The strong growth in the African market began to attract investors

The strong growth in the African market began to attract investors 

When it comes to investing in emerging markets, Africa € ™ s stock market is hot. Sub-Saharan regional € ™ s GDP growth rate of over 5%, as well as Nigeria and Kenya's major markets, has risen more than 50% of the performance has been attracting more and more investors; in the past year. Africa's economic growth disadvantage is the country's savings and money is short. Despite the disadvantage is that a growing country, which will create an incredible opportunity for investors who are seeking a better return on investment than usual in its domestic market. 

North Africa, which is closely linked to the Mediterranean trade quite developed, some investors see a viable investment options. Therefore, South Africa, CONTINENTA € ™'s biggest economy, which has a slower growth rate than most of its neighbors, has developed more mature consumers and the financial industry. What it is, for most investors, the real source of excitement is "œfrontiermarketsâ? Sub-Saharan Africa, although slightly more than 200 stocks listed Nigeriaâ are liquid enough to allow mutual fund managers want to invest in the stock market, in Sub-Saharan Africa frontier region's largest market, only a small portion of the shares. Apart from establishing in Nigeria and Kenya markets, investors may find that some analysts called a big "liquidity cliff. "At this point, the next largest foreign investors in Zimbabwe, it has been said that in any given day, or even a well-known difficulties can buy and sell stocks. 

However, in other parts of the world in view of the political and financial troubles in Africa investor to buy a big picture story progress toward formal and regulation of economic and political stability, the rule of law, independence of the central bank and tighter accounting standards . And, as Africa € ™ stock market valuation deepen and begin to rise as a result of the progress of private equity firms will increasingly turn their attention to the region's market and seek opportunities that can provide a profitable return on investment.

 Even so, there are some concerns, as private equity investment in Africa is its equivalent in the United States and Europe are different, the family business may be reluctant to admit their control of the company through the sale of shares of the members of the investment community. This has captured the attention, investors have also expressed concern, the supply of fresh equity of African businesses may not be able to keep up with the needs of wealthy international buyers. Given the rich world of a typical transaction may involve the acquisition of established companies, and then load it with debt magnify returns to equity owners, investors quickly learned that in Africa, return on investment must come from revenue growth and efficiency gains, rather than from financial engineering.