How to avoid unrest and corruption when investing in Africa

African financials are looking attractive despite the continent's wider corruption troubles, according to Old Mutual Investment Group's Cavan Osborne.

Osborne, manager of the $50m Old Mutual Pan African fund, said the banking sector is ripe for consolidation. He currently holds 34% of the fund in financials, mainly invested in South African, Kenyan and Egyptian banks.  "The bank space is very underpenetrated as very few members of the population have bank accounts. In Kenya there are 45 banks, while there are more than 20 in Egypt, so there are plenty of opportunities for consolidation," he said. He said the banks will benefit further in a rising rate environment as they will be able to increase the amount they charge to lend mon...