Example of practical analysis of proposed profitability evaluation criteria of private equity investment in a set of African target countries

The aim of this thesis is to analyze the main aspects related with foreign direct investments in developing countries, with a particular focus on Sub-Saharan Africa (SSA) and on the energy sector. The starting point will be the study of opportunities and threats of this area of the world, then, the focus will pass to the as is investment approach, considering the main actors involved in the process. The third chapter, instead, will put the attention on private equity investors, analyzing the main differences they should face in respect to the developed world, and the latest trends. Going in depth with this analysis about private equity, the focus will pass on another fundamental point: profitability issues in SSA countries, comparing then the situation with Latin America and Caribbean (LAC) countries, where we can find similarities, but also shortfalls that can be avoided in the SSA case. Finally, the last chapter will introduce a useful model in order to spot the most attractive countries for investment, and then, the ones resulting on the top of the list will be analyzed more in depth.