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This report was prepared by African Sunrise Partners LLC (ASP). ASP is an investment strategy firm dedicated to bringing private-sector capital to sub-Saharan Africa.

New: 68-page Insight—summary version here. Contact us to subscribe or purchase this report, or to discuss other African Sunrise Partners products and services.

Ethiopia Is too Important To Ignore. A 90+ million-strong population, untapped resources, and a government determined to build a larger economy mean that time spent now in building an understanding of how to operate in Ethiopia should pay off for long-term investors.

Recent Visit: Planning for Next Five Years. We returned to Ethiopia last month—what’s new? Government officials, businesses, and investors are looking ahead to new priorities in the next five-year Growth and Transformation Plan. Unleashing the power of the private sector, while boosting investment in value-added manufacturing, renewable energy, and agribusiness—with a push toward diversifying and increasing the value of exports—are likely to top the list.

Multinationals Already at Work. We visited distributors for names including Pepsi, Cummins, Otis, Volvo, Toyota, Komatsu, and GE. Where products, pricing, and service are lined up with local needs, demand far outstrips supply. Investment to boost output in agribusiness appears set to support stronger consumer spending in coming years. Financial and technology services—around core government-controlled firms—look like areas with strong potential.

Balancing Current and Future Needs. Critical sectors including communications and banking remain closed to foreign investors. Hard currency to pay for imports remains in very short supply, and domestic funding of infrastructure investment crowds out private-sector access to capital. We don’t expect significant policy shifts anytime soon—but it’s not too early for companies to assess potential demand, build brand positioning, and form local partnerships.

In Case You Missed It:  We recently sent around a Flash Update containing the initial set of recommendations put out by the President’s Advisory Council on Doing Business in Africa. Feedback/questions/ideas welcome.

Up Next: Nigeria, Ghana and Angola. We’ll be in Lagos, Abuja, Accra, and Luanda, Angola for two weeks beginning onMay 3. Let us know if you’d like to meet while we are in town or if you want to set up a call or meeting when we return.

Why Become an ASP Client? We Open Doors for Profitable Investment in Africa. We’ve made 30+ trips to Africa, have a seat on the US President’s Advisory Council on Doing Business in Africa, and bring deep knowledge of why Africa matters to international business. ASP’s 50-report research library, advisory services, and speaking engagements help our clients make better decisions for more profitable investments on the continent.

Now is the Time to Sharpen your Africa Strategy.  Even if you're not actively putting funds to work directly on the continent, this is the time to build your knowledge. If you run a global portfolio or operate a global business, Africa matters to you already. African markets are growing rapidly and the competitive dynamics on the continent may have broad repercussions for companies in different industry groups.

What Makes African Sunrise Partners Valuable to You?
  1. We get information directly from our own sources. 4-6 trips/year to Africa, over 30 trips since 2007.
  2. We bring a global perspective: 30 years’ experience in global equity research, extensive frontier and EM work, massive network of sources.
  3. Covering sectors that matter to global investors and companies: industrials/infrastructure/power, consumer, agribusiness, tech/telecom, financial services.
  4. We can save you time and money: our market intelligence offers hard-to-find information based on our own legwork. Commentary on public and private companies, local and multinational names.
  5. We are connectors. Need to talk to a source on a key issue? Looking for a local partner or insight into a particular market works? We have over 7,000 names in our database—let us connect you to people on the front lines of African business.
Learn more at www.afrsun.com.

Best regards,

Melissa Cook
Founder and Managing Director, African Sunrise Partners LLC
Member, US President's Advisory Council on Doing Business in Africa
+1 845 363 4622 (phone, mobile, fax)
Skype: MTCook650
cook@afrsun.com
www.afrsun.com

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