SAVCA conference: ITL’s Yan Ng highlights sectors that thrived during the pandemic

While many industries in Africa were negatively impacted by Covid-19 lockdowns, some managed to thrive, according to Yan Ng, executive director for fund services at Intercontinental Trust in Mauritius.

Speaking during a panel discussion at the recent SAVCA Private Equity Conference, Ng said local food production received considerable investor interest as many countries restricted exports. “We have seen a lot of companies investing in those food-related industries [linked to] manufacturing, storage and distribution.”

Import substitution, in general, became an important investment theme in Africa. The depreciation of local currencies meant more expensive imported products and created a strong business case for domestic production.

Ng also highlighted telecommunications as an industry that benefited from the pandemic. A greater number of people working from home has increased the demand for internet, cloud and data centre services and products.

Fintech is another industry that thrived, particularly e-commerce solutions and cashless payment apps.

Ng said African private equity fund managers quickly adapted to the situation. “In the beginning, it was survival mode and no sectors really emerged [as winners] but, as time went on … we saw some industries doing better than others.”