Alpen Capital eyes Africa’s micro-financing sector

Alpen Capital, an investment banking advisory firm, is setting its sights on Africa with ambitious plans to work with up to ten countries on the continent across three trailblazing sectors. In a recent interview with CNBC Africa, Rohit Walia, the Chairman of Alpen Capital Management, discussed the firm's expansion and investment strategy in Africa. Walia shared that Alpen Capital began exploring opportunities in Africa about four to five years ago, starting with countries like Kenya, Tanzania, and Ghana. Over the years, they have expanded their reach to eight or nine countries, with a focus initially on financing financial institutions before moving on to working with corporates. So far, they have successfully completed transactions in Nigeria and Kenya, with ongoing projects in Tanzania. When asked about the attractiveness of Africa as an investment destination, Walia emphasized the potential for contributing to the upliftment of the general population in these countries. He expressed optimism about the firm's prospects in Africa, stating that they plan to expand their presence to nine or ten countries in the coming years. The interview touched on the challenges of language barriers in francophone Africa, where French is more commonly spoken. However, Walia noted that overall, the banks and institutions they have partnered with in Africa have been efficient and clear in their objectives. In terms of investment trends, Walia highlighted a significant appetite for food and agriculture businesses, particularly from investors in the Middle East. Additionally, there is interest from Indian investors in sectors like biscuit manufacturing and cosmetics in African markets. Alpen Capital's focus sectors in Africa include financial institutions, logistics, green energy, and pharmaceuticals. The firm aims to make a positive impact on the environment and society through its investments while also ensuring profitability. During his visit to South Africa, Walia met with several large corporates, expressing confidence in the potential for future transactions in the country. He explained that Alpen Capital had delayed exploring opportunities in South Africa due to the perception of it being a developed economy, but recent visits and interactions with local businesses have sparked interest in the market. Looking ahead, Alpen Capital plans to continue identifying investment opportunities based on their clients' interests and research. Transactions typically take between seven to 14 months to complete, and the firm expects to announce several new deals in the next 18 months. When asked about global trends in emerging markets, Walia emphasized the importance of funding microfinance institutions for their impact on national economies. Alpen Capital has experience funding microfinance institutions in countries like India, Bangladesh, and Sri Lanka, with plans to explore similar opportunities in Kenya and South Africa. In conclusion, Alpen Capital's foray into Africa's micro-financing sector represents a strategic move to leverage growth opportunities across key sectors while making a positive impact on local economies. With a focus on sustainable investments and impactful ventures, the firm aims to play a significant role in Africa's economic development.