Tags: IMF | London Stock Exchange | South Africa

Investment Appetite Grows for African Markets

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Tuesday, 28 Oct 2014 08:59 AM Current | Bio | Archive

African markets are seeing a growing number of Western investors taking an interest, especially in the newer African stock markets.

The stock markets provide an ideal vehicle for transparent investment within a legal framework, a valuable asset to the foreign investor operating in unfamiliar territory.

According to the news site Fin24, “The IMF predicts sub-Saharan Africa's economy will expand by 5.1 percent this year and 5.8 percent in 2015 — the highest growth outside Asia — despite the heavy economic toll from the Ebola epidemic.”

A unique opportunity for African companies to access Western funds has seen countries like Tanzania, Mozambique and Uganda opening their own markets.

The number of African markets has doubled since the 1990s.

One of the challenges regarding African stock markets is the view that Africa is a single entity. Economic and political stability varies dramatically over geographic borders. Stock markets therefor have to tailor their offering specifically to their clients and companies.

The London Stock exchange has been on a marketing drive throughout Africa, offering their trading systems and technology to potential markets and tempting African companies to double list. While this is an opportunity for growth one must be weary not to adopt an international system that is not customized for the specific market.

As it stands South Africa’s, JSE — Johannesburg Stock Exchange — is by far the most developed African market with over 400 companies listed.

Egypt and Nigeria both trail with about half of that.

As new opportunities present themselves the world is watching the last frontier for potential exponential growth.

For more on this article visit Fin24.

Matthew Klynsmith earned a business administration diploma at CTI in Cape Town, South Africa. He now works at Strategic Options as an associate partner. To read more reports from Matthew Klynsmith, Go Here Now.
 









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The stock markets provide an ideal vehicle for transparent investment within a legal framework, a valuable asset to the foreign investor operating in unfamiliar territory.
IMF, London Stock Exchange, South Africa
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2014-59-28
Tuesday, 28 Oct 2014 08:59 AM
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