Attracting foreign investment in Africa’s mining industry

Mergers and acquisitions activities are rapidly becoming popular and the norm in the African startup ecosystem, offering a pathway for funding, market consolidation, and sustainable growth. We spoke to the founder of MDR Investments, Prateek Suri, to gain insight into the world of venture capital projects in Africa. For Maser Group, the vision in acquiring large-cap ventures is limited to metals and the natural resources mining sector in Africa. The company aims to acquire defunct companies with substantial assets in the mining industry, especially focusing on natural resources such as cobalt, rhodium, gold, diamond, and recently, Zambian mines. Prateek Suri expressed confidence in Africa's policymaking and bureaucratic environment, highlighting the value they aim to add in the acquisition market. When asked about the concerns regarding political stability and crony capitalism in some African nations, Suri emphasized the need for businesses to adapt to the pace of technology and digital acceptance. He acknowledged the presence of advantages and disadvantages in every country, including issues like crony capitalism, but stressed that Africa's diverse landscape offers unique opportunities. Suri commended the tech-savvy population in Africa and the presence of well-established laws and regulations in various countries, viewing them as advantages despite potential challenges. Regarding the impact of currency depreciation on investments, Suri acknowledged the fluctuations but reiterated Africa's profitability and attractive margins. He emphasized that despite currency challenges, Africa remains a continent with lucrative investment prospects and significant profitability. Suri highlighted the balance between risks and rewards in working in Africa, suggesting that the benefits outweigh the potential obstacles. When questioned about exiting options, particularly in the tech sector where concerns have been raised about limited exit strategies, Suri emphasized the growth potential in various industries. While mining projects may not typically seek early exits, Suri noted the evolving perception of Africa as a tech-savvy region with emerging unicorns. He pointed out that while some foreign investors may express apprehension regarding exit options, opportunities for profitable exits exist, especially with proper evaluation of processes, regulations, and bureaucratic environments. In conclusion, Prateek Suri's insights shed light on the evolving landscape of foreign investment in Africa's mining industry, highlighting the potential for growth, challenges, and opportunities. As the continent continues to attract foreign capital, navigating the complexities of the market while leveraging its rich natural resources remains crucial for sustainable development and economic advancement.