AFRICAN MERGERS/ACQUISITIONS STRENGTHEN INDUSTRY.

In support of the trend toward business consolidation in sub-Saharan Africa, a new breed of companies that offers mergers and acquisitions expertise is emerging. The demand for such services is still relatively small in individual nations, and for that reason such companies normally operate at the regional or continental level.

Few African consultants have strong acquisitions and mergers experience, but the African Alliance is working to develop a cadre of experts based there. In re-cent months, African Alliance Botswana has been able to provide advice in several domestic and cross-border transactions between national and foreign companies.

African Alliance acted as corporate advisor to the Automobile Association of Botswana in the sale of 26.5 percent of its ordinary shares to MRI Botswana. African Alliance Botswana also acted as corporate finance advisor to the Namibia Group when it acquired all of the shares of capital of Bolux Milling, and 100 percent of the Sefalana Milling Group.

As small companies fall by the wayside or join forces, African consulting groups will play an increasingly important role by building on their knowledge of the domestic market. In addition to serving in an advisory capacity, such companies are also in a position to secure the financing necessary to make African business alliances a reality.

SOURCE: "African alliance in corporate finance coup," The Reporter, Gaborone (25 May 2001).