Mar 30, 2017 Last Updated 9:01 AM, Mar 30, 2017

Africa’s managed assets to exceed $1 trillion

ABN – The value of Africa’s traditional assets under management (AuM) in 12 markets across the continent will reach almost $1.2 trillion in five years’ time, according to PriceWaterhouseCoopers (PwC).

From just $293 billion in 2008 their value is projected to climb to $1.98 trillion by 2020, representing a compound annual growth rate (CAGR) of nearly 9.6%.

The increase will primarily be driven by economic growth and the subsequent rise in wealth, which will increase demand for pensions, life insurance products and retail investment funds.

Increased adoption of technology will make the delivery of these products cheaper, encouraging more Africans to join the formal financial sector.

PwC made these predictions by examining the asset management industry across 12 countries from every corner of the continent.

Ilse French, PwC Africa asset management leader, said: “As Africa has entered the 21st century, economic growth has surpassed expectations and stimulated investor interest across a broad range of asset classes.”

“Although the fund industry in Africa is, in most countries, still developing and has much to prove, global and local asset managers are likely to become more active as the industry continues to flourish.”

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EIB announces African expansion

ABN – The European Investment Bank has announced plans to open four more offices in African cities.

It is also seeking financing to build infrastructure to strengthen its foothold on the continent.

Offices will be opened in Cameroon’s capital, Yaounde, Abidjan in Ivory Coast, Lusaka in Zambia and Maputo in Mozambique.

EIB vice president Pim van Ballekom said: “Africa is growing fast.

“There are many opportunities of investment in energy, water and sanitation and agriculture.”

EIB will provide US$43.8 million to expand Ethiopia’s water and sanitation networks.

@ABNetworkOnline

AfDB approves $62m loan for Kenyan skills development

ABN – The African Development Bank has approved a US$62 million loan to finance Kenya’s Support to Technical Vocational Education Training (TVET).

The Relevant Skills Development project is in its second phase and it aims to tackle the mismatch in skills and the labour market in Kenya.

Youth unemployment in the country recently spiked to 35% compared to 10% for adults.

The project aims to redevelop relevant skills to improve Kenya’s employability rates especially among the youth.

Director of Human Development Sunita Pitamber said: "Kenya is experiencing a skills gap, mainly for technicians and artisans.

“This project will play an important role in supporting the emerging oil, gas and mining industry, which intends to employ between 42,000 and 98,000 people over the next 10 years."

@ABNetworkOnline

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