Spear Capital’s Soderberg on what makes Africa an attractive investment destination

Norwegian businessman Martin Soderberg, a partner at private equity firm Spear Capital, has found a love for doing business in Africa, citing unique investment opportunities not readily available in Europe. Soderberg's journey into African markets began unexpectedly after a trip to Zimbabwe in the late 90s captivated his attention and led him to pivot his career towards the continent. With over two decades of experience navigating Africa's diverse investment landscape, Soderberg sat down for an exclusive interview to discuss what makes Africa an attractive destination for foreign investors. Soderberg highlighted how Spear Capital has strategically focused its investments in southern Africa, particularly in countries like Zambia, Malawi, Zimbabwe, and South Africa. The firm's decision to narrow its scope to these regions was influenced by Soderberg's extensive network and experience in the area, believing that there is less competition and greater potential for growth in these markets as a smaller fund. When discussing the sectors Spear Capital targets, Soderberg pointed out their interest in manufacturing, processing, import substitution, education, healthcare, and the food industry. The firm typically invests between two to six million dollars per project, prioritizing small and medium-sized enterprises with proven concepts and profitable operations. With the recent establishment of the Africa Continental Free Trade Area, Soderberg sees even more opportunities on the horizon. He emphasized the importance of stability and predictability in the markets they enter, acknowledging the challenges posed by political instability in certain African countries. Despite these hurdles, Spear Capital has built an extensive pipeline in Zimbabwe and continues to explore opportunities in South Africa. Soderberg stressed the need for clarity and consistency in regulatory frameworks to attract foreign investors. By providing a conducive environment for businesses to thrive, countries can signal to investors that they are open for business and committed to fostering a welcoming investment landscape. As Soderberg shared insights from his years of experience in African markets, his advice to regulatory authorities was clear: focus on creating a stable and transparent environment that instills confidence in investors. By fostering a culture of openness and reliability, countries can enhance their appeal to foreign investors looking to contribute to the local economy. In conclusion, Martin Soderberg's journey into Africa's investment landscape serves as a testament to the opportunities that await those willing to explore and invest in the continent. With a strategic focus on southern Africa and a commitment to partnering with promising businesses, Spear Capital continues to make its mark in the region.