Equity Group's Q3 2024

In this episode recorded on 20.11.2024, we are joined by Brent Malahay - Chief Strategy Officer at Equity Group, Willy Mulamba - Ag. Managing Director at Equity BCDC, and Paty-Paterne Mushagalusa - Commercial Director at Equity BCDC to unpack Equity Group's Q3 2024 results and the DRC strategy.Subscribe to get notified when we make a new post.Key Quotes“Let me give you four statistics which may give you a sense of the true problem statement of Africa. The first statistic I'll give you is 3%. 3% is the share of wealth that Africa has if you use GDP. The second statistic is 8%, and this is essentially the supply of food net of exports that Africa has. And then importantly, the third statistic is 17%. And this is the share of Africa's population, and the last or the fourth statistic I'll give is 25% and this is the population of Africa by 2050. So the real problem statement for Africa is how we close the gap of the 3% to the 25% by 2050.”Brent Malahay“Our subsidiaries, which include DRC contributed 48% to our asset base. DRC contributed a third to the total Group in terms of total assets or balance sheet. In terms of profit before tax, our subsidiaries contributed 53%. And if we just look at the DRC, it contributed also about a third to the Group's profitability.”Brent Malahay“Any investors coming from Kenya or any other country in Eastern Africa where it's a bit developed, we can only believe food and agriculture, I think internal transformation can present a quick conversion in terms of opportunities and then returns on any investment.The other one will be education and health. Kenya has quite an impressive network in terms of schools, in terms of education we believe that industry itself can also present great opportunities for any investor coming. Health as well I think is a critical and basic need in the DRC, specifically in big hubs of which Kinshasa would be number one, and other areas such as Lubumbashi, even Eastern DRC, and Bukavu. This would be, I think, the three or four where you can see a quick low-hanging fruit for conversion into opportunities and in PNL.”Willy Mulamba“As a group, we intend to have 100 Million customers by 2030. So maybe not so much 5 years, but call it in the next 7 years, we expect to have a hundred million customers. For us, the focus is more about the customer target than necessarily the number of flags we plant, our map.”Brent MalahayShow Notes00:00:00 Introduction00:04:34 Equity Group’s Strategy00:10:04 DRC's Role and Its Economic Potential00:19:24 The DRC Strategy00:21:33 Kenya's Economic Landscape00:25:03 Economic Challenges, Consumer Trends, and Diversification00:26:01 Opportunities in the DRC00:28:51 Regional Strategies00:32:01 Security Concerns in the DRC00:36:38 Equity Group's Vision and Future Plans00:41:38 Closing Remarks Get full access to The Mwango Weekly at mwangocapital.substack.com/subscribe