Cherae and I had a great time on New Rules Africa this week, covering:
- Zimbabwe established sovereign wealth fund
- Rocket Internet filed for IPO in Germany
- African Development Bank opened Young Professionals Program
Read the summary below to get up to speed on what we covered, and check out the show.
Zimbabwe Establishes Sovereign Wealth Fund
Last Tuesday, Zimbabwe’s Senate passed a bill that lays the groundwork for the country to establish a sovereign wealth fund – a tool used by countries around the world to maintain long term wealth and resist economic shocks. The African countries using the tool include Angola, Botswana, Senegal, Nigeria, Libya, Algeria, and Ghana. Countries like Uganda and Kenya are considering establishing their own funds with their new found oil resources. Let’s keep an eye on Zimbabwe’s fund as it is unclear what the structure of the fund will be and who will manage it. Countries like Nigeria and Senegal announced the managers of the funds pretty close to the establishment of the fund, and had a detailed governance structure.
Rocket Internet Files for IPO in Germany
Rocket Internet, the emerging market, uber-startup launcher is filing for an IPO on Germany’s stock exchange that would raise around $1.8B. For the past six years, Rocket Internet has launched emerging market copycats of some of the top internet brands in the US and Europe – Amazon, Paypal, and Zappos to name a few. In Africa, these include Jumia, Zando, HelloFood, and EasyTaxi among others. Rocket has absorbed a lot of criticism for just copying other business models, but is unapologetic about its business model and has raised more than $2B in venture capital since its founding in 2008. Jumia, Rocket’s flagship brand in Africa recently went under a management shift and has been relatively quiet after raising several millions in venture capital and building a 90,000 square foot warehouse in Lagos. Keep an eye out on the IPO and future Africa activity from the company.
African Development Bank Announces Young Professionals Program
The African Development Bank is recruiting young professionals, particularly women, to apply for its two or three-year rotational young professionals program. The bank will select 15-20 candidates who will be based in the bank’s headquarters in Cote d’Ivoire. The bank has been a critical part of the continent’s development, ensuring the contract negotiation skills of African countries, committing dollars to the combatting of threats like Ebola, setting up an infrastructure fund, among many other things. Apply. The folks that work there are talented and its a nice alternative to working at a place like the World Bank or IMF, if you are looking to work at an international development agency.
Preparing Cities for the Future
The Corporate Council on Africa is holding its annual infrastructure conference in the lead up to the World Bank/IMF Annual Meetings, and the focus is on building resilient cities on the continent as rapid urbanization continues to take place.
As cities continue their rise, Africa’s cities will increasingly have to figure out where these people will live, how to provide them with services, make sure they are able to move around, and the list goes on. Investors are paying more and more attention to the threat/opportunity in these cities. If these cities develop well, they could be hubs of consumerism, new ideas, innovation, you name it. If these cities do not develop well, we could see the failure of institutions, increased political unrest, and the list goes on here as well.
What else? What are some other interesting things that happened in business in Africa this past week?