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Africa and the Middle East: April 2001

South African private equity growing, despite troubles and Israel to benefit from biotech boom...

South Africa continues fragile expansion
Private equity in South Africa enjoyed modest growth in 2000 but dismal interest in listings on the Johannesburg exchange are overshadowing prospects for further improvement. This is according to a survey compiled by KPMG for the South Africa Venture Capital and Private Equity Association. Funds under management rose to 33. R1bn($4.1bn) in 2000 from R31.5bn in 1999. Roughly 60 per cent of this total was accounted for by the captive funds owned by the country's bigger banks and government and aid agencies. A total of R3.4bn was invested in 264 companies in 2000, up from R2bn in 227 companies in 1999. Despite the growth in funds and investment, private equity firms are becoming increasingly concerned about exit routes now that plans for a new capital gains tax have almost eradicated interest in companies listing on the country's stock market.
PrivateEquityCentral.net 9.4.01

Israel well placed to profit from biotech growth
Israel is well placed to profit from the anticipated boom in the biotech industry, according to a report in the Wall Street Journal. Although the country's biotech industry only clocks up about $600m in annual sales, less than 1 per cent of the country's GDP, it could be worth as much as $3bn within the next 10 years, says Adi Alon, director of the Tel Aviv office of consultancy form Monitor Co. The bulk of the country's biotech sector is focused on drug development.
Wall Street Journal Europe