By Laurium Capital

The Laurium Limpopo Africa Fund (USD) returned an estimated 1.9% for the month to date to May 31, 2026. Absolute performance was supported by stocks in Egypt, Kenya, BRVM, Nigeria, pan Africa and gold exposure, while relative performance was held back mainly by stocks in other resources, as well as weaker returns from Morocco and Ghana. The market backdrop remained mixed across the continent. African growth expectations for 2026 stayed constructive, but inflation pressure, tighter financial conditions and debt service concerns continue to shape sentiment. Within that setting, frontier and regional exchanges again showed very different outcomes, reinforcing the importance of stock selection.

Egypt contributed 1.0% to fund return, extending the recovery already seen in April. The broad theme remains that our stock selection in Egypt has been good, particularly in companies exposed to payments, telecom infrastructure, and domestic recovery.

Nigerian exposures have also added positively, contributing 0.3% helped by high quality financials and consumer names. Our domestic Nigeria weight increased from 12.5% in March to 15.9% in May, and the country has delivered positive relative contribution in each of the last three months. We undertook a detailed research trip to Lagos in May and have been building up the portfolio in areas we see improving operating conditions and earnings delivery.

Commodity positions remain in the portfolio primarily as a targeted source of alpha; however they do provide an additional benefit of diversification and risk management and this month illustrated both sides of that role: gold helped offset weaker areas, while copper and energy exposures created some drag versus the benchmark despite us being very upbeat about company specific prospects.

African growth expectations remain resilient, with East and West Africa still expected to lead regional expansion. We continue to favour a diversified portfolio of selected high-quality businesses with clear domestic demand drivers, disciplined balance sheets and the ability to grow through uneven macro conditions and remain positive about the regions potential to provide attractive returns.