After having managed an $800 million hedge fund by the ripe age of 32, you would think activist investor Mr. Ravi Sood would planning a multibillion dollar fund or relaxing in Muskoka. Instead, Ravi decided to reinvent himself and now sits on the other side of the transaction, building sustainable enterprises in Africa. I had an opportunity to speak with Ravi about his passion for investing in Africa. Driven by financial returns and social impact, Ravi shares his enthusiasm for building businesses and investing in Africa.

Ravi has a long track record of investing in Africa and other frontier markets. He is currently the Chairman of Feronia, a plantations and arable farming company operating in the Democratic Republic of the Congo, and the Chairman of Galane Gold, a gold mining and processing operation in the Republic of Botswana.

What attracts you to investing in Africa?

I am attracted to investing and operating in Africa for several reasons but I will highlight three: risk-reward ratio, domestic economic growth, social impact.

Assets or opportunities in Africa are typically ascribed very high implied discount rates. There is good reason for this depending on the jurisdiction, however, this presents a major opportunity for those who can mitigate the operating risks and can source the necessary finance on reasonable terms to fund these opportunities.

A second major driver for my interest in Africa is the high domestic growth rates. Not only are these growth rates superior to most other jurisdictions but there is reason to believe that many of these countries are at the beginning of a long period of sustained growth.

Finally, I will highlight the opportunity to have a positive impact on the communities in which the companies I invest in operate. Re-investing in our communities has a positive economic return through improved education, health, prosperity and stability. It is also personally rewarding.