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Larry Seruma From Komfie Manalo, Opalesque Asia:
New York-based, Africa-focused Nile Capital Management, manager of the Nile Pan Africa Fund, is bullish on Africa and is viewing the potential for long-term growth in Africa to be extremely strong because of heavy demand for natural resources in Africa from developed and emerging countries.
Nile Pan Africa Portfolio Manager Larry Seruma added that the low interest rate environments on the continent could attract developed markets investors to seek higher yielding assets in emerging and frontier markets.
Seruma said in the fund’s monthly newsletter: "We believe the investment case for Africa will continue to be underpinned by three themes. First, Africa is rich in natural resources. The continent contains 13% of the global reserves for oil, 50% of proven gold reserves, 60% of cobalt and 90% of the platinum group reserves, to mention a few. Africa will continue to supply the world with basic raw materials as demanded by countries looking to industrialize.
"Second, Africa's rising consumption is driven by its demographics. The continent's young population will fuel more demand for goods and services, relative to developed countries that spend more on social security, health care and entitlements. Finally, valuations are attractive. Africa's markets are less followed, companies and households have low levels of debts, countries have better fiscal balan...................... To view our full article Click here
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