Investing in the
future of North Africa
The North Africa region, represented by Egypt, Tunisia, Algeria and Morocco, enjoys favorable consumer dynamics. These dynamics include a young and rapidly expanding population, swift urbanization, rising income levels, and widespread adoption of digital technologies. These factors create a fertile environment for investment in growth capital. The region's youthful and growing population provides a large and diverse consumer base, offering numerous market opportunities. Urbanization drives new consumer demands, spurring business growth and fostering a hub for talent and innovation. Private equity investors find the region appealing due to these factors. Increasing incomes contribute to the growth of the middle class, generating demand across various sectors and making the region an attractive investment destination. The rise of digitalization and improvements in digital infrastructure unlock new markets like e-commerce and fintech, which offer significant untapped potential for investment. North Africa possesses several ingredients critical to fostering economic growth and prosperity:
Improving institutional quality: Institutions are broadly defined in this context to cover everything from well-defined property rights and fair tax systems to the consistent application of the rule of law.
Openness to trade: Openness to trade and FDI provides access to larger markets and new technology, and is consistently found to be a necessary condition in driving long-term economic growth.
Education: As economies grow rapidly, they require a steady supply of skilled workers, and more years of schooling are a prerequisite for sustaining economic development.
Macro stability: A largely stable macro environment supportive of economic development and more certain future returns with stable prices and incentives.
Infrastructure quality: Transport infrastructure, reliable electricity supply and, increasingly, internet access are important elements in ensuring ongoing development.
Labour force growth: A key component of economic prosperity is a growing and skilled labour force, able to deliver sustained output with increased productivity.
We have been investing in the future of North Africa for over a decade. Our investment thesis evolves around the emerging consumer in North Africa, supported by a young and growing population, rapid urbanization and rising incomes, resulting in a structural increase in consumption that is expected across both the consumer staples and consumer discretionary sectors, with industries such as education services, financial services, household products, packaged foods, and healthcare expected to benefit disproportionately given the demographics of the region. Within this dynamic and evolving growth context, we actively track a host of interconnected trends that help us identify and define our target investment sectors. These trends span across various industries, including but not limited to, consumer goods, healthcare, education, and financial services. By leveraging our deep understanding of these trends and our operational expertise, we are well-positioned to create significant value in our investments, ultimately delivering strong returns to our investors.