Exposure to a potentially high growth region
Investors are in pursuit of capital accumulation and growth, and are looking for investment opportunities anywhere to get it.
Africa is among the world’s most rapidly growing economic regions and it is building the foundations for higher growth and poverty reduction. The U.S. economic outlook, fiscal crisis in Europe and growing concerns over possible bubbles in China are some of the reasons investors eye Africa to diversify their investment portfolios.
Frontier markets are under the spotlight
Frontier markets and mostly Africa, according to many economists, can no longer be ignored by investors seeking additional exposure amid weak Western growth. In the past recent years, foreign investments have been pouring into Africa in sectors such as telecoms, natural resources and agriculture.
Exciting investment catalysts are emerging
Some of the catalysts that foster investment opportunities in Africa:
• Rising global demand for commodities and energy.
• Growing middle class which provides significant boost to potential growth in demand.
• Increased urbanization and Infrastructure developments as key drivers of economic growth.
• Greater political stability.
• Improved macroeconomic stability, transparence and governance.
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