Africa News Update

On Africa

Africa prospects lure investors, but is it ready

by noreply@blogger.com (Africa News Network) by Matthew Tostevin and Stuart Grudgings

Africa offers among the world's best investment prospects as emerging markets grow ever more important, although its economies risk being destabilized by the slew of capital they stand to attract in coming years.

Energy-producing continental giant Nigeria was identified as a top pick by some of the most influential figures in emerging markets finance who spoke to the Reuters Emerging Markets Summit in Sao Paulo in July.

Africa withstood the financial crisis better than many predicted, and the region's economic growth is forecast at 4.75 percent in 2010. Next year, half of the world's 10 fastest growing economies are expected to be in Africa, and it is now attracting more than just the most intrepid investors.

Why Africa won't be the next BRIC

by noreply@blogger.com (Africa News Network) by Barney Jopson

Prompted by the recent (August 2010) application from South Africa for Bric “membership,” the man who coined the acronym - Jim O’Neill of Goldman Sachs - asks in the Financial Times (August 27 2010)  whether Africa as a whole could become the next Bric.

"The latent interest in Africa is enormous," said Stephen Jennings, chief executive of Russian investment bank Renaissance Capital, speaking to the meeting by video link from Moscow. "Before the crisis there were probably 40 people or groups establishing Africa funds. In 3-4 years you'll have 100 Africa funds and the biggest one won't be $2 billion, it'll be $20 billion."

Angola stock exchange to rank 3rd in Sub-Saharan Africa market value

by noreply@blogger.com (Africa News Network) by Colin McClelland

A proposed stock market in Angola, which vies with Nigeria to be Africa’s top oil producer, will rank “at least third” in sub-Saharan African market capitalization, Imara Asset Managementsaid.

Angola’s stock exchange will trade shares in companies worth a total of $40.7 billion, a similar size to Nigeria’s stock market, Anthony Lopes Pinto, an analyst for Botswana-based Imara, said yesterday in an interview from Angola’s capital, Luanda.

“Based on the country’s GDP, we estimate that Angola has the potential to support a stock market ranking of at least third in sub-Saharan Africa,” Pinto said.