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Benedicte Gravrand, Geneva: The first Jetfin conference on Africa’s hedge funds (details here) which took place in Geneva yesterday was very crowded indeed, indicating a high level of interest from investors. ‘Africa is one of the fastest growing regions of the world and this period stands out in Africa’s history,’ said the organiser. ‘It is a momentum change. More than 60% of the countries in Africa are functioning democracies. Economies are strengthening and diversifying as, fuelled by the commodity price boom and lower debt levels, currency stability improves.’
SSA: sustainable growth mixed with political risk
The African continent is currently enjoying its highest growth rate in four decades, said Cyrille Nkontchou, founder of a South African private merchant bank, LiquidAfrica. Economic growth is real and GDP per capital is increasing. A recent McKinsey study analysed the growth drivers of the 12 fastest growing Sub Sahara Africa economies by sector to better understand the drivers and found that SSA’s growth was primarily resources-led, but financial services and trade accounted for a significant portion of the overall growth.
However, political risk remains the key threat to the sustainability of Sub Sahara Africa’s economic growth as underscored in recent events in Kenya, Chad and Cameroon. Investors should keep an eye on key...................... To view our full article Click here
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