Economy
Why Global Businesses are Banking on Africa
Amid the COVID-19 pandemic, ever-changing lockdown regulations and travel bans for countries in sub-Saharan Africa, the continent has held firm with a positive outlook for its tourism and hospitality sectors. This has been further cemented by the increase in major global businesses either setting up shop in Africa or expanding further across the continent.
Tech hot spots for an expanding ecosystem
Zoho, the global technology company that offers the most extensive suite of business software in the industry, announced the opening of its South African office at the end of 2021 – the company’s flagship – in Cape Town.
“Zoho strongly believes in its growth being closely tied with the growth and development of the broader community that it serves, a strategy we refer to as ‘transnational localism’. As part of this vision, we’re focused on contributing to the creation of self-sufficient economic clusters across the world,” says Hyther Nizam, President MEA at Zoho Group.
In South Africa, Kenya, Nigeria and Egypt, Zoho offers its products in local currencies. Additionally, Zoho has hired individuals in all of these countries for customer-facing roles. And the company is committed to establishing partnerships that will aid local businesses in their digital transformation efforts.
SweepSouth, SA’s leading on-demand home services brand, recently expanded its Pan-African presence by launching into Egypt. Already operating in Kenya and Nigeria, they acquired Egyptian start-up Filkhedma – Egypt’s leading home services marketplace that operates across three cities and serves tens of thousands of customers with cleaning, maintenance and beauty services.
“Africa has massive growth potential for us as a company,” says Aisha Pandor, CEO and co-founder of SweepSouth. “We already operate in three key markets and the acquisition of Filkhedma means that SweepSouth will be one of a few African start-ups operating in the continent’s four key tech ecosystems of South Africa, Egypt, Kenya and Nigeria.
“Egypt has a strong and growing middle-class that has been underserved in the domestic home services arena, which can be said of many other regions across the continent, too. With a compelling economic growth track record and outlook, and an economy that has been resilient in the face of challenging times, it made sense for us to eye this market for our next big leap. Our presence there now primes us for further expansion into other parts of Africa and the Middle East.
“We are entering a rapid growth phase and executing on a number of other new country launches in 2022,” adds Pandor. “Having the Filkhedma team on board is particularly exciting as it’s an intra-African acquisition by two companies in the same vertical. This acquisition almost doubles our addressable market on the continent and enhances the products and services that we already offer.”
An African expansion plan
Ramsay Rankoussi, Vice President, Development, Africa and Turkey for Radisson Hotel Group, says that while the Radisson Hotel Group will continue to pursue organic growth underpinned by domestic and regional travel, the Group will also be exploring other routes through inorganic growth that may be slightly more unconventional and would include different types of partnerships, joint-ventures, co-branding and potential capitalistic approaches.
One of these – Radisson Individuals, a conversion brand that offers smaller hotel operators the opportunity to be a part of the Radisson family without losing their identity – already came to fruition in 2021.
“Africa holds immense potential across various segments and product types – from resorts and city hotels to serviced apartments and boutique offerings. The lack of funding, be it equity or debt, along with the high cost of capital remains the biggest burden across the continent.
“Inorganic growth will certainly help us to not only mitigate materialisation risks but should also unlock synergies and economies of scale with other local and regional chains to the benefit of local communities,” he says.
As such, the Radisson Hotel Group has set its sights on Africa, boosting its African portfolio with 14 signings and five hotel openings in 2021, setting it on a positive path to reach its ambitious goal of more than 150 hotels by 2025.
A recognised business hub
South African serviced office provider The Business Exchange (TBE) recognised the Mauritian potential and in April 2021, the company launched its second investment opportunity in Mauritius – a sectional-title serviced office space.
Beyond the white beaches and get-away-from-it-all lifestyle, Mauritius is increasingly recognised as one of the hottest business hubs on the continent. In fact, the island paradise is currently the highest-ranked economy in sub-Saharan Africa, according to the World Bank’s Ease of Doing Index.
“Mauritius presents a sound environment, both politically and economically. Major international brands, including Samsung, Broll, Expedia and NBA (North America’s National Basketball Association), have already based themselves at our serviced office space there, which speaks to the potential of the location as a foremost business hub,” believes David Seineker, TBE founder and CEO.
Mauritius’s proximity to South Africa – it’s a mere four-hour flight from Johannesburg – is a further advantage, as the City of Gold remains the continent’s foremost business hub. Mauritius is also perfectly positioned en route from Asia and the Middle East to the tip of Africa, making it ideal for expansion into Africa as well as from Africa to the rest of the world. While the strategic relevance of the location was key to TBE’s expansion plans, others look for opportunities in regions that face the same challenges as in the business’s key operational area.
Remote working made easy
Cheapflights, a global travel search site that compares flights, hotels and rental cars, reports that searches from South Africa to the rest of the continent were up 67% on average between September and December last year compared to the same period in 2019. Zimbabwe, Tanzania, Mauritius, Namibia and Mozambique were the most searched countries within the region.
Additionally, the site recently also launched its Work from Wherever Index, which provides travellers looking to work away from home or while on vacation a definitive list of the best countries that are easiest to work from while enjoying a new country.
The results of the Index are based on popular searches made on the Cheapflights site as well as on how well each country scored across six categories. Nigeria ranks 95th globally and 14th amongst countries in the Middle East and Africa region, with its highest scores in the categories of price, travel and weather.
Mauritius, which ranked fourth globally, beating out many European heavyweights, topped the ranking for the Middle East and Africa. The island nation offers great weather, low crime rates and a fairly low cost of living in addition to a remote work visa (also called a digital nomad visa), which is a travel authorisation for on-the-go workers, allowing them to work independently during their stay in a country.
Other African countries that made the list include Seychelles at number 26 globally and number 2 in the region; Réunion (at number 69); Kenya and Tanzania (ranked 80th and 81st, respectively); and Tunisia (ranked 84th); amongst others.
The Work from Wherever Index, as well as the increase in flight searches to the continent, might be additional indicators of renewed business and growing confidence among travellers.
By Aduragbemi Omiyale
The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has expressed worry over plans by the administration of President Bola Tinubu to spend about $11.6 billion on debt servicing.
In a post on his social media platform on Monday, the opposition politician criticised this move, saying it is not good for the country.
He also said this action “should concern anyone interested in the country’s economic future and long-term development.”
The former Governor of Anambra State kicked against the penchant of the government to borrow from various sources without anything to show for it.
“There is nothing inherently wrong with borrowing when it is guided by prudence and directed toward productive investment, he noted, stressing that countries such as Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore, and Indonesia are all heavily indebted, yet their borrowings are largely channelled into education, healthcare, infrastructure, and innovation – sectors that generate long-term economic returns and sustain repayment capacity.”
According to him, “despite high debt levels, their obligations remain more manageable because they are tied to measurable productivity.”
He said, “Nigeria’s situation, however, is markedly different. A huge proportion of past borrowing has been directed toward consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness.”
“It is also important to note that a huge portion of the debt currently being serviced was accumulated under the Tinubu administration itself, while borrowing has continued at a significant pace. The administration’s recent external borrowing alone includes about $6 billion (from First Abu Dhabi Bank in the UAE—$5 billion, and UK Export Finance via Citibank London—$1 billion), a further $1.25 billion under consideration from the World Bank, and an additional $516 million arranged through Deutsche Bank, bringing the latest known external loan commitments to roughly $7.8 billion. In addition, domestic borrowing through monthly bond issuances continues to add to the overall debt stock,” the businessman also stated.
“Against this backdrop, Nigeria’s 2026 budget shows that health is N2.46 trillion, education is N2.56 trillion, and poverty alleviation is N865 billion, giving a combined total of about N5.885 trillion for these three critical sectors.
“By comparison, debt servicing at about $11.6 billion (approximately N17–N18 trillion, depending on exchange rate assumptions) is almost three times higher than the total allocation to health, education, and social protection combined. This imbalance highlights a troubling fiscal reality in which debt obligations increasingly crowd out investment in human capital and poverty reduction.
“Moreover, even within the limited allocations to these sectors, funds may not be fully released, and a significant portion of what is eventually released could be misappropriated,” he further stated.
Mr Obi said, “The central issue is not borrowing itself, but whether borrowed funds are being converted into measurable productivity, inclusive growth, and improved living standards. Without this, debt servicing shifts from being a temporary fiscal obligation to a long-term structural burden that constrains development and deepens economic vulnerability.”
By Adedapo Adesanya
Pathway Advisors Limited, an issuing house and financial advisory firm, has announced the successful completion of the Series 2 Commercial Paper issuance for Veritasi Homes & Properties Plc.
The Series 2 offer, issued under Veritasi Homes’ newly registered N20.00 billion Commercial Paper Programme, raised N16.76 billion, significantly above its initial N12.00 billion target on the back of strong institutional demand.
This issuance builds on the company’s track record in the Nigerian debt capital market and follows the recently concluded N10 billion 3-year 20 per cent Series 1 Fixed Rate Bond Issuance, further reinforcing investor confidence in Veritasi Homes’ strong credit profile.
The 364-day tenor instrument attracted robust participation from a diverse pool of institutional investors, underscoring sustained confidence in the Company’s financial strength, operating model, and governance standards.
Commenting on the deal, the Founder/CEO of Pathway Advisors Limited, Mr Adekunle Alade (MBA, FCA, M.CIod), noted that the outcome further validates investor appetite for well-structured transactions in the Nigerian capital market.
“The strong oversubscription speaks to the market’s confidence in Veritasi Homes’ performance, governance, and repayment track record. We are pleased to continue supporting issuers with strong fundamentals in accessing efficient funding.’’
He further highlighted that Veritasi Homes’ consistent market activities since 2022, including successful issuances and full redemption of matured obligations, continue to strengthen its reputation among institutional investors.
“Pathway Advisors Limited remains committed to maintaining its leadership position within Nigeria’s capital markets through the origination and execution of transformative, value-driven, and commercially viable transactions by deploying innovative financial solutions and facilitating strategic capital formation across critical sectors.
“We are committed to supporting credible corporates in accessing efficient short-term and long-term financing solutions within the Nigerian capital market,” he said in a statement on Monday.
Speaking on the transaction, the Managing Director/CEO of Veritasi Homes & Properties Plc, Mr Nola Adetola, described the outcome as a strong endorsement of the company’s fundamentals.
“This result reflects the resilience of our business model, our growing market reputation, and the continued trust of the investment community. We are grateful to all institutional investors for their confidence in Veritasi Homes.”
He added that the proceeds from the issuance will be deployed to support the company’s working capital requirements, enhance liquidity, and complete the ongoing development activities across its real estate portfolio.
Mr Adetola also commended Pathway Advisors Limited for its advisory and arranging role in the successful execution of the transaction.
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has approved the transition to the T+1 settlement cycle for capital market transactions from June 1, 2026.
This is coming some months after Nigeria moved from the T+3 settlement cycle to the T+2 settlement cycle.
The T+ settlement cycle is the number of working days required to complete a capital market transaction, such as the trading of securities, shares, and others, from the first day the trade was executed by an investor.
In a notice on Monday, the SEC, which is the apex capital market regulator in Nigeria, said it was authorising the new system to “promote an efficient, fair, and transparent capital market.”
Under the new arrangement, equities and commodities traded by investors at the market would be cleared and settled by the Central Securities Clearing System (CSCS) within one day.
The agency noted that the migration to a T+1 settlement cycle forms part of its ongoing market modernisation initiatives aimed at enhancing market efficiency and strengthening risk management. reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.
“Accordingly, all eligible trades executed in the Nigerian capital market shall settle one business day after the trade date (T+1),” a part of the statement noted.
It was stressed that “Friday, May 29, 2026, shall be the final trading day under the existing T+2 settlement cycle. Trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026. All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.”
SEC tasked all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other relevant stakeholders to take all necessary measures to ensure full operational readiness and compliance with the new settlement framework.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” it further stated, promising to continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition.
The regulator said it remains committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern. resilient and globally competitive Nigerian capital market.
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