This time last year, Africa’s relatively untapped equity markets were being tipped as one of the best investment opportunities on the planet.
Amid a raft of fund launches, a steady stream of investors scrambled for their piece of the pie. The buying continued even after equity markets in the rest of the world turned sour; African regional equity funds attracted net inflows of $247m (£170m, €187m) in the first seven months of 2008, according to EPFR Global, a data provider, with a further $1.3bn flowing into Middle East and North Africa funds. Outflows from more established emerging markets hit $22bn over the same period.
That African equity markets should have fallen since those heady days, and net inflows turned to net outflows, should come as no surprise. With far more developed markets facing financial hurricanes, the winds of change were bound to reach Africa.
No comments:
Post a Comment