Our Sectors

We invest proprietary capital for the long term in the most promising sectors of the continent: financial services, healthcare, infrastructure, real estate and hospitality, agriculture, oil and gas.

Financial Services

Africa has the lowest banking penetration in the world, which spells enormous potential for growth and expansion in the financial services sector. With our demonstrated expertise in this sector, we are well positioned to help drive that growth. Financial services is a leading and transformative sector in the African economy, providing increasingly complex and sophisticated services to individuals, businesses and governments. The Heirs Holdings team knows first-hand how technological developments are opening new frontiers, especially for consumer products. We know how innovations in electronic payments, money transfers, mortgages, and insurance are transforming the way business gets done. We understand how technology is providing new platforms for capturing informal economic transactions. Through our portfolio companies, we have a significant stake in United Bank for Africa Plc (UBA), one of Africa’s leading financial institutions. Our investee company, Afri-Pay, is also championing U-Mo, an innovative mobile payment solution which opens the door to base-of-the-pyramid clients.

Healthcare

The health of a population is linked to a country’s corporate productivity and economic growth. As African nations transform their economies, the wellbeing of nearly a billion people must become a major priority. Given the current inadequacies of Africa’s health care infrastructure and the correlation between health and economic well-being, Heirs Holdings seeks opportunities across the entire health care industry, from hospitals and clinics to physicians and diagnostic laboratories. We also know that a well-structured health insurance industry will become significant and will ensure greater access to quality health care in sub-Saharan Africa. We currently own a fast-growing health care institution, Avon Medical Services Ltd., with a vision to be at the forefront of health care services in Africa. We seek to invest in health insurance organisations and primary and secondary care providers across Africa. The perpetual nature of health care matches our long-term investment horizon.

Infrastructure

With the world’s fastest-growing population (expected to reach 1.9 billion by 2050), demands on Africa’s infrastructure will continue to grow exponentially. This growth offers a variety of investment opportunities; consider that annual revenues from infrastructure development are projected to reach US$200 billion by 2020. At Heirs Holdings, we understand that affordable electricity, for example, is the lifeblood of commerce. In this regard, Heirs Holdings is examining opportunities to improve the capacity in power generation. A steady and affordable power supply will reduce the cost of business operations and increase overall productivity while offering attractivelong-term investments with stable cash flow and high returns. We are working with African governments to improve the investment climate and reduce risk. To attract investors, government and international bodies have been known to guarantee investments in African infrastructure. In addition to power, Heirs Holdings seeks to unleash Africa’s economic potential through investments in transportation, waste treatment, and telecommunications.

Real Estate & Hospitality

Nearly 400 million Africans – about 40% of the continent’s population – live in urban areas. By 2040,Africa’s urban population is projected to reach one billion. Yet, a serious shortage of housing, schools, offices, hospitals, retail outlets, hotels, convention centres, and civic buildings looms, an issue neither African governments and the private sector cannot afford to ignore. Investment in commercial real estate and urban development meets Heirs Holdings’ long-term perspective and goal to meaningfully impact the quality of life in Africa’s cities. There is a broadening need for retail, leisure and entertainment services, especially for the growing middle class. Through Transnational Corporation of Nigeria, one of our investee companies, we have a significant stake in the Transcorp Hilton Hotel, Nigeria’s premier hotel in the country’s capital, Abuja. As the real estate sector further develops, Heirs Holdings will invest in new financial products, including mortgages issued across the continent.

Agriculture

Heirs Holdings regards agriculture as part of the natural resources sector. While agriculture presents immense challenges in Africa, the importance of farming cannot be overstated, given that it contributes to more than 30% of the GDP of most African countries and is by far the largest employer on the continent. We are building an interest in agriculture through alliances with African governments and leading global investors. Investments in African agriculture should prove to be tremendously valuable. Studies show that Africa could multiply its annual agricultural output from US$280 billion to US$880 billion by 2030. Heirs Holdings has acquired a significant stake in Mtanga Farms Limited, an agriculture business with two farming assets spread across over 2,000 hectares in the Southern Highlands of Tanzania. Additional investment in the sector for both domestic and export markets will trigger the development of value-adding food processing industries.

Oil & Gas

Virtually every industry relies on raw materials extracted from Africa. As the world’s appetite for oil and minerals grows, particularly the BRICS countries of China and India, Africa is poised to profit handsomely. The continent is home to 60% of the world’s diamonds and phosphates, 10% of its oil reserves, 90% of its platinum and chromium, and 40% of its gold ore. Through our wholly-owned oil company, Tenoil Petroleum & Energy Services, we are working with our partners to develop Nigeria’s oil and gas industry. Opportunities abound in the extraction of resource deposits, but true value is created in processing and distribution. While Africa has traditionally been an exporter of valuable raw materials, our emphasis is on ensuring that African businesses capture a larger portion of the value chain, add value domestically, develop local industries and create job and opportunities.