Investing in Africa: catch-up time
When they are not ignoring Africa altogether, big-hitting institutional investors regularly bemoan the continent’s illiquid small markets, political insecurity and shaky regulations, or fret that despite pretty decent returns little or nothing would make them touch the continent right now.
But as Africa’s economies grow and its nascent middle class starts spending into the trillions of dollars, with all the accompanying developing of banking, insurance, construction, retail and more, it is time for catch-up. Nevertheless, some simply can’t fathom the best route in, be it through stock markets, private equity or even property.
“I don’t think much is missing other than time,” Janusz Heath, managing director of Capital Dynamics, a Swiss private equity group with more than $20bn under management, told a room of Africa private equity specialists gathered in Nairobi on Tuesday.
On that reading, many in the room have long since time-travelled: some started investing in everything from Africa’s fledgling stock markets to pumping millions into its family-owned businesses years ago.
