Terminology

Use this list of key terms to gain a better understanding of the Bright Africa insights.

ACFTA

The African Continental Free Trade Agreement

AFDB

African Development Bank

AUM

Assets under management

AVCA

African Venture Capital Association

BRIC

In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development.

BRVM

Bourse Régionale des Valeurs Mobilières SA. The regional stock exchange serving Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo

BPOPF

Botswana Public Officers Pension Fund

CASE

The Cairo and Alexandria Stock Exchange

CDC

CDC Group plc (formerly the Commonwealth Development Corporation, and previous to that, the Colonial Development Corporation) is a development finance institution owned by the UK government. The Department for International Development is responsible for CDC, with shareholder duties managed by the Shareholder Executive. It has an investment portfolio valued around £4.8 billion (year end 2016) and since 2011 is focused on the emerging markets of South Asia and Africa.

COFIDES

Compañía Española de Financiación del Desarrollo is a joint-stock company of mixed capital, whose object is to give financial support to the projects that are carried out in emerging or developing countries in which there is some type of Spanish interest

Cost of Equity

Investors evaluation of risk that the enterprise is exposed to

DB

Defined Benefit

DC

Defined Contribution

DFI

Development Finance Institution

DRC

The Democratic Republic of the Congo

EBITDA

A proxy for operating income [Earnings before interest, tax, depreciation and amortisation]

EIB

European Investment Bank

EV

Enterprise value, A measure of a company's value [Market cap plus debt, minority interest and preference shares]

EV/EBITDA

Earning multiple calculated as Enterprise Value divided by EBITDA Foreign direct investment

Free-float-adjusted

Market capitalisation of a company, adjusted to reflect the number of shares readily available in the market

FDI

Foreign Direct Investment

FTSE

The Financial Times Stock Exchange

GDP

Gross domestic product

GEPF

Government Employee Pension Fund

GFC

Global financial crisis

GIPF

Government Institution Pension Fund

GLA

Gross Lettable Area

GNI

Gross National Income

GPW

Gross Premiums Written

IESE VC&PE

Refers to the IESE Business School Venture Capital and Private Equity

IFC

The International Finance Corporation is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries

IMF

International Monetary Fund

IPO

Initial Public Offering

IT

Information Technology

JSE

Johannesburg Stock Exchange

LUSE

Lusaka Stock Exchange

M&A

Mergers and acquisitions

Market capitalisation

Total dollar market value of all of a company's outstanding shares

MIT

Mexico, Indonesia and Turkey

MINT

Mexico, Indonesia, Nigeria, Turkey

MSCI

A US-based provider of equity, fixed income and hedge fund stock market indexes, and equity portfolio analysis tools

MUSE

Stock Exchange of Mauritius

Nominal basis

GDP at current prices

NGSE

Nigerian Stock Exchange

OPEC

Organisation of the Petroleum Exporting Countries

OPIC

Overseas Private Investment Corporation

PE

Private Equity

P/E

Price to Earnings multiple

PPP basis

Purchasing power parity basis, taking into account the relative costs of a basket of goods in each country, reported in current international dollars

PE

Private Equity

PENCOM

National Pension Commission

Rebasing of Nigeria GDP

The Nigerian GDP was recently rebased to a base year of 2010. This means that the National Bureau of Statistics recalculated GDP using a base year of 2010 (previously 1990), taking into account the production structure and prices in that year

Sample period

RisCura private equity deal database covering transactions from 2003 to 2013

SAVCA

Southern African Venture Capital Association

SWIX

Shareholder weighted index

SDG

Sustainable Development Goals

Turnover ratio

A measure of stock liquidity calculated by dividing the total number of shares traded over a period by the average number of shares out standing for the period

United Nations Conference on Trade and Development

United Nations Conference on Trade and Development

UNECA

UN Economic Commission for Africa

WFE

World Federation of Exchanges

WGBI

World Government Bond Index