Renaissance Capital to invest $2bn in Africa, keeps hiring

Moscow-based Renaissance Capital has one declared goal: becoming the leading emerging markets investment bank. The road to reach that objective goes through Africa, founder and Ceo Stephen Jennings firmly believes. RenCap continues to hire aggressively to grow its presence in the Continent and is planning to invest up to $2bn in the next three years.

Some African countries, like Nigeria, Liberia, Ghana and Uganda will grow at double-digit rates, at an even faster pace than booming Asian countries like India and China, according to Jennings. "We have expansion plans across the continent. I can easily imagine us investing a couple of billion dollars over the next three years," the RenCap Ceo says. "The continent will deliver the fastest growth, faster than Asia has ever done." The International Monetary Fund says that 7 out of the world's 10 fastest-growing economies will be in Africa.

Things have improved dramatically since 2006, when RenCap first started operations in Africa. Increased political stability, the continent's growing trade ties with Asian and Latin American emerging economies and its wealth of natural resources all combine to provide great opportunities for investment banking. "Political risk is coming down quite dramatically and government improving in sub-Saharan Africa," says Jennings.

RenCap is betting in particular on Nigeria, the continent's most populous country which has huge potential and, the Ceo believes, can overcome its challenges.

"I am very bullish," he says. "We see Nigeria as the next Brazil or Russia." RenCap analysts forecast a 15% growth for the local banking sector in 2011. Other experts agree. "We believe that now is a very good time to invest in Nigeria across a number of sectors," says Michael Lalor, director at Ernst & Young South Africa. "From an investment perspective, any risks - real or perceived - can be managed and are outweighed by the vast opportunities that exist in the Nigerian market."

RenCap employs around 120 people in six African countries but their number is constantly growing. In the last ten months the group has more than doubled its research team and now has 35 people dedicated to Africa coverage.

The latest high-profile hire is Nothando Ndebele as head of sub-Saharan Africa research. Ms Ndebele, a Zimbabwean, has worked in equity research for Deutsche Bank in Johannesburg, in asset management for Goldman Sachs in London and for Investec Asset Managers in

Cape Town and then joined Africap Microfinance Investment Company in Johannesburg.

"Nothando's experience and knowledge of the sub-Saharan markets combined with her asset management experience form a solid base from which she will develop and expand RenCap's research product offering," says David Nangle, head of equity research.