What is the case for African investment?

Frontier markets

Eric Kibe, chief investment officer of the Sanlam African Frontier Markets fund, explains the growth drivers supporting the investment case for the continent.

With the global equity markets in turmoil and investors grappling to price in the new political risk dynamic into developed market equity valuation models, the African continent presents an apparent and compelling alternative investment destination. Although African equities have recently also been pummelled by the uncertainty and fear pervasive across global equities, the African financial and capital markets are still less integrated with the global markets than the emerging market favourites – BRICS et al. From the global investor’s perspective, Africa therefore offers a low correl...