Business: Why Africa Is The Best Place To Invest In

Must Read

African Tribe: The Daasanach People of Eastern Africa

The Daasanach are a semi-nomadic tribe numbering approximately 50,000 whose clans stretch across Sudan, Kenya and Southern Ethiopia. The Daasanach...

Mali Swears In Bah Ndaw As New Civilian Leader

Mali's new president Bah Ndaw has been sworn into office, five weeks after the overthrow of Ibrahim Boubacar Keïta. Former...

Troublesome South African Baboon Evicted For Organizing Gang To Raid Homes

Kataza is an urban baboon who was captured and put in a local prison for organizing a band of baboons to join him in raiding 15 homes in Kommetjie, on Cape Town's southern peninsula in South Africa.



US president Donald Trump caused major upset in Africa recently when he reportedly referred to the continent as being made up of “sh*thole” countries. While the term has gained notoriety in a short space of time, fund managers at Ashburton Investments say it would be silly to discount Africa as an amazing investment opportunity.

Why You Should Invest In Africa

According to Paul Clark, a fund manager and Africa specialist at Ashburton Investments, news, like Trump’s comments, often focus on the worst issues facing the African continent. But on the ground, growth is continuing, infrastructure is improving, and business conditions are getting better.

“As investors who travel across the continent regularly we observe these trends first hand, but these are also clear from surveys and economic measures,” Clark said.

Ashburton pointed to data showing why Africa is a good bet, including growth rates, inflation rates and index performances.
The key data comes from the International Monetary Fund, which shows Africa’s expected growth compared to other regions.

The data shows that the continent, especially in countries that have equity markets and are typically more developed, are expected to grow faster than the world over the next five years and significantly faster than Advanced Economies.

Why You Should Invest In Africa

“Of course there are also quite a few countries in Africa that are not performing as well and, even though they tend to make the news more often, are usually smaller economies that are less developed than those that have equity markets” Clark said.

Outside of projected growth, Ashburton pointed to the inflation outlook for African countries with equity markets. While global inflation is rising, many African economies are just coming out of an inflationary spike:

Why You Should Invest In Africa

“As inflation declines through 2018 we expect local interest rates to decline. This reduction in interest rates is expected to create further demand for equities,” the fund manager said.

With many economies across the continent on a recovery path and inflation declining, we expect interest rates to start coming down soon. This will be positive for equity markets that will also start anticipating the generally improved economic outlook for the continent in 2018 and beyond.

“We believe investors should diversify their returns by investing in the rest of Africa – even if some people call them sh**hole countries,” the group said.

Culled from: Businesstech.co.za
Image credit: businesstech.co.za



Uzonna Anele
Anele is a web developer and a Pan-Africanist who believes bad leadership is the only thing keeping Africa from taking its rightful place in the modern world.

Leave a Reply

Subscribe to receive email updates

With a subscription profile, you automatically receive updates without having to return to the website and check for changes

Just In

African Tribe: The Daasanach People of Eastern Africa

The Daasanach are a semi-nomadic tribe numbering approximately 50,000 whose clans stretch across Sudan, Kenya and Southern Ethiopia. The Daasanach...

Mali Swears In Bah Ndaw As New Civilian Leader

Mali's new president Bah Ndaw has been sworn into office, five weeks after the overthrow of Ibrahim Boubacar Keïta. Former Defence Minister Bah Ndaw, 70,...

Troublesome South African Baboon Evicted For Organizing Gang To Raid Homes

Kataza is an urban baboon who was captured and put in a local prison for organizing a band of baboons to join him in raiding 15 homes in Kommetjie, on Cape Town's southern peninsula in South Africa.

A Leading University In China Now Teaches Ethiopia’s Amharic Language As A Full Course

A leading university in China — Beijing Foreign Studies University (BFSU) — has started to offer Ethiopia's widely spoken Amharic language as a full...

TIME 100: Tony Elumelu, Three Other Nigerians Makes Time’s list of 100 Most Influential People Of 2020

Tony Elumelu, is among four Nigerians named by the Time Magazine International in their 2020 list of 100 most influential people in the world...

More Articles Like This