Investing in Africa
US Africa Business Conference
June 2008
Contents
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1. Standard Bank Group
2. The Standard Bank Africa Investment Team
3. Why Invest in Africa?
4. Standard Africa Development Fund
5. Overseas Private Investment Corporation
6. Contacts
7. Disclaimer
Standard Bank
A leader in Africa and the broader Emerging Markets
Strong and growing presence across the continent
 Standard Bank is the largest financial
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services group in Africa
Headquartered in Johannesburg
Total assets in excess of US$120 billion
Employs 40,200 people worldwide
Represented in 38 countries, focused on
emerging markets and resource banking
 Standard Bank recently won eight
awards in November 2007 from the
Banker magazine including, the
‘Emerging Markets Bank of the Year’ as
well as “Bank of the Year” for seven
different African countries
Standard Asset Management
 Asset Management Unit has over
$1billion invested in Africa (ex. SA)
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Standard: We are Africa’s Asset Manager
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Asset Management
from
Standard Bank
Standard Bank has a
presence in key underresearched growth markets
Standard Bank and
STANLIB trade under
Stanbic name in some
African Markets to avoid
confusion with Standard
Chartered
Strong and growing presence across the continent
 Founded in 1969, STANLIB is one
of the longest established African
asset managers
 Presence in key under-researched
growth markets
 Outside of South Africa,
indigenously staffed asset
management companies in
Botswana, Kenya, Namibia,
Swaziland, Lesotho, and Uganda
 Nigeria to follow with the
Standard Asset Management
acquisition of IBTC Bank by
Standard Bank.
 North and West Africa covered by
specialists in South Africa
 Ability to leverage off Standard
Bank group presence
Primary investment team biographies
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Kevin Colglazier: Chief Investment Officer (based in London)
Before joining SAM, Mr. Colglazier was the Head of Global Fixed Interest in London and the Head of Asian
Fixed Income in Singapore for First State Investments. Prior to this, Mr. Colglazier was the Investment Director
of Fixed Income for Global Asset Management (GAM) in Singapore and London. Before GAM, he was the CIO
at Chase Manhattan Private Bank in Geneva and Hong Kong. Earlier to this, Mr. Colglazier was a fund
manager with Guinness Flight and started his career with Putnam Investments. Mr. Colglazier has a BA in
History and Government from Georgetown University and a MPhil. in International Relations from Cambridge
University.
Alia Yousuf: Head of EM Debt (based in London)
Ms. Yousuf previously managed the emerging market bond portfolios at First State before joining SAM. Prior
to this, she worked as an emerging market debt portfolio manager at Fischer Francis Trees and Watts. Her
previous work experience includes economic analysis for both Emerging Markets Economics Ltd and the
World Bank. Ms. Yousuf holds a BSc in Econometrics and a MSc in Economics from the London School of
Economics
John Mackie: Head of Africa Funds (based in Johannesburg)
Mr. Mackie has overall investment responsibility for all the STANLIB Asset Management portfolios in Africa
outside South Africa. Mr. Mackie joined Standard Corporate and Merchant Bank Asset Management in 1996
as a Portfolio Manager. He also spent eleven years at Standard Merchant Bank’s Treasury Division, seven of
which were in Corporate Foreign Exchange sales. Prior to this he worked as a Money Market dealer. He
holds a Bachelor of Commerce (honours) from the University of Cape Town.
The Standard Africa Development Fund
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A Dedicated Unit
Standard Africa Development Fund
A dedicated unit with
the backing of a well
resourced team
Head of EM Debt
Alia Yousuf
CIO
Kevin Colglazier
Head of Africa Funds
John Mackie
African Debt Unit
David Makoni
Analyst
TBA
TBA
Emerging
Market Debt
Kenya
Botswana
Namibia
Pan Africa
(ex SA)
Alejandro
Arevalo,
Analyst
Gathungu
Gichuha, PM
Bangidza
Dhliwayo, PM
Eino Emvula,
Analyst
Stephane
Bwakira, PM
Chris
Perryman,
Dealer
Abdi
Hassan,PM
Modise
Mokone,
Analyst
Mark
Bodon
Senior Credit
Analyst EM
Kenneth
Kaniu,
Analyst
Thabo Ncalo,
Analyst
Why Invest in Africa?
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"If Russia was a once-in-a-lifetime opportunity, sub-Saharan Africa is a second
once-in-a-lifetime opportunity“
Stephen Jennings, Renaissance Capital, May 2007
“[Sub-Saharan Africa] is not all hype. High commodities prices, good debtmanagement, … debt relief and better economic leadership have produced the
strongest growth and lowest inflation in sub-Saharan Africa in over 30 years.”
Economist, December 2007
“The continent is experiencing its highest growth since the 1970s”
The Africa Competitiveness Report, World Economic Forum, June 2007
“Africa is the only continent yet to be built. It will be here that some of the great
politics of our century will play themselves out. It’s a continent of 900 million
potential producers and consumers. Many of the great rivers and resources on the
planet are here. It is a continent growing economically at more that 5% pa with 23
democratic-ish countries south of the Sahara”
Bob Geldof, February 2008
Africa’s improving environment
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 85% of Africa’s population now lives under stable or relatively stable regimes,
which pursue free market economics
Source: STANLIB
Africa’s improving environment
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Economic Growth Forecast to Average 6%+ in 2008
“Africa’s annual GDP growth has averaged about 5% annually over the past six years. This
growth has been more broad-based, with non-oil exporters growing as fast as the oil exporters.”
Source: OECD Africa Economic Outlook Report (2007)
Source: RMB Africa Research, OECD
Debt service ability has increased substantially
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All Africa external debt and debt service
Source: IMF World Economic Outlook April 2007
African foreign direct investment
FDI Flows into Africa are Now Growing Faster than into any other Emerging Market Region
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Source: Deutsche Bank Research
Untapped mineral reserves
Direct Investors Like China Already See the Opportunities
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Greatest Mineral
Reserves
on the Planet
Platinum
Manganese
Chromium
Diamonds
Cobalt
Gold
Bauxite
Copper
Uranium
Nickel
Oil
Natural Gas
Zinc
Coal
Iron Ore
87.7%
85.8%
73.0%
63.1%
48.6%
41.3%
31.5%
26.4%
16.5%
8.0%
8.0%
7.6%
7.2%
6.4%
4.5%
Source: The Africa Report
Why Invest In Africa?
10 SSA Countries Already Produce Oil With Others Actively Exploring…
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 Nigeria and Angola are major oil producing countries in sub-Saharan Africa
 Oil production is expected to increase as the political and investment climate improves
 Nigeria and Angola now account for almost 20% of the world’s oil production
Source: Economist Intelligence Unit
Oil imports
US now imports more oil from Sub-Saharan Africa than the Middle East
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 U.S. oil imports from the Middle East have been declining since 2002
 Whereas oil imports from Africa have increased and now account for a greater
share of US oil imports than the Middle East
 Africa forecast to provide 25% of US oil supplies by 2010
Standard Africa Development Fund (Deal Pipeline)
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Forthcoming deals
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Expand port facility (Gabon)
Agro-business development (Nigeria)
Infrastructure project financing (Senegal)
Infrastructure project (Sierra Leone)
Small mining project (Botswana)
Housing development (Ghana)
Private financing sector focus
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Agricultural sector: Ghana, Francophone Africa, Kenya
Housing sector: Ghana, Uganda, Francophone Africa
Power sector: Tanzania, Kenya
Infrastructure sector: All across Africa, currently looking into Kenya, Uganda, Ivory Coast, Nigeria
Waste management: Cameroon, Uganda
Deal sourcing
 Our local offices: London, South Africa, Botswana, Swaziland, Lesotho, Kenya, and Uganda
 Capital markets: For example Standard Bank, Citibank, Barclays/ABSA and JP Morgan
 Reverse enquiry: Whereby we uses our extensive region contacts to identify companies that fulfil
the desired currencies and sectors criteria determined by the top/down overlay
Overseas Private Investment Corporation (OPIC)
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Part of the US
Government’s
AFSI Program
OPIC is a leading US Development Finance Institution
OPIC selected the Standard Bank Group to manage the African Development Fund
The Fund is part of the
Africa Financial Sector
Initiative (AFSI) , announced
by the US Government in
early 2007 ahead of the G8
Summit
By combining the incentives
and ingenuity of investment
banking with the social
conscience investment ethos
of the development world,
the AFSI aims to lead to
sustainable poverty reduction
through the profit seeking
ambitions of global market
participants
because of:
 Our group’s strong presence in Sub Saharan Africa
 Our long-standing experience in managing emerging market debt
Our contacts
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Addresses
Standard Bank Plc
Cannon Bridge House
Dowgate Hill
London
EC4R 2SB
Standard New York
19th Floor, 320 Park
Avenue
New York
NY 10022
USA
Baldwin Berges
Head of Distribution for Europe, Middle East
Standard Asset Management, London
+44 (0)207 8153870 baldwin.berges@standardbank.com
Standard Bank Plc
Representative Office
Emirates Towers
16th Floor
PO Box 504904
Dubai
United Arab Emirates
Mark Livingston
Product Manager
Standard Asset Management, New York
+1 212 4075171 mark.livingston@standardamericas.com
Disclaimer
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Whilst every care has been taken in preparing this document, no representation, warranty or undertaking (express or
implied) is given and no responsibility or liability is accepted by Standard Asset Management ("SAM") as to the
accuracy or completeness of the information contained herein. SAM is an operating division of Standard Bank Plc
("SBplc"). SBplc is authorised and regulated by the Financial Services Authority ("FSA") and entered in the FSA’s
register (register number 124823). SBplc or its affiliates, their directors, officers and employees may have a long or
short position in currencies, investments or securities mentioned in this report or related investments, and may add
to, dispose of or effect transactions in such currencies, securities or investments for their own account and may
perform or seek to perform advisory or banking services in relation thereto. No liability is accepted whatsoever for
any direct or consequential loss arising from the use of this document.
Furthermore, the information contained in this document is for information purposes only and should not be construed
as and offer to sell, a solicitation of an offer to buy or a recommendation for any security or as providing advice of any
kind.
The information has been compiled from sources we believe to be reliable, however SAM does not guarantee its
accuracy or completeness. Opinions, forecasts, and estimates constitute our judgment as of the date of this report
and are subject to change without notice.
The investment products described are not FDIC insured and are not covered by the Financial Services
Compensation Scheme in the United Kingdom. Distribution to the investing public or private customers is strictly
prohibited.
All rights to the content contained herein remain the exclusive property of SAM. Copying, duplication or re-publishing
of the information contained in this newsletter is prohibited without the express written consent of SAM. (Compliance
Reference LCSAM0716).