Sectors

Energy and Mining

AA ABG helps energy and mining companies address issues relating to volatile commodity markets and evolving regulatory frameworks. AA ABG energy and mining professionals understand and integrate local and global markets factors to provide insightful guidance that effectively addresses client requirements.

Dedicated focus in the Energy & Mining industry

• Oil and Gas Exploration and Production
• Oil and Gas Refining and Transportation
• Independent Power Producers
• Electric and Integrated Utilities
• Precious Metals and Mining
• Coal and Consumable Fuels

The continent has been reintegrated with the new discoveries of hydrocarbons highlighting a shift to new basins.

In recent years the outlook for the industry has improved as significant block discoveries of 300 million barrels of oil equivalent (boe) have been made across Africa. These discoveries can be categorized as such: (i) gas found in deepwater offshore East Africa (Mozambique and Tanzania) (ii) oil found in onshore East Africa (Uganda and Kenya) (iii) oil found in the West African Transform Margin (Ghana with further exploration potential in Cote d'Ivoire, Sierra Leone and Liberia); and (iv) oil in the pre-salt basins of Angola. All contributing to the almost 15 billion boe found in the traditional oil exporters of Nigeria, Angola, Libya, Gabon and Equatorial Guinea.

In terms of globally significant resource deposits split by country: Zambia and Morocco have copper; Ghana and Botswana benefit from gold and diamonds; Zimbabwe, Tunisia and Guinea boast iron ore reserves; Botswana and Zimbabwe dominate nickel, with Zimbabwe producing major coking coal quantities and South a major exporter of most of these commodities. Sub-Saharan oil exporters of course are Nigeria, Angola and Gabon.

Its important to note that as GDP increases, the low base of African agricultural and manufacturing exports now show growth – tracking the more established natural resource sector.

Banking & Insurance

With AA ABG and its affiliated managed interests in Francophone and Anglophone Africa, we are able to offer a deep knowledge of African micro and macro trends that also affect the world financial marketplace – a point of view that transcends credit and business cycles. In addition, the Group is located across a number of financial services segments and are well positioned to deliver cross-border and cross-sector guidance and investment opportunities to clients in whichever market they operate.

Dedicated focus in the Financial Services industry

• Commercial Banks
• Insurance
• Hedge Funds
• Private Equity Firms
• Mortgage Finance
• Pension Funds -

Insurance

We expect a positive real growth in Insurance premiums going forward as a result of increased competitive environment which has led to increased brand activities, product innovation, public awareness and sensitization of the benefits of insurance. Key countries like Kenya, Nigeria, Ghana, Namibia and Zambia have identified this sector as a key economic growth driver in their strategy framework.

There are clear signs of increased insurance penetration across Africa, strengthened by more African Banks distributing insurance products through partnerships with Insurance. AA ABG aims to be at the centre of this regional and market share penetration.

Banking

With the un-banked population still at a high of 60% in most African countries, deposit taking in Ghana, Guinea, Senegal, and Sierra Leone is still far off from their conservative peak and we expect there to be more growth.

As a transparent and secure Banking sector contributes to stable economic development, its clear that an upturn or a downturn in any of our preferred sectors will have magnified balance sheet implications, across the loan books in our various Banking interests. Additionally, the rising penetration of retail banking, SME banking and mortgages should begin to positively affect margins, with broad potential remaining for corporate banking and syndications

Our understanding of Africa's Banking Sector means we are able to guide Management Strategy in target Institutions growing their lending capacity across various lending types including retail, corporate mortgage and SMEs especially as we target Africa's unbanked. Our aim is to reduced debt to capital ratios and increase non interest income.

Real Estate & Infrastructure

AA ABG will work with companies in every link of the real estate value chain, from financiers to property managers to asset managers and operations supervisors. Through understanding each real estate division, AA ABG helps clients respond to individual needs while applying collective knowledge to client engagements.

Dedicated focus in the Real Estate industry

•  Real Estate Investment Trusts
• Hotel & Leisure Developments
• Residential Developments
• Corporate Real Estate Advisory
• Property Management Partnerships

The housing sector is connected to the broader economy through real, financial and fiscal links. The real impact on the economy is reflected through property investments and employment generated by the housing sector.

Africa's Mortgage and Commercial Real Estate Market is still nascent but characterized by Large Universal Banks offering Housing Loans and some Housing Organisations providing affordable Housing to Civil Servants through Government Schemes and PPP supported Commercial Developments. The Real Estate market is still growing with a re energized private sector driving demand for Home loans and Leisure and Entertainment Parks. Most Lenders still do not have the capacity to meet the shortfall in demand for Commercial and Residential Real Estate mainly due to their constrained Balance Sheet size – even in comparison to indigenous Banks.