Breaking News

Standard Chartered eyes more Zimbabwe private equity deals

by Business reporter
19 February 2013 | 2957 Views
Standard Chartered's private equity arm is looking for more deals in Zimbabwe, a senior executive told Reuters on Monday, betting on a rise in consumer spending after years of hyperinflation.

The British bank, whose private equity business has assets under management of about $4.5 billion, made an investment in Zimbabwean agri-business Ariston Holdings through one of its portfolio companies, Afrifresh Group, last year.

The transaction was worth around $20 million. Ariston was previously listed on the Zimbabwe Stock Exchange.

Despite concerns about political risk ahead of general elections later this year, the bank sees potential for high returns in a country that is "starved for growth capital" after being weakened by hyperinflation, said Peter Baird, Standard Chartered's head of private equity for Africa.

"Standard Chartered Bank loves Zimbabwe and our appetite for equity risk in Zimbabwe is high," he said, listing real estate, consumer goods and retail as the most attractive sectors.

Zimbabwe's long-serving president Robert Mugabe, who formed a power-sharing government with rival Morgan Tsvangirai after a disputed 2008 vote, has set March 16 as the date for a referendum on a proposed new constitution.

A general election is expected later in the year.




Baird acknowledged there could be risks attached to the election, but said so far Standard Chartered's dealings with the government, for example over Ariston, had been relatively smooth.

"They were very reasonable about the indigenisation plan (to increase local ownership of businesses) that we filed ... they were very reasonable about the perception of commercial agriculture being in foreign hands," he said.

The private equity team also wants to be an early mover in a country that boasts a well-educated, English-speaking population, as well as a functioning banking system and capital markets, Baird added.

"Given the right policy framework and the right set of circumstances Zimbabwe will do just great," he said.

Standard Chartered Private Equity has invested around $550 million in Africa since 2008, with about half last year alone.

It was also a co-investor with Carlyle Group LP (CG.O) and South African private equity fund Pembani Remgro Infrastructure Fund in pan-African agribusiness Export Trading Group, a deal announced in November.

Baird was less bullish about the private equity team's investment prospects for Africa as a whole in 2013 given the difficulty of finding companies of the right size and the reluctance of some family-owned businesses to sell equity.

Standard Chartered

Source: Reuters

Should Miss World Zimbabwe have been dethroned?

Yes
31.12%
No
64.27%
Not sure
4.61%
347

Comments

News Updates

Email:

Latest News

Zimbabwe's walking sick

by Professor Welshman Ncube | 01 August 2015 | 1251 Views

Will 'vendorisation' be Mugabe's lasting legacy?

by Clifford Chitupa Mashiri | 01 August 2015 | 1176 Views

Woman in Z$85 000 000 house fraud

by Steven Jacks | 01 August 2015 | 1449 Views

Umthwakazi University to have its first intake in October

by Stephen Jakes | 01 August 2015 | 1856 Views

Alleged serial robbers deny offence

by Staff Reporter | 01 August 2015 | 757 Views

Zinara fires 9 managers, retrenches 300

by Staff reporter | 01 August 2015 | 2684 Views

'I don't want to continuously apologise for being Ndebele'

by Staff reporter | 01 August 2015 | 3224 Views

Muslims forced to convert to Christianity or hide

by Agencies | 01 August 2015 | 1761 Views

Grace Mugabe, Mnangagwa collide

by Staff reporter | 01 August 2015 | 3756 Views

Obert Mpofu's empire collapses

by Staff reporter | 01 August 2015 | 3785 Views

Mugabe given a 72 hour ultimatum

by Staff reporter | 01 August 2015 | 4538 Views

3,000 teachers struck off payroll

by Daniel Nemukuyu | 01 August 2015 | 3649 Views

Granny, 84, arrested for stocktheft

by Whinsley Masara | 01 August 2015 | 1396 Views

Tsholotsho 'witch' resurfaces in Nyamandlovu

by Whinsley Masara | 01 August 2015 | 1693 Views

Jumbo gores man to death

by Staff reporter | 01 August 2015 | 1313 Views

Cameroon deports 2 000 Nigerians

by Agencies | 01 August 2015 | 1056 Views

Umfelokazi uhlanyiswa nguBen 10

by YiNtatheli | 01 August 2015 | 1572 Views

Bandiza ngesikhova ogogo beNkayi

by Ethel Ncube | 01 August 2015 | 1090 Views

Zakhiwa ngenhlabathi yamangcwaba izindlu zePelandaba!

by Msilisi Dube | 01 August 2015 | 921 Views

Zanu-PF ministers supports ongoing job losses

by Staff reporter | 01 August 2015 | 1066 Views

Obama takes focus off Mugabe

by Staff reporter | 01 August 2015 | 1916 Views

Villagers fatally assault a suspected thief

by Staff reporter | 01 August 2015 | 1008 Views

Widow demands own bride price

by Tendai Gukutikwa | 01 August 2015 | 1357 Views

Jealous hubby, friend assault man with log

by Mercy Ngwebvu | 01 August 2015 | 1115 Views

Woman appears in court scantily dressed

by Tendai Gukutikwa | 01 August 2015 | 1860 Views

Man slips into a well he was digging, dies

by Talent Simbi | 01 August 2015 | 1172 Views

Kombi drivers abduct police dog

by Staff reporter | 01 August 2015 | 1419 Views

Prophet's wife brutally whips nephew

by Sherzadee Mkwamba | 01 August 2015 | 1203 Views

New police chief for Manicaland

by Abel Zhakata | 01 August 2015 | 1163 Views

Entertainment

Thokozani Langa consoles Mtshengiseni Gcwensa's familly

by Staff Reporter | 01 August 2015 | 1093 Views

Stand-up comedy on the rise in Bulawayo

by Staff reporter | 01 August 2015 | 1231 Views

Heavy K expected in Bulawayo

by Staff reporter | 01 August 2015 | 1179 Views

Gwanda gospel music extravaganza confirmed

by Staff correspondent in Pretoria South Africa | 29 July 2015 | 3368 Views

Zim music industry dead - Prof Moyo

by Staff Reporter | 29 July 2015 | 4699 Views

Bev causes UK man to soil pants

by Bongani Ndlovu | 28 July 2015 | 8972 Views

Maskandi Mtshengiseni Gcwensa dies

by Stephen Jakes | 28 July 2015 | 6674 Views

Let me be! - Acie Lumumba

by TWZ | 28 July 2015 | 3569 Views
iBlog

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago

Greatsoftline For All Of Your Software Needs

coupon and promo codes: greatsoftline for all of your software needswhile some online sellers have promotional services that reduce the overall amount you spent, others do not .you need to be on the lookout for the best outlets in order to chase th... Read More
ITnews 25 February 2015 ago