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Africa optimism rising
When some of the most influential figures in emerging markets finance spoke to a group of Reuters editors, they were asked about top picks for growth beyond the so-called BRIC countries of Brazil, Russia, India and China.
One continent came up again and again – Africa – and one country in particular – Nigeria. Goldman Sachs global head of economic research, Jim O’Neill, highlighted the improvement in the growth-environment index of Africa’s giant over the past decade.
“If it were to show the same increase in its growth-environment score over the next decade, many investors will look back and say why the hell didn’t I invest in Nigeria,” said O’Neill, who coined the term BRICs.
You can read the full story here.
Recent interest in Africa has been buoyed by the World Cup while a series of reports have highlighted its prospects beyond the global crisis. There was a recent McKinsey study and Fitch has come out with an improved outlook for sub-Saharan Africa.
There is certainly plenty of optimism outside the continent. Will it be fully realised this time around?
from Global Investing:
Africa investment: back on?
Could it be that rock bottom interest rates in the developed world are finally driving money into Africa?
Corruption, bureaucracy and uncertainties over debt restructuring all remain as barriers to investment in Africa, but overall the climate is improving, at least according to emerging market specialists who gathered recently at Thomson Reuters' London headquarters for panel discussions on African investment.
There has been a lack of both opportunity and willingness for international investors to get back into Africa, after many pulled out as a result of the global financial crisis.
But that is starting to change as minimal interest rates in developed countries once more propel investors to higher-yielding, growing economies. Michael Hugman, emerging markets strategist at Standard Bank, told the conference:
The crisis for Africa should be a relatively short-term deviation. People are finally waking up to the fact that OECD countries are offering little over 1 percent.
Postponed international bonds may once more be on the road, with Kenyan Central Bank Governor Njuguna Ndung'u promising the conference Kenya will launch a planned debut Eurobond next year.
A loan to Angola was likely to be approved this week, delegates from the International Monetary Fund said, adding they were "cautiously optimistic" on Africa's growth outlook.
South Africa and Nigeria rank around 30 out of 158 on world GDP scale with immense probabilities.
Raw materials and crime for Africa with a fear of ‘white’ dominance reappearing creates a ‘beware’ signal of a loose-loose game to both sides.
Africa needs para-mount assistance to rid itself from the dark era of dictators and hunting aggression.
17 000 murders per annum makes this otherwise beautiful
South Africa a bit scary.
Raw materials and tourism has potential from those with impeccable credentials but wait till after next election for nationalization of mines could be implemented and land grab like Zimbabwe if the president of the ANC youth league comes into power.