African clients who look for financing
investors currently are keen to find firms in the FMCG (fast moving consumer goods) sector. We are therefore particularly interested to be mandated by firms established in this sector. They should have a strong market position, a profitable history, a need for capital to expand, and ambitious objectives. As a general trend in many developing economies, local FMCG competitors, when well managed and endowed with the right vision, tend to gain ground compared to the subsidiaries of multinational brands. There is no reason why this cannot be achieved by African firms. We will support them on their course.
TL Management GmbH likes agriculture as a business suited to promote Africa economies, and the well being of the people: unfortunately, few firms in this sector operate in a manner where professionally managed corporate development, and the financing to support it, are a realistic option. We wish to encourage both African businessmen as well as European firms to evaluate and exploit opportunities in the agricultural sector. This is not limited to farming. Transport, storage, trade and the supply of farm consumables are an indispensable part of a viable and internationally competitive agricultural sector.
Funding is available for energy projects, particularly in the renewable sector. However, project development is very challenging, as financiers will only move into well prepared projects where financial risks, through appropriate PPA agreements, public policy, permits secured, a stable infrastructure etc. are under control and rewarded through appropriate returns. But project which meet the hurdles of such requirements should have little difficulty to get funding.
Investors considering to invest in Africa
- TL Management GmbH seeks to balance its portfolio of mandates to include a higher portion of European firms considering to invest in Africa, seeking advice and support on it, and to get professional help in accessing the numerous sources of finance, who are at least as willing to work with partners from developed economies as with local ones.
- There is one business where TL Management GmbH tends to have more mandates who seek funding than investors willing to put their money into it, which is property and property development. In economies often depending on a few commodity exports, business cycles can be more pronounced than in more balanced economies. Such risks touch the property sector. But, apart from this, many African states have far more stable institutions than they had a generation ago, and property investment, in countries with growing populations AND growing per capita incomes, tends to be a fairly safe long term bet.
We encourage the numerous global investors into property - putting millions, and, in some cases billions of $ into a limited number of first world "hot spots" - to include Africa into their agenda and to start investing a small share of their total budget there.
Trade finance and consulting mandates
No general rule what we particularly seek. Please don't hesitate to ask.