Investment banking boutique DGWA – the German Institute for Asset and Equity Allocation and Valuation, or Deutsche Gesellschaft für Wertpapieranalyse – has decided to expand its activities in the mining and resources business, specifically expanding into Africa, given the ever-increasing importance of the commodities sector.

Apart from entering the African market, it is also intensifying cooperation with students from Germany’s leading mining university, the Freiberg University of Mining and Technology.

Additionally, DGWA last month appointed South African-born Etienne du Plessis as African area manager to represent DGWA’s activities on the continent.

DGWA wants to identify African resource projects that are of interest to both investors and industry in Europe, and Germany, in particular.

Du Plessis explains that the range of services DGWA offers will include “the usual capital market services”, as well as the establishment and maintenance of connections and contacts with partners from the German industry.

“We build solid, substantial and comprehensive bridges for listed and nonlisted companies to investors, financial institutions and multipliers like the press and the media, and offer the finest financial engineering solutions, tailor-made for our clients,” Du Plessis affirms.

Further, DGWA can also support, for instance, efforts by entities to ensure qualification for funding programmes from relevant European institutions and organisations, having established long-standing relationships with bodies such as the German Federal Ministry for Economic Affairs and Energy, the German Federation of International Mining and Mineral Resources, the German Mineral Resources Agency and the Federal Institute for Geosciences and Natural Resources, as well as the Freiberg University of Mining and Technology.

He adds that, in terms of its criteria when scoping out projects, DGWA’s primary focus is the overall sustainability of the project. “We also want the project to be socially accepted and to be conducted in an ethical way. In terms of the mines themselves, each project will be assessed on its own merits after thorough due diligence.”

Du Plessis notes that the firm is also part of the working groups for the development of the battery industry in Germany and the European Union (EU).

He notes that one of the main reasons the firm seeks to establish a foothold on the continent is that the EU is accelerating its investment in the battery metals space, because current demand is substantially higher than predicted, as a result of faster-rising demand for electric vehicles and other battery-based products.

Du Plessis cites European governments setting up subsidy funds to build up battery production, pointing to Germany injecting €1-billion and France contributing €700- million to this end.

“Africa is a very mineral-rich continent and provides our investors with good opportunities coupled with a good return on investment. Given the continent’s incredible track record producing some of the finest minerals, we are very excited and optimistic about the prospect of expanding to Africa,” Du Plessis states.

He explains that DGWA is not focusing on specific battery commodities at present and will assess each project on its own merits. Additionally, he notes that DGWA feels there are opportunities beyond the battery minerals sector in Africa, adding that the firm might look for such projects.

Du Plessis comments that, while DGWA expects some challenges inherent in dealing with new business environments, “we have our own professional teams anticipating and providing the necessary solutions to ensure sustainable service delivery”.