I stumbled on this article this morning written by Bill Hinchberger from the African Leadership Academy; and thought it was very informative but controversial at the same time - especially with the mention of Carlyle Group which is owned by two of most controversial families in US and middle East history. Adding to that are the shortcomings of Private Equity funding used as a strategy to alleviate the poor banking system of Africa. Here is what Bill Hinchberger had to say in her article. What is your take in this; is private equity really the way forward especially when the majority of firms in Africa are SMEs or small scale entrepreneurs who all compete in an informal market? Who are the private equity helping? mostly it is all subsidiaries of global companies in Africa.
According to Bill Hinchberger, Africa is growing, and African companies need cash to expand. Investors want in on the action, especially given low returns in many other parts of the world these days. But with few stocks and bonds, and scant liquidity for those out there, how do investors get a foothold? And how do African firms access much-needed cash?
