 |
"There has been a clear and significant improvement in sovereign governance, propelling faster economic growth" |
The sub-prime mortgage market crisis in the US and the associated credit crunch has grabbed most of the headlines in the financial press in recent weeks but Investec Asset Management believes that the much less widely followed economic upturn in Africa merits greater attention in the light of recent global market volatility. Chris Derksen and Roelof Horne, managers of the Africa Funds at IAM and co-authors of a recent report – Why invest in Africa? – highlight the fact that Africa, far from being the investment basket case it was in the 1980s and 1990s, has experienced strong positive trends this decade, with GDP rising faster than the global average and growing free-market economic success.
"It should come as no surprise that some investors are noticing the significant potential that exists in this continent of around 950 million people," says Derksen. "For both direct and portfolio investors, Africa offers the potential for attractive returns at significantly lower risk levels than are commonly perceived. There has been a clear and significant improvement in sovereign governance, which is propelling faster economic growth, improving the environments in which African businesses operate."
