Catalyst strategies
It is vital to keep an open mind and scour opportunities on the continent on a country-by-country level.
Africa is often viewed as monolithic while, in truth, there is diversity in the economic landscape, ways of doing business, and opportunities. It is thus important to find strong ‘local’ partners like AFC who have a deep understanding of these dynamics to enable investors to do more. The heart of it is tracking trends and providing flexibility for liquidity to play across the capital structure. Investments in intermediaries such as AFC through equity and lines of credit also provide exposure to the continent while taking the credit risk of highly rated entities. AFC is A3 rated by Moody’s, for instance, the second highest rated entity in Africa.
