Africa has hitherto been a blank space on the investment map. But interest is mounting. Its GDP has been growing at an average of 5% since 2001 and is set to keep expanding by 5.6% until 2012, according to the IMF.
A vital reason is the commodities boom; foreign investors, notably the Chinese, have been ploughing billions into Africa in order to grab a share of its abundant natural resources.
But debt relief, improved political stability and macroeconomic management are also part of the story. Most countries are stable and have trimmed debt and lowered inflation and interest rates, says Standard Bank's Dylan Evans. Merrill Lynch reckons that the continent "may be about to enter an unprecedented stage of economic development".
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Specialist funds are starting to spring up. Fidelity International has started a fund covering Africa, emerging Europe and the Middle East, while South Africa's Stanlib is launching the Dublin-based Standard Africa fund to invest in up to 20 African markets, excluding South Africa (the minimum investment is $50,000). Justin Urquhart-Stewart of Seven Investment Management tips the newly launched, Aim-listed PME African Infrastructure Opportunities fund (PMEA).
For more, see our recent cover story Why you should join the new scramble for Africa.
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