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Deals Advisory
Africa Singapore Business Forum 2016West Africa: Region Overview
Strictly Private and ConfidentialAugust 2016
Disclaimer "This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it."
"(c) 2016 PwC. All rights reserved. PwC refers to the Nigeria member firms, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
Please see www.pwc.com/structure for further details"
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
1 Overview of Africa 4
2 Key Economies in West Africa 7
3 Nigeria 8
4 Ghana 15
5 Cote d'Ivoire 18
6 Gabon and Equatorial Guinea 21
7 PwC point of view 25
8 PwC Experience in West Africa 27
Agenda
3Africa Singapore Business Forum 2016
Agenda
PwCAugust 2016
Confidential Information for the sole benefit and use of PwC’s Client.
Overview of Africa
Africa Singapore Business Forum 2016 • West Africa: Region Overview
4
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Snapshot of AfricaAfrica has experienced accelerated growth over the past decade as a result of improved macroeconomic, political stability and structural economic reforms.
5Africa Singapore Business Forum 2016
1 Overview of Africa
Key Trends
• Africa’s population is forecasted to more than double from 1.2 billion in 2010 to 2.5 billion in 2050
• Increased focus on infrastructure development to cater to the needs of the growing population
• Private consumption continued to be the main GDP growth driver across subregionsin 2015. Compared to GDP, private consumption increased significantly in North, Southern and West Africa, growing at 2.2 per cent, 2.1 per cent and 3.4 per cent, respectively, in 2015.
• 11 out of the 54 countries account for 80% of Africa’s GDP. Some of these countries are Nigeria, Kenya, South Africa, Cote D’ivoireetc
• Increased demographic and economic growth in Sub-Saharan Africa
• There are key multinational and indigenous companies ranging from oil & gas, retail & consumer goods, pharmaceutical to telecommunications companies that account for majority of economic activities in Africa
Real GDP
Growth (%) 2008 2009 2010 2011 2012 2013 2014 2015 2016e
West Africa 22% -12% 29% 10% 11% 11% 4% -10% -18%
Nigeria 27% -17% 39% 11% 12% 11% 7 % -12% -26%
Ghana 14% -9% 25% 13% 8% 2% -12% 3% 10%
Cote d’Ivoire 5% 10% 0% -4% 16% 17% -4% 2% 13%
>1 billion inhabitants in 54 cou ntries
>1,000la nguages 2/3
w or lds’ w or kforce
by 2050
1/3w or ld’s mineral r eserves
Sour ce: International Monetary Fund, BMI
Ma jor GDP Cont ributors
A g riculture
Tr ade
ICT
Min ing
Ma n ufacturing
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
West Africa is increasingly identified as an attractive destination for investors across all economic sectors
6Africa Singapore Business Forum 2016
1 Overview of Africa
Libreville
Kananga
Ndola
Nacala
Dar es Salaam
Zanzibar
Mombasa
Beira
Kalemie
Antananarivo
Maputo
Lusaka
Bulawayo
Harare
Gaborone
Johannesburg
Durban
Port Elizabeth
MaseruMbabane
Cape Town
Luderitz
Walvis Bay
Windhoek
Namibe
Menongue
Lobito
Malanje
Lilongwe
Mbeya
Lake Tanganyika
Luanda
Kinshasa
Brazzaville
Pointe-Noire
Toliara
Pretoria
Agadez
Zinder
Faya-Largeau
N' DjamenaMaiduguri
Kano
Abuja
Khartoum
Al Fashir
Juba
Waw
Asmara
Addis
Ababa
Port Sudan
Malabo
Yaounde
Bangui
Djibouti
Berbera
Mogadishu
Kisangani
Bujumbura
Nairobi
Kampala
Kigali
Bechar
Tripoli
Al Jawf
Oran
Algiers Tunis
Cairo
Aswan
ConstantineRabat
Marrakech
Casablanca
Laâyoune
TombouctouNema
Nouakchott
Tamanrasset
NiameyBamako
AlexandriaBanghazi
Abidjan
Accra
Loma
Porto-Novo
Ouagadougou
Lagos
Dakar
Monrovia
Freetown
Banjul
Conakry
Bissau
TANZANIA
BURUNDI
EQUATORIAL GUINEA
ANGOLA
REPUBLIC
OF THE
CONGO
MALAWI
ZAMBIAMOZAMBIQUE
MADAGASCAR
ZIMBABWE
BOTSWANA
SWAZILAND
LESOTHO
SOUTHAFRICA
NAMIBIA
ANGOLA
NIGER
CHAD
SUDAN
ETHIOPIA
DJIBOUTI
ERITREA
UGANDA
SOMALIA
KENYA
DEMOCRATIC
REPUBLIC
OF THE CONGO
(ZAIRE)
CENTRAL
AFRICAN
REPUBLIC
RWANDAGABON
NIGERIA
CAMEROON
TUNISIA
MOROCCO
WESTERN SAHARA
ALGERIA
MALI
LIBYAEGYPT
BENIN
TOGOCÔTE
D’IVOIRE
BURKINA FASOGUINEA
SENEGAL
GHANA
LIBERIA
MAURITANIA
SIERRA LEONE
THE GAMBIA
GUINEA BISSAU
Lake
Nyasa
Lake
Victoria
MediterraneanSea
RedSea
IndianOcean
IndianOcean
AtlanticOcean
AFRICA
WEST AFRICA
Region West A frica
GDP (nominal) USD 691 bn (2014)
Land Area 5,112,903km2
Population (T otal)
344mn (2014)
Population (15-64yrs)
183mn (2014)
Density 49.2/km2
Climate Tropical
Currency Naira (NGN), Cedi (GHS), W. African CFA franc (XOF), Dalasi (GMD), Franc (GNF), Dollar (LRD), Leone (SLL), Escudo (CVE),
Religion Christianity, Islam, African Traditional
Major Economies
Nigeria, Ghana, Cote d’Ivoire
Major Cities Lagos, Abuja, Accra, Abidjan, Port Harcourt
ECOWAS
• The Economic Community of West African States (ECOWAS) consists of 15 West African Countries
• ECOWAS was founded 28 May 1975 with the signing of the Treaty of Lagos
• The mission of ECOWAS is to promote economic integration across the region
• The Chairman is Ellen Johnson SirleafSou rce: BMI
Agenda
PwCAugust 2016
Confidential Information for the sole benefit and use of PwC’s Client.
Key Economies in West Africa
Africa Singapore Business Forum 2016 • West Africa: Region Overview
7
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Nigeria
8Africa Singapore Business Forum 2016
3 Nigeria Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Compelling investment opportunity - NigeriaNigeria is Africa’s largest economy and most populous nation
9Africa Singapore Business Forum 2016
3 Nigeria
Sou rce: CIA , National Bureau of Statistics, World Bank, Central Bank Of Nigeria
POPULATIONNo 1Economy in Africa
OFFICIAL LANGUAGE
CURRENCY
22nd largest
economy in the
world
DEMOGRAPHICS
CLIMATE
43%0-14 years
3% 65 years +
54%15-64 years
English
OIL PRODUCTION
No 1 producer
of crude oil in
Africa and 6th
largest in the world
Naira (NGN)
N
TIME ZONE
GMT +1
Tropical
36states and a
Federal Capital Territory,
Abuja
181.5mn
Over 250ethnic groups
Cou ntry Nigeria
Capital Abuja
President Muhammadu Buhari
GDP USD 484.4 bn (2015)USD 340 bn (post Naira float in June 2016)
Land Area 923,768km2
Exchange rate NGN 325 / USD (19th August, 2016)
Natural Resources
Petroleum, Iron ore, Coal and others
Religion Christianity, Islam
DiallingCode 234
Commercial Centres
Lagos, Port Harcourt, Abuja, Kano, Ibadan
ECONOMY
Key Highlights
• Urban population of 47.8%
• 13.6 mn active social media accounts
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Why invest in Nigeria?Significant growth trajectory driven by abundant natural resources and an enabling investment framework
10Africa Singapore Business Forum 2016
3 Nigeria
Stable political atmosphere
Low minimum wage
Fair tax policies
Large population workforce
Favourable government policies
22ndlargest economy in the
world and Africa’s largest economy.
A population of over 181 mn and growing, Nigeria represents the largest consumer demand in Africa.
In 2014, Nigeria received over
USD 8.3 bn in foreign
direct investments.
Easy access to market
Large road network
Sou rce: World Bank, PwC A nalysis
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Diversified investment opportunities across various sectors
11Africa Singapore Business Forum 2016
3 Nigeria
Entertainment and Hospitality
Manufacturing MiningAgriculture
Energy & Power Transportation
Key sectors identified by the government with medium to long term investment / development opportunities
Nigeria has 84 mn hectares of arable
land which is more than twice the size of Japan.
Nigeria accounts for 23.1% of
manufacturing activity in Africa
Over 40 mineral resources in over 500locations as at 2015
2ndlargest gas reserve in Africa (5.1 tcm)
and the 9thin the world in 2015
Estimated power demand of over 15 GW,but generation of ~2.5GW in June 2016
Extensive national rail network at
3,557 km, second only to South
Africa in length.
Sou rce: BMI, PwC Analysis
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Key enablers in the Nigeria investment equation
12Africa Singapore Business Forum 2016
3 Nigeria
Solving the Power ChallengeExperiencing growing pains but private sector leadership of the sector bodes well for the future
Increased focus on Public-Private Partnerships
Building Stronger Technical PartnershipsLimited locally developed technology platforms and technical expertise
Political stability and improved regulatory environment Stable democracy and successful civilian-to-civilian transition since 1999
Population and urbanization dynamic guarantees an offtake
market and a robust labour force
Infrastructure across all sector prioritized for
Investment
Sou rce: FMA RD, World Atlas, FAO, IITA , UNDP, IUF
Solving the Transport ChallengeIncreased involvement of the private sector in transport infrastructure is a huge focus
Better PlanningImproving culture of master planning and project planning, management and reviews
Local funding de-risking international fundingIncreased capabilities to deliver an investment base of locally generated equity and debt financing
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Success stories: illustrative transactions in Nigeria
13Africa Singapore Business Forum 2016
3 Nigeria
Investor/Target Industry Year Deal Size Description
Consumer Goods
2016 US$700 million
• Coco-Cola acquired 40% stake in Chi Ltd, a leading juice producer in Nigeria, with an option to increase its stake to 100%
ConsumerGoods
2015 US$ 450 million
• Kellogg Company, American cereal giant, paid US$450 million for a 50% stake in Nigeria-based Multipro, a food sales and distribution company owned by Tolaram, with an option to buy a stake in Tolaram's African unit
Oil and Gas 2013 US$ 3 billion
• Helios formed a US$3billion joint venture with BTG Pactual and Petrobras to explore for oil and gas in Angola, Benin, Gabon, Namibia, Nigeria and Tanzania
Retail 2015 US$ 54 million
• Actis, an emerging market focused private equity fund, invested US$54 million in Food Lover’s Market, an independent African food retailer
Telecommunications
2014 US$ 2.6billion
• ECP (Emerging Capital Partners), a private equity fund, invested US$2.6 billion in form of equity and debt in IHS for the acquisition of 2,100 towers, construction of new towers, and upgrade of existing towers in Nigeria
• The transaction won the Deal of the year at the PEA GP & Advisor Awards 2015
Success Story: Building an Industrial Conglomerate
• West Africa’s largest manufacturing conglomerate and one of the largest in Africa.
• Dangote group has operations in cement production, sugar & salt refining, flour milling, transportation & logistics, food & beverage and real estate
• Listed on the Nigerian Stock exchange and has subsidiaries in 5 other African countries. These are Ghana, Benin, South Africa, Cameroon and Zambia
• 26,000 employees with about US$ 3 billion in revenue in 2014. Market capitalisation of its cement subsidiary is US$ 14 billion
• Developing a US$ 9 billion oil refinery and petrochemical complex in Nigeria
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Simplifying and enabling your business / project investment decisionThe Nigerian Investment Promotion Commission (NIPC) was created to serve as the nation’s investment gateway
14Africa Singapore Business Forum 2016
3 Nigeria
Identification and invitation of potential investors to specific projects
Assistance in company incorporation processes
Coordination and streamlining of the activities of relevant agencies
3
4
5
Assistance in processing of regulatory approvals and permits from agencies
6
Promoting networking among investors7
Way s In Which NIPC
Helps To Foster Investments
Matchmaking local entrepreneurs with foreign partners
2
1Provision of investment information
The NIPC offers a one-stop-shop solution to ensure efficiency, transparency, and convenience for investors towards business entry processes as well as the guaranteed protection of investments.
Sou rce: corporate-nigeria.com, .nipc.gov.ng
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Ghana
15Africa Singapore Business Forum 2016
4 Ghana Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Ghana is one of Africa’s most active economies and stable democracies, having enjoyed above average economic growth due to the development of new sectors in addition to recent oil discoveries
16Africa Singapore Business Forum 2016
4 Ghana
Sources: CIA Factbook, Global-rates, World Bank, Oanda, IBGE, Trade Economics, IMF, Pw C Reports & Analysis
Cou ntry Gh a na
Area 238,533 sq km
Population 26.33mn (2015 est)
Climate Tropical
Natural Resources
Gold, Timber, Industrial diamonds, rubber, petroleum, silver, salt, limestone
GDP US$36.04bn (2015)
GDP Real Growth Rate 3.5% (2015)
LabourForce 11 .54mn (2015)
Unemployment rate 5.2% (2013)
MajorCities Accra, Kumasi
Currency Cedi
Tax and Regulation
2014
1. Corporate Income Tax (CIT) 25%
2. Personal Income Tax 0-25%
3. Ease of pay ing taxes ranking 68/189
* Average world tax rate is 43.1%
CÔTED’IVOIRE
TOGO BENIN
BURKINA FASO
Badou
Bohicon
Baf iloBouna
Cape Coast
Sekondi
Awaso
Kumasi
Kof oridua
Ho
Suny ani
Tamale
Wa
Bolgatanga
Lomé
Accra
Ghana
LakeVolta
Gulf of Guinea0 25 50 75 Kilometers
75 Miles50250
Ghana
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Ghana is one of Africa’s most active economies and stable democracies, having enjoyed above average economic growth due to the development of new sectors in addition to recent oil discoveries
17Africa Singapore Business Forum 2016
4 Ghana
Sources: CIA Factbook, Global-rates, World Bank, Oanda, IBGE, Trade Economics, IMF, Pw C Reports & Analysis
2015 GDP Contribution by Sector
2 1%
2 8 %5 1%
Agriculture Industry Services
Key facts • The Ghanaian economy is driven by exports of its valuable natural resources such as gold and oil, as well as manufacturing
Telecommunications
• Ghana has been successful in expanding access to mobile services with 30.36millionn mobile subscriptions at the end of December 2014
• Major players in the industry are MTN, Vodafone, Tigo and Airtel. Other players include Globacom and Expresso
Oil and Gas • Ghana is an energy economy in transition. Having been largely import-dependent for decades, the start-up of the Jubilee oil field in 2010 has transformed the country into a net exporter
• Ghana faces the same internal capacity challenges as many other African countries
Retail • Department store chain in the countryinclude Woolworths, pick n pay
• Global makeup brand Maybelline officially launched in Ghana during May 2015
• The country's urban and wealthy areas have experienced a number of modern retail projects
Consumer Goods
• Presence of major fast moving consumer goods companies in the country. Some of these companies include Unilever, PZ cussons
• Consumer goods purchase account for 41%of total monthly household expenditure
32
37 39 40
35 36
40
0%
13%
8%
2%
-12%
3%
10%
(15%)
(10%)
(5%)
0%
5%
10%
15%
0
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016e
US
Db
n
Ghana Nominal GDP
GDP GDP Growth
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Cote d'Ivoire
18Africa Singapore Business Forum 2016
5 Cote d'Ivoire Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Cote d’Ivoire has shown steady recovery from major political crisis and shows prospects for growth
19Africa Singapore Business Forum 2016
5 Cote d'Ivoire
Sou rce: African Development Bank Group, Business Monitor International, CIA Factbook
Cou ntry Cot e d’Iv oire
Area 322,463 sq km
GDP $31.17bn (2015)
GDP – real growth rate
8.6% (2015 est.)
Population 23.3mn (2015)
Urban population 54.2% of total population (2015)
Inflation rate (consumer prices)
1 .2% (2015 est.)
Natural resources Petroleum, Natural gas, Diamonds, Iron ore, Gold, Copper, Cocoa beans, Coffee etc.
Climate Tropical
Official language French
Currency CFA
Primary airport Abidjan
Odienné
Korhogo
Séguéla Bondoukou
Man Bouaké
Daloa
Adzopé
Dabou
Abidjan
Aboisso
San-Pédro
GHANA
BURKINAFASO
MALI
GUINEA
LIBERIA
YAMOUSSOUKRO
Gulf of Guinea
CÔTE D’IVOIRE
Tax and Regulation
2014
1. Corporate Income Tax (CIT) 25%
2. Personal Income Tax 60%
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Cote d’Ivoire has shown steady recovery from major political crisis and shows prospects for growth
20Africa Singapore Business Forum 2016
5 Cote d'Ivoire
1 8 %
2 0%
6 2 %
Agriculture Industry Services
Sources: CIA Factbook, Global-rates, World Bank, Oanda, IBGE, Trade Economics, IMF, Pw C Reports & Analysis
2015 GDP Contribution by Sector
• 54.2% of Cote d’Ivoire’s total population is the urbanpopulation, leaving the rural population at 45.8%. It isexpected to reach 57.5% by year 2020
• Cote d’Ivoire has a literacy rate of 43.1%
• Cote d’Ivoire’s working Population (15-64 years) of thetotal population is 55.4%
Consumer Goods
• Rising income and an underdeveloped consumer goods sector have made Cote d’Ivoire a destination for consumer goods companies looking to expand
Oil and Gas • Cote d’Ivoire has significant offshore petroleum and natural gas reserves which has caused a major boom for the country’s revenue
• Oil refining and processing has also been another major source of revenue
Retail • Cote d'Ivoire's retail sector should experience rapid growth as a result of underdevelopment, rising income level. The entrance of Jumia in 2013 has
opened up e-commerce sector in the country
T elecommunications
• Major players in this sector are MTN, Orange, Moov, GreenN and Koz• In 2014, Cote d’Ivoire had 23.9million mobile subscribers accounting for 109%
penetration rate. Value added Service is the major source of value for customers
Key sectors driving growth
25 24
28
33 31 32
36
0%
-4%
16%17%
-4%
2%
13%
(10%)
(5%)
0%
5%
10%
15%
20%
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016e
US
Db
n
Cote d'Ivoire Nominal GDP
GDP GDP Growth
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Gabon and Equatorial Guinea
21Africa Singapore Business Forum 2016
6 Gabon and Equatorial Guinea Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Gabon – Macro-economic Overview
22Africa Singapore Business Forum 2016
6 Gabon and Equatorial Guinea
Cou ntry Ga bon
Area 267,667 sq km
GDP $14.35 bn(2015)
GDP – real growth rate 4% (2015)
GDP – per capita (PPP) $18,600(2015)
Population 1 .71mn
Labour force 653,700 (2015)
Literacy rate 83.2%
Inflation rate 0.1% (2015)
Climate Tropical
Urban population 87 .2% of total population (2015)
Official language French
4 %
3 9 %
5 7 %
Agriculture
Industry
Services
2015 GDP Contribution by Sector
Oyem
Makokou
Kango
Booué
LastoursvilleLambarénéPort-Gentil
MouilaFranceville
Tchibanga
Mayumba
Owendo
CAMEROON
EQUATORIAL
GUINEA
REP. OF
THE CONGO
REP. OF
THE CONGO
Bight
of
Biafra
Corisco
Bay
South
Atlantic
Ocean
GABON
LIBREVILLE
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Why invest in Gabon?
23Africa Singapore Business Forum 2016
6 Gabon and Equatorial Guinea
Quality investor services
Development of transport infrastructure
Construction of a Tax Free Trade
Zone
Commitment to economic growth
Politically stable Strong foreign trade relations
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Equatorial GuineaExploitation of oil and gas deposits, beginning in the 1990s, has driven economic growth in Equatorial Guinea
24Africa Singapore Business Forum 2016
6 Gabon and Equatorial Guinea
Luba
Bata
Ebebiyin
Mongomo
EvinayongMbini
Acalayong
Isla de Bioko
Isla de Conisco
Isla de Annobón
Island not shown in truegeographical position.
Bight
of
Biafra
Corisco Bay
MALABO
EQUATORIALGUINEA
CAMEROON
GABON
Cou ntry Equ a torial Guinea
GDP $9.403 billion (2015)
Population 7 40,743 (2015)
Labourforce 195,200 (2007)
Industries Petroleum, Natural Gas, Sawmilling
CrudeOil – proved reserves
1 .1bn bbl
Area 28,051 sq km
Climate Tropical
Urban population 39.9%
Official language Spanish, French
CurrencyCooperationFinanciere en Afrique Centrale francs (XAF)
Capital Malabo
Largest city Bata
Sources: CIA Factbook
5 %
8 6 %
9 %
Agriculture
Industry
Services
2014 GDP Contribution by Sector
Agenda
PwCAugust 2016
Confidential Information for the sole benefit and use of PwC’s Client.
PwC point of view
Africa Singapore Business Forum 2016 • West Africa: Region Overview
25
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Africa will continue to experience significant investment interest
26Africa Singapore Business Forum 2016
7 Pw C point of view
Africa’s real GDP growth is expected to increaseby about 4.3 per cent in 2016 and 4.4 per cent in2017, led by strong domestic demandand by investment, particularly in infrastructure
By 2025, Urbanization will be above 50% of Africa. A quarter of global population will be African by 2050 – large retail and consumer, communication, and telecommunications opportunities
Infrastructure spend in Africa to reach US$ 180 billion per annum by 2025- caused by increased demand for energy, transportation, ICT, consumer goods, water supply and urbanisation
Consumer spending will nearly double to $1 trillion by 2020. Africa would have the largest labour force by 2050
Africa is dominating global growth with its growth in population, capital inflows and infrastructure development
Emergence of more African multinationals similar to Dangote Group, MTN group, KenolKobil and Shoprite
West Africa’s growth is projected to increase to about 5.2 per cent in 2016 and 5.3 per cent in 2017, boosted mainly by an improving economic performance in Nigeria, with its emphasis on diversifying investments into non-oil sectors
Private equity investment in Africa has increased by 20% yearly for the last decade, making it the fastest growing private equity market globally
Agenda
PwCAugust 2016
Confidential Information for the sole benefit and use of PwC’s Client.
PwC Experience in West Africa
Africa Singapore Business Forum 2016 • West Africa: Region Overview
27
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Our “Select” Experience in West Africa
28Africa Singapore Business Forum 2016
8 Pw C Experience in West Africa
The clients completed the purchase of the PHCN successor distribution companies and required advisory services to support its post acquisition takeover and integration
PwC was engaged to provide financial due diligence to fully evaluate the DisCo’s assets, liabilities and financial implications of the clients’ investment in each of the related Distribution Company
Three (3) separate Power DisCos
On-going 2013
Three (3) separate Generation Companies
Niger Delta Power Holding Company (NDPHC) requested for the submission of proposals to shortlisted (pre-qualified) investors for the acquisition of an 80% stake in each of its 10 power Generation companies
Each of our clients engaged PwC Nigeria to prepare the business plan, financial model and to provide transaction advisory services in the preparation and submission in response to the request for proposals by NDPHC. All 3 companies emerged as preferred bidders for their respective target assets
Private IPP Client
On-going The client is in the process of setting up a world class 6 - 7 MW dedicated independent power project to be located in Nigeria.
The IPP intends to grow into a 50MW power generation company and enjoy the benefits of operating at a much larger scale.
PwC was engaged to provide transaction advisory services involving; Business Initiation & Optimization Support to improve the performance of the company’s assets and operations.
2013
Power Consortium, Nigeria
The client emerged as the preferred bidder to purchase majority shares of a Distribution Company (Disco).
The company engaged PwC Nigeria to provide Financial advisory services in connection with determining an efficient shareholding structure and funding mix for completion of the purchase of the Disco in line with BPE approved guidelines.
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Our “Select” Experience in West Africa
29Africa Singapore Business Forum 2016
8 Pw C Experience in West Africa
The client, a state owned electricity generator, appointed PwC to advise on the divestment of a proportion of the equity in Ghana’s main thermal power plant to an American utility, CMS.
PwC services included: Reviewing the previous valuation of the power project; financial modeling of the project, Preparing an information memorandum, setting the proposed terms of the divestiture, and a fair value report; Negotiating the terms with CMS.
State owned electricity generator
PwC was appointed by PPIAF to assist in the development of a framework for road concessions in Ghana.
The study focused on: Advising the Government of Ghana on options for introducing Private Sector Participation into the management, construction, rehabilitation and financing of its road network through appropriate ROT, MOT, BOT and DBFO structures; economic, financial and technical feasibility, Develop concessioning framework, Develop standard bidding documents
Public-Private Infrastructure Advisory Facility
2004
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Ministry of Finance and Economic Planning
The Ministry of Finance and Economic Planning of Ghana required the assistance of suitable professionals to advise on the dualisationof the 237km Accra-Kumasi Toll highway, through a PPP arrangement.
PwC advised on key aspects of the transaction including: Overall project management; feasibility studies; Construction and operational managements; Advising on the appropriate procurement of the project.
2008
2000
Ministry of Finance and Economic Planning
The Ministry of Finance and Economic Planningof Ghana required the assistance of suitableprofessionals to advise on the dualisation of the237km Accra-Kumasi Toll highway, through aPPP arrangement.
PwC advised on key aspects of the transactionincluding: Overall project management;feasibility studies; Construction and operationalmanagements; Advising on the appropriateprocurement of the project.
2008
Agenda
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Railway Consortium, Nigeria
PwC is offering Financial Advisory Services to theclient on the preparation of an updated financialmodel to reflect new information about theproject; an Information Memorandum to supportthe client in raising finance; the provision ofcomprehensive financial and advisory services toenable client reach financial close and complete allrelevant conditions precedent to unlock thefunding.
2012
Ministry of Roads and Highways,Government of Ghana
2004PricewaterhouseCoopers was appointed bythe World Bank to assist in the developmentof a framework for road concessions inGhana.
PwC provided transaction advisory servicesincluding; Options around introducingPrivate Sector Participation into themanagement, construction, rehabilitationand financing of its road network throughappropriate ROT, MOT, BOT and DBFOstructures
PwC was appointed by PPIAF to assist in the development of a framework for road concessions in Ghana.
PwC advised on the options for introducing Private Sector Participation into the management, construction, rehabilitation and financing of its road network through appropriate ROT, MOT, BOT and DBFO structures; economic, financial and technical feasibility, Develop concessioning framework, Develop standard bidding documents
Public-Private Infrastructure Advisory Facility
2004
Study on the design of the concession agreement for the privatisation; transferring to the private sector responsibility for particular aspects of port operations.
The scope of services for PwC included;Assessment of port requirements, Analysis of competing Ports, Tariff benchmarking analysisAnalysis of other support infrastructure needed for private sector participation
Government of Ghana
2008
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
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Property Investor
2012 The client required market and financialfeasibility study for the residential component ofa mixed-use development in Abuja, Nigeria.
PwC provided services which include marketresearch and analysis for residential sector,review of master plan and recommendations,supply and demand assessments, and financialanalysis for the project.
A hotel in Accra
2012
Group Company in Ghana
2012 The project involved the assessment of theproperty market in Accra for office andresidential accommodation which was expectedto feed into the client’s business plan to beincluded in a proposal to be submitted topotential lenders.
PwC advised on the project documentationincluding a review of the client’s plan for theproposed project. The scope of services include:
The client required a market and financialfeasibility study for a proposed mixed usedevelopment to be anchored by a 250-room hotelin the Central Business Districtof Accra, Ghana.
PwC conducted high-level market research andprovided an assessment of the alternativepossible components for the project whichinvolved analysis of the residential, lodging,retail, serviced apartments, and office marketsin Accra
2010
Government-Affiliated Holding Company
2012
Real Estate Developer, Nigeria
The project involved the provision ofconsultancy services for the development of ashoppingmall in Nigeria.
PwC was engaged by the Project Financecompany to design and develop the businessprocess model, organisational structures, jobdescriptions for key roles and the policies &procedures manuals.
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
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2010
Government-Affiliated Holding CompanyUpstream Oil and Gas Company, Nigeria
PwC was engaged by a Nigeria UpstreamPetroleum Company interested developing 2parcels of lands into both commercial andresidentialproperty.
PwC was mandated to carry out a feasibilitystudy into the Nigerian real estate andconstruction industry highlighting the marketand demand risks as they affect the proposedproject.
Mixed Use Devt., Benin
PwC was engaged to provide a review of a market and financial feasibility followed by capital sourcing for a mixed-use development in Porto-Novo, Benin. The project components comprised hotel, residential apartments, commercial offices, industrial park, and warehousing and storage.
The scope of services include: Market Analysis; Review of Feasibility Study; Financial Modeling; Project Finance
2012 2009
2010
Government-Affiliated Holding CompanyUpstream Oil and Gas Company
PwC was engaged by a Nigeria UpstreamPetroleum Company interested developing 2parcels of lands into both commercial andresidentialproperty.
PwC was mandated to carry out a feasibilitystudy into the Nigerian real estate andconstruction industry highlighting the marketand demand risks as they affect the proposedproject.
PwC was engaged to provide a review of a market and financial feasibility of setting up a crude oil refining facility in nigeria
PwC scope of services include: Market analysis; commercial analysis of feedstock yield, location analysis, feedstock contracting options, high level returns analysis
Indigenous Investment Company
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
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2010
Government-Affiliated Holding Company
Indigenous Hospital Indigenous Hospital
Health Regulatory Organization
Indigenous Hospital
The client sought to develop a 5-year growth strategy. PwC’s services included: Assessment of the healthcare industry in Nigeria to assess market size, growth trends and drivers, consumer behaviour and competitive landscape; Internal analysis of the hospital covering several areas including people, processes, systems and policies; Identification and assessment of various models for future operations; Support in identification of viable strategies to support the client’s growth aspirations
PwC was engaged to perform a reaccreditation of HMOs to determine their level of compliance with prescribed conditions and standards as well as proferrelevant recommendations that would strengthen the operation of the HMOs.
Services included: Review and update of the accreditation checklist; Assessment of HMO’s level of compliance in four major areas; Identification of gaps and areas for strengthening
PwC was engaged by a leading health care institution in Nigeria to provide advisory services towards articulating and financing its growth and expansion strategy.
PwC carried out an options analysis of one of the client’s assets and conducted a review of the client’s baseline business model, valuation and returns analysis. Other phases of the project would include examining and refining the client’s growth and expansion strategy and assisting the client to secure appropriate financing for the expansion program.
PwC was engaged to provide financial advisory services to a multi-specialist hospital in the pre-construction stage of developing a health facility.
PwC conducted a review of the client’s existing financial model and then went on to develop a clean build financial model and confidential information memorandum which was issued to potential investors and financiers.
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
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Telco Investment company, Nigeria
2014 A Telecommunications Investment companyintends to acquire the business units and assets of anational carrier in the Nigeriantelecommunications industry. PwC was engaged toassist with the entire acquisition process of theTelecommunication assets.
PwC provided Bid acquisition and advisoryservices to guide the acquisition of the nationalcarrier company
State Water Corporation, Nigeria
PwC in partnership with an engineering firmwas engaged by the corporation to provideTransaction Advisory Services for publicsector Water supply Scheme.Services included: Need, technical, socio•-economic, legal and commercial viabilityassessments, Initial environmentalexamination assessment, Preliminary riskand stakeholder assessment, Affordabilityand value for money assessment, PPP optionand financial analysis
To help meet the Millenium Development Goals(MDGs) in the water sector in 8 countries inAfrica, the EIB launched the Water ProjectPreparation Facility (WPPF) to fund technicalassistance for projectpreparationactivities.PwC provided the following services: Projectidentification and selection, Critical review ofsuccessful and failed past projects, Inventory ofon-going and proposed projects in each country.Design of potential projects, with emphasis onPPPs & identification of co-financiers. Pre-selection of projectsasper WPPFcriteria.
European Investment Bank (EIB)
2008Project Green, Nigeria
2014 The client, a Nigerian company that had equitystake in a Gabonese refinery wanted to conduct avaluationof their equity stake.
PwC was engaged to provide financial advisoryservice. The services provided include buildingfinancial projections, the valuation of the refineryand the stake of the Nigeriancompany.
2012
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
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PROJECT FIDDLE
Nig erian mortgage bank
seeking to restructure its bu siness
Serv ices Provided: Fin ancial modelling and
v aluation
PROJECT T RIBECA
Nig erian m ortgage bank
r a ising capital
Serv ices Provided: Bu sin ess plan, financial
m odel and capital raising
PROJECT CONCORD
Nig erian commercial
ba n king raising Tier 1 Ca pital
Serv ices Provided: Fin ancial model and
Ca pital raising
PROJECT GLOW
Nig erian commercial
ba n k requesting support for the valuation of a
su bsidiary for goodwill im pairment
Serv ices Provided:
Fin ancial model and Ca pital raising
PROJECT WINDSA IL
A Nig erian pension fund
a dministrator requiring fin ancial projections for
str ategic planning pu rposes
Serv ices Provided:
Fin ancial modelling
PROJECT LILA C
Nig erian property
dev elopment company r a ising capital
Serv ices Provided:
Fin ancial m odel and Ca pital raising
PROJECT CRYST AL
Nig erian microfinance
ba n k seeking to raise ca pital
Serv ices Provided: Fin ancial projections and
v aluation
PROJECT KA CHI
Nig erian health care
pr ov ider a ssessing the v iability of an intended
pr oject
Serv ices Provided: Fin ancial modelling and
commercial due diligence
PROJECT A ST ON
Nig erian a sset
m anagement company seeking an appraisal of
a n intended m erchant ba n king business
Serv ices Provided:
Fin ancial modelling
PROJECT ST YLE
PE firm seeking to invest
in a key player in the r etail industry
Serv ices Provided: Fin ancial model review
a n d commercial due diligence
Agenda
PwC
August 2016Confidential Information for the sole benefit and use of PwC’s Client.
Draft
Recent Financial Advisory Mandates in West Africa (2/2)
36Africa Singapore Business Forum 2016
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PROJECT WEST
Nig erian oil & gas
serv icing company r equ esting a valuation of
its a ssets
Serv ices Provided:
Fin ancial projections and v aluation
PROJECT RA NGER
Nig erian oil and gas
com pany requiring a ssistance for an IPO
Serv ices Provided: Dev eloped financial
sta tement projections
PROJECT CORA L
Nig erian oil & gas
serv icing company seeking an appraisal on
its investment
Serv ices Provided: Fin ancial modelling and
in v estment appraisal
PROJECT A T LANTA
Nig erian oil servicing
com pany requiring a fin ancial model for
r eporting purposes
Serv ices Provided: Fin ancial modelling,
v aluation and advisory su pport
PROJECT OWL
Nig erian Gov ernment
a g ency requiring our serv ices to appraise
in v estment projects
Serv ices Provided: Fin ancial projections and
bu siness plan
PROJECT DELT A
Gov ernment Min istry
esta blishing a dev elopment finance
in st itution
Serv ices Provided: Bu sin ess plan, financial
pr ojections and capital r a ising
PROJECT NA TO
Nig erian aviation
serv icing company r equ iring financial
pr ojections for a new bu siness idea
Serv ices Provided:
Fin ancial modelling and r a tio analysis
PROJECT ST A NCE
Nig erian a sset
m anagement com pany r equ esting a com pany
v aluation
Serv ices Provided:
Fin ancial m odelling and v aluation
Agenda
PwC
Contact Details:
Ian Aruofor
PartnerPwC | Deals AdvisoryDirect: +234 1 271 1700 Ext 47001Cell : +234 805 609 9667
Thank you
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