KNOWLEDGE & INSIGHTS
Rwanda is an attractive investment destination with the right macro and socio economic fundamentals in place. However, micro, small and medium sized (MSME) businesses still struggle to access the right type of capital and technical expertise from private commercial investors. There is an obvious financing gap and a mismatch of expectations between MSMEs and private commercial investors. Could Blended Finance be used to bridge this financing gap effectively and ultimately accelerate the growth of the MSME sector in Rwanda?
The last three years of Brexit uncertainty have massively slowed down M&A activity from UK corporates into Africa. Historically, UK acquirers account for around 10% of deal values in Africa, but in 2019 this plummeted to just 2%. But will UK acquirers turn their attention back to Africa now that the terms of Brexit have finally been agreed?
The overall slowdown in deal activity in Africa in 2018 was primarily driven by a notable fall in inbound capital flows into the continent from international acquirers, with just US$16bn worth of deals recorded in 2018 compared to US$22bn in 2017. In particular, deal flow from UK acquirers dropped 54% compared to 2017. Could the "Brexit effect" be a key factor at play here?
Simply put, commercial due diligence (CDD) is the analysis of the external environment in which a company operates in order to assess its commercial attractiveness. This includes validating a company’s business plan and future growth prospects in the context of the overall environment in which it operates.