Having listed five companies on AIM with an Africa focus Kerman & Co LLP continue to build on that African experience. Africa is one of the continents which has been least affected by the credit crunch as many African countries have regulations which prevented them from investing in the so-called 'toxic' financial products. The International Monetary Fund (IMF) takes a similar view and says there is no systemic risk to any African country in terms of banking. The consequence of this is that there is scope for the use of local debt and structured finance in some of the countries in which Kerman & Co’s AIM and unlisted clients operate meaning they have been able to access those funds to continue their growth and expansion plans without necessarily having to return to the Western equity markets for further funding.
Some recent African transactions in which Kerman & Co have been involved include:
Kerman & Co advised a long-standing AIM listed client on a number of projects in the hotel and leisure sector including the financing of a hotel refurbishment and redevelopment in the Democratic Republic of Congo involving Southern African banks and European and DRC contractors. The acquisition of a luxury hotel in Zimbabwe and the negotiation and drafting of the subsequent hotel management contract with a local hotel operator.
In the technology sector Kerman & Co have acted for a client acquiring an electronic funds transfer system that enables automated transfers of bulk payments for large corporate operations. Telecommunications, and in particular mobile and satellite communications, continue to grow in Africa and Kerman & Co have acted on a number of transactions including the acquisition of a stake in a mobile operator in Southern Africa and the roll out of an electronic point of sale network.
In the infrastructure sector Kerman & Co have acted on behalf of the developer in all aspects of the expansion of a port in West Africa and are assisting in the due diligence of the review of a number of similar port operations in sub – Saharan Africa.
In the natural resources field, Kerman & Co has recently advised clients on the high profile acquisition of a natural gas project in Cameroon, as well as disposal of significant oil & gas projects in Nigeria. Kerman & Co has also advised on the disposal of uranium projects in Niger, as well as the acquisition of uranium interests in South Africa. In recent months, Kerman & Co has assisted clients with due diligence enquiries in relation to potential mining opportunities in Sierra Leone, the Democratic Republic of Congo, Rwanda and Namibia.
Kerman & Co are excited by the prospects for continued growth in Africa as all indications are that with the stability that comes with the steady democratisation of governments so the economic and business opportunities will continue to develop.
