Question: What is the investment outlook for Africa?
The investment outlook for Africa is positive. There is a growing realisation that Africa’s resources must be tapped if the needs of China, India and other fast-growing emerging markets are going to be met. Moreover, it is not only Africa’s mineral resources that are attractive but its agricultural potential and the abundance of water that will decide the rise and fall of nations in the future.
With regards to the outlook for the region’s capital markets and investments in equity and bonds, it is a mixed picture. There are many opportunities for private equity since capital markets in many countries are not fully developed so direct foreign investment is needed as a starter.
In the public equity arena, there are some markets that are now developing rather rapidly. The same goes for the bond market. But those markets have a long way to go before their potential if fully realised. Nevertheless we are very active in investing in Africa with substantial holdings in our Frontier Markets funds.
Question answered by Dr Mark Mobius, executive chairman of Templeton Asset Management
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