Pipeline Project

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Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

Disclaimer

Barak Fund Management will not be liable for any special, indirect, incidental, consequential or punitive damages or any damages whatsoever, whether in an action of contract, statute, delict (including, without limitation, negligence) or otherwise that relate to the use of this website. All information contained in this website pertaining to products and services and their terms and conditions, is subject to change without notice.

Although care has been taken as to what is contained in this website, no attempt has been made to give definitive or exhaustive statements of law or any opinions on specific legal issues and no representation is made or warranty given that the information is complete or accurate. This website does not constitute or offer legal or other advice and you should not rely on it as such advice.

Past performance is no guarantee of future returns and the fact sheets provided are for illustrative purposes only. The value of investments and income that are dependent on the performance of underlying assets or other variable market factors may vary from time to time. Investors must take cognisance of the fact that all the information provided are of historic nature.

Use of the website is entirely at the users own risk. Anyone requiring advice on any of the matters referred to herein should consult lawyers or other professionals familiar with the appropriate jurisdiction and legislation.

This Site contains information from Barak Fund Management and about the investment Funds it advisers. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy. The distribution of information contained on this Site and the sale of shares in the Funds may be subject to legal or regulatory restrictions in certain countries in which users are resident or of which they are citizens.

This Site and its contents are being made available for the convenience of the present Investors of the Funds and such other persons expressly authorized by Barak Fund Management (“Authorized Persons”) for information purposes only, provided such Investors and Authorized Persons are not prohibited by any applicable law of any jurisdiction from receiving such information. Persons accessing this Site are therefore required to inform themselves about and observe such restrictions.

Barak Fund is an authorised financial services provider.

Data Room

To access detailed information regarding our funds simply provide your details below, specify your interests and our team will contact you.

01

INVEST IN AFRICA: OPPORTUNITIES FOR GROWTH

Africa remains a vast region of uncorrelated, risk-adjusted investment opportunities

Africa’s Growth in Context

Why Africa will provide the growth going forward

With a wealth of natural resources, developing infrastructure, and improving business environment – in addition to a working population of 600 million, set to double by 2040 – Africa has emerged as an attractive investment destination and a key market for trade. The premium for investment is ripe provided an asset manager possesses the skills and experience to take advantage of this business environment, and this is exactly where Barak has positioned itself. However, post-crisis regulation and the resulting trade finance gap is halting its progress.

The African Development Bank estimates this African trade finance gap to be between US$110 – 120 billion, leaving many trade-reliant companies in Africa of all sizes in dire need. Hardest hit are the SME companies within the continent, many of whom largely contribute to the functioning of Africa’s smaller countries’ economies. Barak truly believes the rate of return on its investments in Africa, from its historic short-term activities to its looking ahead at longer-term strategies, will continue to abound and the Barak Team remains committed being the leading alternative financier in the region.

  • 6/10

    SIX OF TEN ECONOMIES FORECAST TO GROW THE MOST IN 2018 AND 2019 ARE IN AFRICA

  • 2040

    WORKING POPULATION OF 600 MILLION SET TO DOUBLE

  • 2050

    World’s leading consumer market

  • 50%

    of africa’s workforce is under the age of 20

Key points of business

Key points of business A MORE TRANSPARENT INVESTMENT ENVIRONMENT

Barak Fund Management has realised that doing investment in Africa has required extensive due diligence on the continent to understand the opportunistic landscape of the investment environment.

  • Rising GDP

    Africa is the second-fastest-growing region in the world. We believe that the rate of return on investment is higher than anywhere else in the world.

  • Huge Appetite

    Africa is now in the age of consumerism with the prediction of being the world‘s leading consumer market by 2050. This provides 30+ years to ensure investments have the maturity time to peak.

  • Doing business in Africa is now easier

    Home to more international private firms due to the increasing adoption of seamless business policies, lowered corporate taxes, and strengthened regulatory and legal systems in some African countries.

  • Largest, youngest workforce

    Africa is endowed with the worlds youngest population, which offers the continent a chance to reap a demographic dividend by using its young workforce to boost economic growth.

  • Rising technology

    Africa has leapfrogged into the digital age, sustained by low internet rates, increasing mobile penetration connectivity and mobile apps, which are reshaping youth culture and creativity.

  • Traditional Liquidity Constraints

    Banks are highly risk averse and thus proving difficult for borrowers to find an avenue of financing that is easy to come by. Alternative financiers in Africa are operating in a niche market.

Growth in Context

The importance of Portfolio Diversification: Bank’s Average Non-Performing Loans (NPLs) Ratio by African Sub-Regions. As Barak has grown its overall assets under management across Africa, so has it diversification grown to extend to primary regions of activity including sub-Sahara Africa, East, West and Central Africa. Growth has extended to deal origination offices in South Africa, Kenya, Ghana and Ivory Coast.

4%
6%
7%
10%
12%
Southern Africa
Eastern Africa
Central Africa
Northern Africa
Western Africa
Development
  • Africa
  • 17% 66.0%
  • Asia
  • 40.1% 31.6%
  • Eastern Europe
  • 41.5% 26.8%
  • Latin America
  • 35.0% 41.6%
0%
50%
0%
Minor Obstacle
Major Obstacle

Projected to Outperform Asia in GDP Growth

The Extent to which access to Trade Finance forms an obstacle to a Company’s Exports, broken down by region.

problematic factors for doing business in sub-saharan africa

Barak has identified that through a robust, experienced and extensive due diligence process as well as maintaining an on-the-ground risk-management structuring and presence in Africa, the above risk factors of doing business in Africa are largely mitigated against.

The Barak investment team has built of years of knowledge to approach all investment opportunities with keeping an open mind toward every possible risk factor on the continent.

Development
  • Access to finance
  • Corruption
  • inadequate supply of infrastructure
  • inefficient government bureaucracy
  • tax regulations
  • Tax rates
0%
5%
10%
15%
20%

Overview

BARAK’S LARGE OPPORTUNITY SET

The current emerging market environment and investment landscape in Africa has generated multiple opportunities for Barak since 2009, and is projected to continue to scale in the future.

Increasing global demand for farmland

Competition for land is likely to grow as food security becomes a priority for governments around the world.

Demand for agricultural products continues to grow significantly in local African markets and other emerging markets as populations grow and standards of living rise.

Lack of sophistication and transparency

Many local commodity assets are undervalued because of the lack of pricing transparency.

General misconceptions regarding the level of political and economic risk for the continent as a whole.

Africa offers untapped supply

Commodities are nearing price levels close to production parity, shifting focus to developing markets for future production.

Africa offers more than half of the world’s unused, agriculturally suitable land; by some estimates, only 45-50% of the continent’s potential arable land has been cultivated.

The World Bank’s projected industry size for agriculture and agribusiness in Sub Saharan African by 2030 is USD 1 trillion, compared to USD 313 billion in 2010.

Poorly serviced market

Post-2008, large banks pulled out of the market as they viewed Africa as uniformly high-risk.

Fragmented markets of smaller growers and traders exist across multiple countries.

Many businesses are too small to access larger, traditional lenders, and if they do, they often encounter a higher cost of capital or cannot gain credit approval.

Increasing demand for infrastructural development

Africa has seen increased Foreign Direct Investment from numerous sovereign institutions and investors in the past two decades, and this demand continues to rise. Developmental Finance Institutions continue to show heightened interest, as well as the increased financing and on-the-ground presence of China.

For more information on investment opportunities

Barak has built up a strong and ever-growing base of Fund investors across a wide range of regions globally. The Barak Investor team would love to hear from you.