Our approach
Investment principles
Long-term partnership
- The value-adding, partnership approach is supported by the fact that Tana limits the number of companies in which it invests, focusing its efforts on companies that can serve as platforms for domestic and regional expansion
- Developing such enduring businesses will, at times, require the adoption of lengthy investment time horizons
- The flexibility that Tana has in terms of investment holding periods originates from the fact that it has been established as an evergreen investment company and has as its founding shareholders investors that have achieved great success from eschewing the short termism that dominates much of the investment world
Clear sector focus
- Tana focuses primarily on FMCG, retail, education, healthcare and agribusiness
- This clear sector focus brings with it deep industry expertise and extensive networks, greatly enhancing the positive impact that Tana can have on the companies in which it invests
Underlying health, not short term volatility
- Tana focuses on the underlying health and long term prospects of the businesses in which it invests, rather than be preoccupied by short term swings in financial performance
Active investment management
- Tana is an active, value orientated investor that engages positively and in a collaborative fashion with the boards and management of the companies in which it invests
- Tana prioritises the institutionalisation of business practices such as business leadership, financial discipline, operational excellence and sound corporate governance
- In doing so, it is able to draw on its investment team’s deep experience in strategy and operations across Africa
Investment criteria
Tana pursues investments in private companies which operate in Africa and possess the following attributes:
- Large, addressable and rapidly growing market
- Minimal public sector dependency
- Attractive industry structure with proven, profitable and sustainable business model
- Highly scalable business with standardised and repeatable processes
- Sustained organic growth, as well as potential for add-on acquisitions
- Distinct competitive advantage driving strong market position
- Talented and visionary entrepreneur/management team
- Clearly identifiable and implementable levers for value creation
Focus sectors
Tana would consider select opportunities in leisure, manufacturing, retail financial services, media, logistics and business services.
Agribusiness
The Agriculture sector in Africa is underdeveloped and has huge potential with the largest share of arable land in the world, the lowest agriculture productivity and an abundant labour.
In terms of subsector, Tana focuses on Inputs: Fertilizer and feed, Primary production: horticulture, livestock and aquaculture and Processing: fruits and vegetables and meat / poultry products.
Tana has looked closely at various agriculture opportunities across the continent and has also accumulated deep sector experience from its current investment in Afrifruit, a primary producer of berries in Morocco, and its previous investment through Africa Holdings in SIAT, a rubber and Palm oil producer in West and Central Africa.
Education
There is significant under-served demand for good quality education in Africa with the failure of the public sector, a high demonstrated willingness to pay for education and a fragmented and patchy provision of quality private education.
Tana has partnered with Saham Group, a leading Moroccan corporate, to build a Pan-African school group called International Education Group.
IEG Education focus is on the K-12 segment with select opportunities to be considered in the pre-kindergarten and tertiary segments. The objective is to build a 100,000-student group across Africa through acquisitions as well as greenfield developments.
FMCG
The FMCG sector in Africa benefits fully from macro-trend with a strong population and middle-class growth, per capita income growth and improved regulation and fiscal policies.
In terms of subsector, Tana focuses on personal care, packaged food and beverages.
Tana has deep FMCG experience with existing and prior FMCG investments (Promasidor and Regina Pasta).
Healthcare & Pharma
Healthcare is a large and growing sector in Africa as populations expand, and age and disease burden remain high. The sector is underdeveloped in Sub-Saharan Africa given lack of well-developed health insurance and poor provider quality. The demand for quality healthcare is vast and requires private sector.
In terms of subsector, Tana focuses on pharmaceutical manufacturing and distribution, hospitals and diagnostic.
Tana has looked closely at various healthcare opportunities across the continent and has also accumulated deep sector experience from its current investment in Mabaret Al Asafra, a leading healthcare group in Egypt.
Retail
Development of formal retail in Africa is synergetic with the emergence of FMCG given that increased breadth of SKUs available to consumers requires adequate distribution channels underpinned by continued urbanization which means more concentrated purchasing power.
In terms of subsector, Tana focuses on grocery stores, specialty stores, home furnishing retailers.
Tana has deep experience in Retail from its current investment in SAN Gel (leading frozen food retailer) and Kitea (leading household furniture retailer).
Other
Tana would consider select opportunities in leisure, manufacturing, non-bank financial services, media, logistics, business services, digital payments and other tech-enabled sectors.