Africa has six countries with higher annual GDP growth than China. Should investors have a higher exposure within a GEM portfolio to Africa than other developing countries?
Mark Harris, co-manager, CF Eden Global Multi-Strategy fund Risks remain While a number of African economies are expanding at a rapid pace, this does not mean that the growth will be reflected in their equity markets rewarding investors anytime soon. The obvious risks regarding ownership rights, reporting standards, transparency and corruption are just a few of the potential issues, albeit improvement is evident. However, these markets are highly sentiment and liquidity driven and the authorities do not have all the necessary tools at their disposal to effectively manage such inf...
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