What we do

ThirdWay Africa

Investment Management

“Today in the world, you have five hundred million farms which are less than three hectares, and those five hundred million farms are providing the direct living of 2.5 billion people. It means one-third of the planet lives on those small entities” 

Monique Barbut from the  U.N. Convention to Combat Desertification

ThirdWay Africa is in the process of launching the ThirdWay Africa Impact Fund, an impact investment private equity fund focused in rural development across Indian Ocean Africa.

At ThirdWay Africa we firmly believe that investment capital can be the engine of development of rural areas in Africa, by the creation and development of sustainable businesses that have the potential to transform the lives of local communities in Indian Ocean Africa. This is a region where about 70% of the population is rural, living on one to two US Dollars a day, and yet with a significant portion of the world’s uncultivated arable land facing Asian markets. It is also a continent where the population will grow to 4 billion by the end of the century.

We also believe that impact investing, applied to rural Africa, could unleash the power of the butterfly effect, by which a small change in one state of a nonlinear system can ultimately result in large differences over time. We want to lead with the world’s most rigorous capital (commercial private equity) and blend it with development funding pools committed to Africa, to generate commercial returns for our investors and at the same time transform the lives of rural communities. We want our investments (focused principally on agriculture, renewable energy infrastructure and forestry plantations) to become the heartbeat of rural development in the areas in which they are present, targeting explicit and measurable impact across four selected pillars drawn from the UN’s Sustainable Development Goals (education, livelihoods, wellness and climate smart).

Our investment thesis

POPULATION EXPONENTIALITY

Africa’s population is expected to account for over 25% of the world’s population by 2050. With 50% of its existing population under 20 years old, it will become the world’s youngest and most populated continent. At its peak of growth, Africa will be able to fill an empty Nairobi twelve times a year.

NATURAL WEALTH

Africa is host to an abundance of resources, including 25% of the world’s arable land – more than twice as much as the rest of the world on a per capita basis. It is also host to 25% of the world’s rainforests.

CLOSING THE GAP

China and India combined produce over a third of the world’s fresh fruit and over half of the world’s fresh vegetables. Given its size and strong fundamentals, Africa could play a similarly significant role in the global supply chain while catalysing its own development. Impact investments could help seed this transformation.

A WORLD OF ACCELERATIONS

Global warming in Niger means that climate economic refugees are now fleeing to Europe, the population of Tanzania was 7.6 million in 1950 and will be 300 million in 2100. Rural Africa is faced with this accelerating world and has a real chance of either being left further behind (with increasing migration to urban areas) or significantly catching up. The latter is our aspiration, but the timing is now.

Advisory

Frontier thinking in frontier markets
Africa has traditionally characterised itself by high costs of doing business, low liquidity and underdeveloped capital markets. When analysing business opportunities and potential investment decisions it needs to be noted that risk considerations require a more complex analysis and that asymmetry of information is greater than in more developed markets.
With offices in Maputo, London and Madrid, and a team of over 15 professionals, TWA has developed over the past few years an international ecosystem of finance and development partners, as well as unique access to deal-flow, in Indian Ocean Africa that provides us with a unique positioning to help our advisory partners navigate and maximise the regional business arena. The team has over 75 years of combined experience in corporate finance, strategy consulting, international private equity and capital markets, together with a long business track-record in Africa.
Since its foundation, ThirdWay Africa has built a team with experience in executing deal-by-deal private equity opportunities, advisory mandates and impact consulting projects in the regions it operates, helping international investors, African businesses and large development organisations plan, execute, risk-manage and restructure investment opportunities and grant programmes.
ThirdWay Africa

Our Model:

frontier thinking in frontier markets

ThirdWay Africa

CORPORATE FINANCE ADVISORY

Strategic counseling

Buy-side & sell-side origination

Fundraising

Debt restructuring

Private placements

Local content strategy

Local transaction services

IMPACT CONSULTING

Programme design

Concept development

Technical assistance

Market research

Project management

Impact finance solutions

Strategic planning

Corporate Finance Advisory

Strategic counseling

Buy-side & sell-side origination

Fundraising

Debt restructuring

Private placements

Local content strategy

Local transaction services

Impact Consulting

Programme design

Concept development

Technical assistance

Market research

Project management

Impact finance solutions

Strategic planning

Over 75 years of combined experience in corporate finance, strategy consulting, international private equity and capital markets,

together with a long business track-record in Africa