Listing on African Stock Exchanges - Extractive Industries: KPMG (Report)

Table of Contents

Read the full report below.

What does Africa have to offer investors as a listing destination?
The recent lack of growth in the developed markets coupled with perceived improvements in political and macroeconomic stability, policy certainty, and legal systems in many African countries, as well as Africa’s growing middle class and rise in consumption is leading to increasing interest by foreign companies and institutions in Africa as an investment destination. Added to this, the US Government is looking to strengthen its commercial ties with Africa through its “Power Africa” and “Investing in Africa Trade for our Common Future” initiatives and its “Doing Business in Africa” campaign.

Despite the promising picture of investing in Africa described above, investors still have many unanswered questions, such as:

  • Is Africa really growing at a pace that outstrips the developed markets and warrants high levels of interest by the global investment community?
  • How does Africa feature with regards to global FDI flows?
  • Is this perceived improvement in political and macroeconomic stability, policy certainty, and legal systems in African countries an actuality and, more importantly, is policy and political uncertainty, poor legal systems, and disease likely to impact on growth and FDI flows into Africa?
  • Is there capital available in local African markets?
  • Are the African stock exchanges illiquid in comparison with their European, American and Australasian counterparts and, if so, why?

Recommended: IPO Watch Africa 2014: PwC (Infographics & Report)

The KPMG “Listing in Africa – Extractive Industries” supplement to the “Listing in Africa” publication attempts to answer these questions and also to provide potential investors with an interest in the extractive industries in Africa with some further insights into the following:

  • How significant the extractive industries are with regards to the equity market capitalisation and liquidity of the various African stock exchanges;
  • How the various African countries rank in comparison with their international peers with regards to various rating criteria, in particular, policy and political uncertainty;
  • The fiscal policies applicable to the extractive industries; and
  • The specific listing criteria and continuing obligations for Mineral Companies either applying for a listing or already listed on the various African stock exchanges.

“Africa is the story. The big story is Africa. The Chinese and Japanese are fighting over Africa. This is a market of a billion people, of natural resources.”
Dr Ahmed Heikal, Chairman and Founder of Citadel Capital

Listing on African Stock Exchanges: KPMG