise your dedication to place Africa’s priorities at the centre of the imminent SDGs and applaud your continued recognition that the private sector has a critical role to play in mobilising its human and financial resources to assist the continent in realising its development potential, in the context of the global and domestic development frameworks and priorities.” He continued, “We at Africa investor are delighted to have provided leadership of our own in support of your efforts in sensitising and bringing together the private sector and investment community, the results of which are today launched in our seminal Business Statement.”

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This Business Statement, entitled The Business of African Economic Development: Implementing the Sustainable Development and Finance Goals in Support of Agenda 2063, was presented to government leaders negotiating the SDGs on behalf of the business community. The Statement reflects the recommendations and collective views of private sector leaders working in Africa on required partnerships and optimal ways to achieve the SDGs and the African Union’s Agenda 2063. Recommendations included a greater focus on project development within infrastructure; stepping up the role of business in climate finance; tapping and unlocking research and development within technology; a greater focus on industrial and SME development, and a greater focus on women’s empowerment issues, among other recommendations. These Business Statement recommendations were welcomed by the Heads of State and it was agreed that they will also be taken up during the Ai Presidential CEO Investment Summit to be held in partnership with NEPAD and the African Union in January 2016, during the 26th Assembly of Heads of State of the African Union in Ethiopia. African Heads of State will therefore convene again to discuss progress on the implementation of the Statement’s recommendations at the Ai Presidential CEO Investment Summit in Addis Ababa, Ethiopia, 28-29 January 2016.

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The Ai Investment and Business Leader Awards 2015 As part of Africa investor’s ongoing commitment to recognising Africa’s finest business and government leaders for their achievements in Africa over the past year, the prestigious Ai Investment and Business Leader Awards took place during the Summit and rewarded exceptional business practices, economic achievements and investments across Africa, and recognised the institutions and individuals improving the continent’s investment climate. Awards were handed out in the following categories: Best Initiative in Support of SMEs and the Millennium Development Goals was awarded to Heirs Holdings and Investment Climate Initiative of the Year was awarded jointly to MIGA and the Millennium Challenge Corporation (MCC). Bank of the Year went to GTBank while OPIC was given the Ai Green Investment Initiative Award. The Venture Capital/Private Equity Award was won by the Abraaj Group, Citi Group took home the Award for Employer and Human Capital Investor of the Year, while Institutional Investor of the Year and Investment Promotion Agency of the Year went to Public Investment Corporation of South Africa (PIC) and Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI) respectively. The Leadership in Sustainable Investment in Africa Award went to the Bill and Melinda Gates Foundation. Business leaders that were recognised included Funke Opeke, CEO of MainOne Cable, as Africa’s Innovation Leader of the Year; Diane Radley, CEO of Old Mutual Investment Group as Africa’s Leading Woman in Business; and Tony Elumelu, Chairman of Heirs Holdings as Africa’s Business Leader of the Year. International Business Leader of the Year was awarded to Gilberto Rodrigues, CEO, Mota-Engil and Up and Coming Future Leader of the Year went to Ashish Thakkar, CEO of Mara Group. Finally, Claver Gatete, Minister of Finance and Economic Planning of Rwanda was recognised as Africa’s Finance Minister of the Year while Benno Ndulu, Governor of the Bank of Tanzania, took home the Award for Central Bank Governor of the Year. “Well done to all winners and nominees,” said Africa investor’s Hubert Danso. “Once again, we are proud to be able to showcase the best that the continent has to offer and demonstrate that the opportunities on the continent are truly world-class.”

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Ai Investment and Business Leader Awards 2015 1. Best Initiative in Support of SMEs and the Millennium Development Goals Heirs Holdings 2. Investment Climate Initiative of the Year MIGA/Millennium Challenge Corporation (MCC) 3. Bank of the Year GTBank 4. Ai Green Investment Initiative of the Year OPIC 5. Venture Capital/Private Equity Deal of the Year The Abraaj Group 6. Employer and Human Capital Investor of the Year Citi Group 7. Institutional Investor of the Year Public Investment Corporation of South Africa (PIC) 8. Investment Promotion Agency of the Year Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI) 9. Leadership in Sustainable Investment in Africa Bill and Melinda Gates Foundation 10. Africa’s Innovation Leader of the Year Funke Opeke, CEO, MainOne Cable 11. Africa’s Leading Woman in Business Diane Radley, CEO, Old Mutual Investment Group 12. African Business Leader of the Year Tony Elumelu, Chairman, Heirs Holdings 13. International Business Leader of the Year Gilberto Rodrigues, CEO, Mota-Engil 14. Up and Coming Future Leader of the Year Ashish Thakkar, CEO, Mara Group 15. Finance Minister of the Year Claver Gatete, Minister of Finance and Economic Planning, Rwanda 16. Central Bank Governor of the Year Benno Ndulu, Governor, Bank of Tanzania

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The day in pictures

Ai Investment & Business Leader Award Winners 2015

H.E. Ellen Johnson-Sirleaf, President of Liberia

Regional Integration Leaders’ Panel: Tackling the Obstacles to Trade and Investment

From the left to right: H.E. James Wani Igga, Vice President, South Sudan; H.E. Prof. Peter Mutharika, President of the Republic of Malawi; H.E. Yoweri Kaguta Museveni, President of the Republic of Uganda

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The Ai CEO Institutional Investment Summit 2015

The second day of the Ai CEO US Investment Roadshow was a less ostentatious affair, but no less vital in the ongoing dialogue of achieving sustainable development for Africa, especially within its capital markets. The Ai CEO Institutional Investment Summit was a much more intimate and industryled gathering and brought together a number of different perspectives from key communities at the heart of Africa’s capital and institutional investment markets.

Africa’s Capital Market Investment Climate Panel: Building Liquidity and Driving Increased Trading Volumes

Dr Ibrahim Mayaki, CEO, the NEPAD Agency and Dr Mbui Wagacha, Senior Economic Advisor in the Executive Office of the President, Kenya;

Discussions ranged from specific initiatives that African stock exchanges are taking to increase trading volumes and liquidity, to the role of African sovereign wealth funds as strategic capital market investors. Strategies to crowd African pension funds in to capital markets on a co-investing basis were also considered with US pension funds and endowments contributing their views on investing and co-investing in Africa. There was also a strong emphasis on how to engage non-traditional players in investing into Africa’s capital markets. Oscar Onyema, CEO of the Nigerian Stock Exchange, kicked off proceedings. While African stock exchange activity was down for 2015, he said, the outlook is very promising for IPOs going into next year, which will provide more depth to the markets. A key consideration however will be how to better engage private equity players in the creation of a strong pipeline of IPO exits: “There aren’t that many private equity investors that exit their investments through IPOs,” said David Grayson, Managing Director at Auerbach Grayson, “I wish there were more because that would attract a lot of investor interest.” In discussing their current attractiveness, Sunil Benimadhu, CEO of the Stock Exchange of Mauritius, pointed to the importance of internationalising Africa’s capital platforms and compliance with international standards. “There’ve been a lot of positive moves in Africa,” he said, “but the story has to be told.”

Segun Agbaje, CEO, GTBank

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Discussing the role of Africa’s pension funds in capital markets investing, Richard Byarugaba, Managing Director of the National Social Security Fund of Uganda, said, “Our investments tend to be for the long-term, because the liability is for the long term.” This means that most of the investment capital goes to fixed income but he acknowledged that a little bit more work needs to be done to up allocation to equities as “Equities have done very well”, he said. “Our challenge now is to put a little

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bit of exposure into private equity and venture capital with a view to exiting these investments through the stock exchange in order to stimulate it.” As for international pension funds, speaking in her capacity as Executive Director of the Dallas State Retirement Fund based out of Texas, Cheryl Alston conceded that although a third of the fund’s assets are international, very little is still allocated to Africa: “We need to be more intentional about our mandates about investing in the region,” she said. Also long-term in focus – 20 to 30 years – US pension funds (the top 300 of which represent $15 trillion) are also very returns-focused and so need to match high returns with a long-term focus, hence the interest in Africa, she said: “Africa rises to the top in that discussion.”

Rafiq Bengali, General Manager, United Bank for Africa and Ashish Thakkar, Founder, Mara Group

“We’re seeing a lot of great managers with their feet on the ground,” Alston said, but mentioned that it’s important for the boards of international pension funds to ‘kick the tyres’ and be properly educated about “Africa past the headlines” as many still think it’s too risky. However, this also presents an ideal opportunity for co-investment strategies. “If you’re a US pension fund, and you don’t have the resources to really kick the tyres on deals, you’re probably going into private equity so you’re looking [to] the expertise of those types of partners where you’re going to co-invest,” said Mindy Silverstein, Managing Director of economic thinktank, the Milken Institute. Co-investment offers the opportunity to partner with companies that have been on the ground for fifty years or more, and “It’s an assurance for a lot of institutional investors,” she said. However, “Global co-investments have a wide distribution of results,” said Suzanne Bishopric, Managing Partner at Global Sovereign Advisers, advising caution, “but Africa is a unique growth story”. This unique growth story still presents many challenges. While there is much innovation and leadership from the private sector, the public sector doesn’t yet have a clear roadmap on capacity building and financial literacy. But the seeds of development are there and the investment conversation will be continued at the Ai Presidential-CEO Investment Summit in January 2016 in Ethiopia; further at the Ai CEO Infrastructure Investment Roadshow in May 2016, and then on into next year’s Ai CEO US Investment Roadshow.

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Roundtable on US Pension Funds and Endowments Investing in Africa

Cheryl Alston, Executive Director, Dallas State Retirement Fund

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The Ai Institutional Investment & Capital Market Awards 2016 The Summit then played host to the Ai Institutional Investment and Capital Market Awards. Launched in 2007, and linked to the Africa investor (Ai) Index Series, the Ai Institutional Investment and Capital Market Awards are the only pan-African Awards designed to recognise Africa’s best performing stock exchanges, listed companies, investment banks, research teams, regulators, socially responsible companies and sovereign wealth and pension fund investors. Awards were presented in the following categories: Most Innovative African Stock Exchange was awarded to the Stock Exchange of Mauritius, while FBN Capital was recognised as Best African Investment Bank. Standard Bank nabbed the Award for Best Africa Research Team. The Capital Markets Authority of Kenya took Most Innovative Capital Markets Regulator. The Best Performing Broker in Africa went to Ecobank Securities and Asset Management while Prudential was awarded Best Africa Fund Manager. Samba Foods was recognised as Best African Listing. In the Ai Index company categories, Best Performing Ai100 Company was awarded to Zambia National Commercial Bank; Best Performing Ai40 Company went to Equity Bank; Most Innovative Ai SRI 50 Company was awarded to Dangote Cement, and Most Innovative Ai SRI 30 Company went to GTBank for a second year in a row. Bruce Dick, Managing Director of Zambia National Commercial Bank, was recognised as Ai100 CEO of the Year. James Mwangi, CEO of Equity Bank took Ai40 CEO of the Year and Ai SRI 50 CEO of the Year went to Stephen Olabisi Onasanya, CEO of First Bank Nigeria. Ai SRI 30 CEO of the Year was awarded to Phillips Oduoza, CEO, UBA Bank, also for a second year in a row.

Ai Institutional Investment & Capital Market Awards 2015 1. Most Innovative African Stock Exchange Stock Exchange of Mauritius 2. Best Africa Investment Bank FBN Capital 3. Best Africa Research Team Standard Bank 4. Most Innovative Capital Markets Regulator Capital Markets Authority, Kenya 5. Best Performing Broker in Africa Ecobank Securities and Asset Management 6. Best Africa Fund Manager Prudential 7. Best African Listing Samba Foods 8. Best Performing Ai100 Company Zambia National Commercial Bank 9. Best Performing Ai40 Company Equity Bank 10. Most Innovative Ai SRI 50 Company Dangote Cement 11. Most Innovative Ai SRI 30 Company GTBank 12. Ai100 CEO of the Year Bruce Dick, Managing Director, Zanaco 13. Ai40 CEO of the Year James Mwangi, CEO, Equity Bank 14. Ai SRI 50 CEO of the Year Stephen Olabisi Onasanya, CEO, First Bank Nigeria

International Sovereign Wealth Fund Initiative of the Year was awarded to Investment Corporation of Dubai. Senegal’s Strategic Investment Fund (FONSIS) was recognised as African Sovereign Wealth Fund Initiative of the Year. International Pension Fund Initiative of the Year went to the New York State Common Retirement Fund and the Award for African Pension Fund Initiative of the Year was shared by Natal Joint Municipal Pension Fund and the National Social Security Fund, Uganda.

15. Ai SRI 30 CEO of the Year Phillips Oduoza, CEO, UBA Bank

Lastly, the African Pension Fund Personality of the Year was awarded to Lesedi Moakofhi for her outstanding work as CEO of the Botswana Public Officers Pension Fund, and the African Capital Markets Personality of the Year Award went to Patrice Motsepe, Founder of African Rainbow Minerals.

19. African Pension Fund Initiative of the Year Natal Joint Municipal Pension Fund/ NSSF, Uganda

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16. International SWF Initiative of the Year Investment Corporation of Dubai 17. African SWF Initiative of the Year Senegal Strategic Investment Fund (FONSIS) 18. International Pension Fund Initiative of the Year New York State Common Retirement Fund

20. African Pension Fund Personality of the Year Lesedi Moakofhi, CEO, BPOPF 21. African Capital Markets Personality of the Year Patrice Motsepe, Founder, African Rainbow Minerals

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Kenya, on the road to being the heart of Africa’s Capital Markets Through responsive and innovative regulation, the Capital Markets Authority (the Authority) is inspired and driven by the goal of positioning Kenya’s capital markets as an attractive destination for domestic, regional and international issuers and investors to invest in and realize their investments in Kenya, within East Africa, across Middle Africa and the African continent as a whole. At the core of this aspiration lies the Capital Markets Master Plan; a ten-year blueprint for the development of capital markets in Kenya, which aims to position Kenya as the heart of African capital markets. The Master Plan is currently under accelerated implementation under four underpinning pillars, namely: Supporting developmental and economic transformation; Deepening the product and services range and strengthening the infrastructure of the markets; Continuously improving the legal and regulatory environment, and Improving Kenya's connectivity to global markets and its competitiveness as a financial centre. In line with our commitment to broadening the range of products and services available to issuers, investors and market intermediaries, the Authority has facilitated the introduction of products such as Real Estate Investment Trusts (REITs), Asset Backed Securities (ABS) and Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs) and Derivatives, which are expected to be rolled out by end of December 2015. This has been complemented by the recent lifting of restrictions on foreign investment in listed securities, introduction of a listing segment targeting SMEs, the approval of a trading platform for derivative instruments, the introduction of a global standard corporate governance code for listed companies

and stewardship code for institutional investors and the design and introduction of industry certification standards in conjunction with the Chartered Institute for Securities and Investment (CISI). In pursuit of establishing a harmonised single market for securities in the East African Community (EAC), the Authority has been at the forefront of developing East African Community Council Directives to define region-wide legal and regulatory convergence standards for capital markets as well as spearheading initiatives to support the integration of market infrastructure to facilitate the free movement of capital and services within the EAC. As a Board Member of the International Organisation of Securities Commissions (IOSCO), the Authority is proud to be an active player in the development of global standards on securities regulation. The Authority is also engaged in informing regional responses to support systemic stability as one of the securities markets members of the Financial Stability Board (FSB) Regional Consultative Group for subSaharan Africa. With Kenya's growing visibility as a global leader in mobile money solutions and innovation, the Authority is facilitating the roll out of “M-Akiba”, a mobile phone-based platform through which investors will register, purchase, trade and settle government bonds from as low as US $30, targeted to support financial market inclusion and higher national savings levels. Full implementation of the identified activities is targeted to position Kenya’s market to be deep and dynamic so as to stimulate domestic development and provide a gateway for international capital flows in line with Kenya’s Vision 2030.

CONTACT US: Embankment Plaza, 3rd Floor

Tel: +254 20 2264400/ 2264900/ 2221910/ 2221869

Longonot Road, off Kilimanjaro Avenue, Upperhill

Cell: +254 722 207767

P.O Box 74800-00200, Nairobi Kenya

Email: [email protected]

The day in pictures

African Pension Funds Capital Markets Roundtable

International Institutional Investors’ Roundtable on Co-Investing and the Outlook for 2016

Celeste Lo Turco, Sovereign Wealth Fund Expert, SWF Strategic Committee, Italian Ministry of Foreign Affairs

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Hubert Danso, CEO and Vice Chairman, Africa investor

Ai Institutional Investment & Capital Market Award Winners 2016

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Africa investor would like to thank its Summit partners:

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Media Partners:

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For more information on Africa investor, please contact: Hubert Danso Vice Chairman and CEO Tel: +27 (0) 11 783 2431 34 Impala Road, Chislehurston, Sandton, Johannesburg, South Africa Email: [email protected] www.africainvestor.com

Cover image: Songquan Deng | Dreamstime.com

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