Discussions are currently underway between market participants in Nigeria, Kenya and South Africa to launch the cross listing of Exchange Traded Funds (ETFs), a move afoot that will lead to improved liquidity on Africa’s exchanges.
Pan-African investment holding company Kagiso Tiso Holdings (KTH) has completed the issuance of R800m ($67.72m) senior unsecured floating rate notes under its existing Domestic Medium Term Note (DMTN) programme.
Barclays has partnered with the Bureau for Economic Research at Stellenbosch University in support of South Africa’s monthly manufacturing Purchasing Managers’ Index (PMI), a leading economic indicator.
South Africa remains exposed ahead of the next round of capital flow volatility associated with shifts in the US Federal Reserve policy, according to Novare Investments.
Traditional asset management, particularly the mutual fund industry, will grow at a compound annual growth rate (CAGR) of nearly 9.6% in 12 markets across Africa by 2020, according to a research from PwC.
By the end of 2016, West Africa should have a new virtual stock exchange integrating no fewer than 12 countries into one joined-up market place with one single order book for the whole region.
Many fund managers based outside the EU (42%) do not plan to raise capital from European investors in the near future, with 59% of this group avoiding the region due to concerns about the AIFMD, according to Preqin.
African debt remains attractive, even though many investors are sitting on the sidelines and waiting for clarity in light of the current global uncertainty, according to Standard Bank.
Botswana’s Choppies is well positioned to benefit from the growth of the formal retail segment in much of Africa, according to Peter C. Thoms, Founder & Portfolio Manager at Africa Capital Group.
South Africa’s newest majority black-owned and controlled asset management business with R62bn ($5bn) AUM, in which MMI Holdings will be a shareholder, is set to commence operations in October 2015, according to CEO Designate Sibusiso Mabuza.
Allan Gray’s Africa ex-SA Equity Fund has generated negative returns for the last quarter, however the asset manager believes that the fund’s largest holdings Econet Wireless, Umeme and Zimplats offer attractive buying opportunities.
Africa from an investment perspective is by no means a finished product, but in a world of low growth and mature markets, it is essential for global minded investors to understand its potential, Rory Ord, Principal at RisCura, has said.
High profit margins and returns tend to sustain longer in Namibia than in some other African regions, Cavan Osborne, Portfolio Manager, Old Mutual Equities at Old Mutual Investment Group, has said.
The Sustainable Energy Fund for Africa (SEFA) has approved a $1m grant to launch the first phase of a Green Mini-Grids (GMG) Market Development Program (MDP), which will be implemented by the SE4ALL Africa Hub in coordination with SE4ALL’s Clean Energy Mini-Grid High Impact Opportunity stakeholder group.
