Renaissance Capital enter Zambian market

Renaissance Capital, the specialist investment bank for high opportunity emerging markets, is further increasing its presence in sub-Saharan Africa by purchasing minority equity stakes in New World Investments, a Ghanaian brokerage, and Pangaea/EMI Securities, a Zambian brokerage.



The strategic alliances between Renaissance Capital and the two brokerages follow a long period of cooperation and a number of transactions in which Renaissance has worked with the brokerages in their respective markets. Both will work closely with Renaissance's investment banking, sales and trading, capital markets and research personnel in their offices in Lagos, Nairobi and London. Zambia's Pangaea/EMI will be renamed Pangaea Renaissance Securities Ltd. Ceaser Siwale, Managing Director, said: "This investment of behalf of Renaissance is a result of our strong relationship and our transaction record history. This clearly marks a new leg in the delivery of sophisticated expertise and technical ability that we can offer our Zambian and international clients by bringing together some of the best professionals in the international and domestic market."



Pangaea Renaissance Securities, formerly known as Pangaea/EMI Securities is a licensed member of the Lusaka Stock Exchange, and one of the largest stockbrokers in Zambia. Besides its general stock trading activities, the firm has handled most of the major listings and flotations on the exchange, including Farmer's House, Zambeef, Standard Chartered Zambia, Rothmans Zambia, Shoprite and Zambia Breweries, and most recently the Celtel.


Pangaea's founders are Mike Galaun, Eric Postel, and Bruce Bouchard, who previously worked with Meridien/BIAO. Pangaea has also recently invested into a separate housing development venture called Pangaea Development Holdings in Accra, Mombasa and Lusaka. The housing development project in Lusaka is called the Lilayi Housing Project and is based close to Lilayi Lodge, who are also principals of Farmers House in Lusaka. Approximately US$43M of the estimated total funding of US$100M for the Lilayi Estates Project was sourced through the US Overseas Private Investment Corporation (OPIC) as part of the fulfillmen of President Bush's Administration African Mortgage Market Initiative, established in July 2003 to encourage the development of mortgage markets in sub-Saharan Africa.



Lilayi Estates will make available approximately 5,000 homes, with mortgage assistance provided by Stanbic Bank. In addition to Pangaea, City Investments involved in Lilayi Lodge and Farmers House, and Madison Investments are participants.



(SOURCE: Pangaea, Rennaisance Capital, OPIC, US State Dept - websites)