Sub-Saharan Africa is beginning to substantiate itself as an attractive investment destination, with international equity now a major source of investment, says Equus.
Capital markets communications agency Equus said international equity has become the fastest-growing source of investment in Sub-Saharan Africa.
Equus argued that growth in the region “looks to be sustainable”, with favourable demographics and a growing middle-class fuelling domestic demand for local products.
“The young, growing population also serves as a source of competitive labour and boosts the consumer market as a whole,” the update said.
Moreover, referring to data by the United Nations Department of Economic and Social Affairs, by 2040 Africa will have a larger working age population than China or India.
“Consumer-facing industries such as [fast moving consumer goods (FMCG)], financial services, healthcare and telecoms, will naturally account for the majority of growth, providing a strong platform for success,” Equus said.
While international private equity has increased within the region, and opportunities are evident, Equus said the market still needs to mature.
“Better risk management tools are needed, as is a continuing maturation of the market, in order to ensure the benefits of this capital are realised.”
Read more:
ANZ institutional banking boss to depart
Challenger moves to placate shareholders
Investment firm Evans Dixon has commenced a restructure of its management, with its chief executive to drop his current position and focus i...
The full potential of impact investing is not being realised, according to the Community Council for Australia, with the responsible investi...
Australia’s ETF sector ended May at a high of $48.7 billion in funds under management, with all of its monthly growth coming from net infl...
Get notifications in real-time for staying up to date with content that matters to you.
