Core Themes
A foundation for each underlying investment
Investments are typically a function of one or more of our fundamentally-driven core investment themes:
Favourable demographic profile
Resource-related strength
Large and significant productivity gains
Strong economic growth prospects
Portfolio companies generally possess a strong management team and sustainable, differentiating competitive advantage.
Demographics
Long-term growth propsects supported by Africa’s favourable demographic profile
- Africa’s total population will rise to 2 billion by 2050 where 1 in 5 of the world’s inhabitants will be of African descent
- Africa’s working-age population will rise to 1.1 billion by 2040 making it the largest labour force in the world
- Africa’s working-age population has a median age of less than 20 years making it the youngest labour force in the world
- African households with discretionary income are expected to rise by more than 50% to 128 million by 2020
- African consumer spending is expected to rise by nearly 40% to $1.4 trillion by 2020
Please click references for underlying citations and source data.
Resource Strength
Attractive resource base fueling organic growth opportunities that are structural and not cyclical in nature
- Africa is the world’s 2nd largest continent by land mass (30.3 million km2) – larger than Argentina, China, India, the United States and all of Western Europe combined
- Natural resources account for 24% of Africa’s 4.9% annualised real GDP growth since 2000
- Africa remains vastly under-explored despite lower costs of production and distribution when compared to other regions across the globe
- Africa accounts for roughly 80% of new mineral discoveries since 2007 and over one-third of the world’s new oil and gas discoveries since 2000
- Africa maintains 60% of the world’s uncultivated, arable land
Please click references for underlying citations and source data.
Productivity Gains
Low dependency ratios, reduced political risk and declining incidence of corruption are fueling a spectacular rise in labour productivity
- Dependency ratios at all-time low – working class Africans are in position to accumulate, save and invest a greater proportion of discretionary income
- Over 90% of African nations now hold regular democratic elections deemed free and fair – political risk premiums poised to decline
- Declining incidence of corruption – improved conditions for future investment
- Spectacular rise in labour productivity – growth rate of 2.7% p.a. since 2000
- Rising trend of urbanisation – over 50% of Africans will live in cities by 2030
- Africa will be comprised of 17 cities generating at least $10 billion in annual revenue by 2020
Please click references for underlying citations and source data.
Growth Outlook
Economic growth trends remain buoyant across the African region
- Rising per capita GDP, large FDI inflows, greater personal savings and accelerated capital development
- Demand for primary exports remains inelastic as Africa remains one of the least integrated regions in the world – its markets exhibit relatively low degrees of correlation to US, European and Asian economies
- Strong top-line growth fueling attractive valuations across the region
- Management teams across Africa are well positioned to engineer bottom-line expansion via margin improvement and more effective cost management, among other factors
Please click references for underlying citations and source data.
LAtest Company News
Altree Capital backs Wahu Mobility
Altree is proud to announce a third investment into a West Africa e-mobility company that designs, manufactures and sells electric vehicles and provides a comprehensive fleet management solution platform. It has started with an e-bike and other e-vehicle prototypes are in development for launch in the coming years. The company
Altree Capital concludes investment in Uncover
Altree Capital is delighted to announce its recent investment in Uncover Skincare. Uncover, is a digitally enabled, data-driven women’s wellness and skincare brand for Africa, the world’s fastest growing but most underserved beauty market. Established in 2020, the company has successfully launched a range of skincare products and is currently
Altree Capital successfully invests in Kasha
Altree Capital is pleased to announce its investment in Kasha, a platform specialising in digital retail and last-mile delivery of healthcare products and services. The organization started in Rwanda in 2016 and launched in Kenya in 2018. Kasha recently incorporated in South Africa and plans to utilise the investment to
Africa Opportunities Impact Fund COVID-19 Report
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