The case is set in December 2018, when Ziad Oueslati, co-managing director and co-founder of AfricInvest, a leading pan-African private equity firm headquartered in Tunisia, was reflecting on the future direction of his firm. AfricInvest started as a traditional small and mid-cap private equity fund, but over the years had expanded into multiple adjoined investment strategies. At the end of 2018, the team saw an opportunity in the venture capital (VC) space, but while some were adamant about the need to raise a VC fund, others were reluctant to add yet another strategy to AfricInvest's diverse investment strategies. The case presents a detailed insight into AfricInvest's journey from a $10 million Tunisian fund, to becoming a prominent regional player operating throughout the African continent with $1.5 billion of assets under management. Among other issues related to the firm’s growth, the case provides insights into the challenges of operating in such a wide and varied geography as the African continent. The case also offers details on their multiple investment strategies, ranging from small-cap SME focused funds, to sector-specific funds, cross-border funds, and private credit. The case explores the synergies and challenges associated with such a wide-reaching investment platform. This is described against the backdrop of the collapse of Abraaj, a leading emerging market private equity firm, in a scandal that shook the investment community in the region. The case also touches upon the role of development finance institutions (DFIs) as investors in emerging markets and the challenges of defining and measuring impact investing. The opportunity of launching a pan-African VC fund in the context of the recent collapse of Abraaj brings to the forefront several strategic questions for AfricInvest’s co-founders: Should they keep expanding into new strategies, or would it be better to roll back their existing ones to focus only on their flagship private equity funds? Were the synergies and opportunities that came from being a platform enough to offset the risks, or was their focus being spread too thin by operating numerous diverse strategies?
The case opens in August 2020 as Ozgur Tort and Mustafa Bartin, CEO and chief large-format and online retail officer of Migros Ticaret A.S. (Migros), Turkey’s oldest and one of its largest supermarket chains, are navigating Migros through COVID-19 and the unprecedented surge in demand in online groceries. Between the first official case in Turkey in March and August, customers have flocked to online shopping and Migros’ teams have been busy trying to solve the picking, fulfillment, and logistics bottlenecks. In the six months, the company recruited and trained new pickers, expanded its delivery fleet, and converted less busy stores into dark stores. Quick to react, Migros was able to add new customers to its base and was proud of its accomplishments. Now, unable to forecast how much of the surge in demand for online was here to stay, how should Migros plan for the future of Sanal Market and Hemen? Was there anything the company could do to sustain the number of hybrid shoppers it acquired during the past few months?
In Israel of 2020 the demand for software engineers was endless. Meanwhile just miles away, Palestinian universities were graduating 3,000 engineers a year, and many of them could not find jobs in the still nascent Palestinian tech sector. Could these dots be connected? Dozens of Israeli startups and Multi National Corporations (MNCs) thought that they could, and were employing 700 Palestinian engineers, in part through outsourcing companies, and in part directly by opening local R&D centers. In conjunction, the Palestinian tech ecosystem was benefiting and developing a promising entrepreneurship sector. Both the joint work and the independent Palestinian ecosystem had important geopolitical implications, first by supporting the Palestinian economy, and second in the potential implications it could have on the relationship between Israelis and Palestinians, two peoples who have been in conflict for decades. While the opportunities were clear, various challenges facing an emergent tech sector, coupled with sensitivities surrounding cooperation between long-time ‘enemies’, created complications. Paradoxically, Palestinians realized that working with Israeli tech companies was highly promising, but the reality was that any relationship with Israel was politically sensitive for them and created a dilemma. The same applied for Israelis motivated but concerned about working with Palestinian engineers. Given the tremendous benefits, MNCs, governments, non-profits, and international organizations decided to promote co-operation between Israeli and Palestinian tech companies and to support the creation of a sustainable Palestinian tech sector; by mitigating the challenges both sides faced. Still, it remained to be determined whether these efforts would bear fruits, or whether tech cooperation between Israelis and Palestinians would remain anecdotal. Moreover, it was as yet unclear what big-picture implications such initiatives could have on the Palestinian economy and on the relationship between the two peoples. Recent developments, including the global pandemic and the peace agreement signed between Israel and the UAE provided their own sets of challenges and opportunities. Notable Israeli and Palestinian tech executives and entrepreneurs discuss the opportunities and challenges of collaboration, including the merits and drawbacks of various collaboration models, and the potential ripple effect that building a sustainable Palestinian tech sector could have on the region. Policymakers and advisors weigh in on the potential geopolitical implications of collaborations and an independent Palestinian tech ecosystem.
See more research
Data Privacy Statement