Friday, March 15, 2013

Is now the time to invest in Africa?

Africa seems to be the new darling of the emerging market managers who are looking for higher returns for their investment portfolio.

The demographics sound impressive:

  • Africa's population has rapidly increased over the last 40 years, and consequently, it is relatively young. In some African states, half or more of the population is under 25 years of age.
  • According to McKinsey & Associates, household consumption in Africa is now higher than India or Russia and is expected to continue to grow.
  • Africa is vast- 54 countries and 29 stock exchanges and different regions present different opportunities.
Original Photo: www.freeworldmaps.net


 European investors have been investing in Africa with much success over the last decade and now it seems that US pensions, endowments and foundations are starting to pay attention as well. There are many ways to access this market including private equity, publicly traded stocks, as well as direct plays in natural resources and infrastructure. However, investing in Africa is not for the faint of heart. The news headlines are filled with negative stories about violence and political instability. Here are some recent articles about this opportunity:

Africa: the final investment frontier? March 4, 2013
http://www.fundweb.co.uk/fund-strategy/issues/4th-march-2013/africa-the-final-investment-frontier/1066776.article

Is Investing in Africa a good bet? January 24, 2013
http://www.voanews.com/content/world-econd-forum-africa-24jan13/1590036.html

Follow the Fixer February 22, 2013
http://www.economist.com/blogs/schumpeter/2013/02/investing-africa

Africa Ripe for Investment December 5, 2012
http://money.cnn.com/2012/12/05/investing/africa-funds-stocks-bonds/index.html



We are currently researching the African market. Please let us know your thoughts by emailing us at
inalternatives@iirusa.com

-The IIR Alternatives Team
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2 comments:

hasan said...

Some country are fully developed due to reason they invest their fund in the proper way at the right place like agriculture or farmland sector.there are also opportunity in Africa for investing.

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rain bow said...

This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge.

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