In this blog we will analyze New Markets at the country, sector and firm level. We will not attempt to be 'complete', but focus on background news instead.
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Friday, September 10, 2010
African Equity Markets attracting record inflows of Foreign Money
African equity markets posted an impressive record of 51 weeks of net investment inflows during the last year. This is indicative of foreign investors discovering the potential of the continent. Regular readers of LMG's research know that we believe that Africa and the Middle East will be investment hot spots during the next 3-5 years.
Obviously, this is not meant to be translated into a huge additional allocation to Africa within your investment portfolio. The markets are still relatively illiquid, and the total net inflow so far was just a bit more than USD 600 million.
Main beneficiaries were South Africa, Nigeria, Kenya, Ghana, Botswana, Uganda, Zambia and Zimbabwe. South Africa is the largest and most sophisticated economy of Africa. Even when we exclude South Africa, figures are impressive. So far YTD inflows were 4 times larger than the previous record (2007).
Principal at LMG Emerge. LMG is an internationally operating independent financial consultancy firm headquartered in Zeist, The Netherlands.
Our clientele consists of institutional and high net-worth private investors (investment advice) and corporates (valuation advice, risk analyses).
Our areas of activity include: Asset Allocation, Selection of Financial Providers/Asset Managers and Emerging Markets advice.