Why Africa?

African Growth

Africa is set for exponential growth for the rest of the current century, on a similar scale that China has experienced over the last 40 years. Africa is forecast to grow to 40% of the global population by 2100 as compared to 18% today. In 2020, 5% of global GDP was derived from Africa this is forecast to increase to 40% of global GDP by 2100. With the growth projected for Africa for the rest of this century there is a significant need for the international and pan African capital markets services that the Group will provide.

Urbanisation & Population Growth

Global population growth is forecast to climb from 8 billion people in 2023 to 9.6 billion by 2050 (Africa population forecast to grow from 1.48 billion in 2023 to 2.5 billion by 2050). Urbanisation which drives infrastructure demand is projected to grow from 4.6 billion people in 2023 to 6.5 billion people living in cities by 2050 (African urbanisation forecast to grow from 650 million in 2023 to 1.2 billion by 2050). With significant urbanisation and population growth projected for the rest of this century there is a significant need for the international and pan African capital markets services that the Group will provide.

Transition to Net Zero by 2050

The energy transition is targeting net zero by 2050, currently 80% of primary energy is supplied by fossil fuels, this will have to reduce to 10% of primary energy in order to meet net zero by 2050. In addition to the transition increased population and urbanisation will increase energy demand by 74% by 2050. In 2023 4,662 GW of energy was supplied by renewables and nuclear, this will have to increase over 9 times to 42,345 GW 2050. Current global power sector investment of $1.3 trillion will need to increase to $2.7 trillion per annum to meet Net Zero by 2050. With significant growth projected for the energy sector in order to meet net zero targets there is a significant need for the international and pan African capital markets services that McFaddens Capital will provide.

Our Strategy for African Development

The first part of the Group’s expansion strategy will be building out its market intelligence unit which is focused on Africa, the energy transition and infrastructure. The second part of the Group’s expansion strategy will be on growing its capital markets and advisory business by entering into joint ventures in targeted underserved countries in Sub-Saharan Africa with local partners. The third part of the Group’s expansion strategy will be to establish a bank that can service its key areas of focus.

Clear growth path for proprietary investments business. The Group recently entered into a joint venture with a sovereign advisory business that is focused on public private partnerships with governments in Sub-Saharan Africa. The initial partnerships are focused on inclusive resource development and are projected to show significant returns for the Groups proprietary investing business over the short and medium term.