March 2017 |

Why Investors Should Consider A “Private Equity Approach” To Africa

LAGOS (Capital Markets Investors are desperately searching for new opportunities in order to counter the challenging current low-interest rate environment. For those who have turned to “frontier markets”—and particularly Africa—there has been something of a roller-coaster ride. In 2000, as the world entered the new millennium with great optimism, Africa was viewed with suspicion. It was even branded “the hopeless continent” by The Economist. And yet, between 2002 and 2008, the African stock markets enjoyed…

Kenya Stock Markets: Identifying Opportunities in 2017

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – The Kenyan stock market is going through a hard-hitting period, one that has been prevalent for the last three years. In 2016, the stock market carried on its lackluster performance registering a 29.7% y/y drop in turnover to USD 1.5B for the second year running, having shed 2.9% y/y in 2015. Foreign investor participation remained dominant, averaging at 67.8% compared to 59.4% in 2015. The NSE 20 share index…

Mauritius’ Investment Prospects in New Dawn

Posted on by The Editorial Team

PORT LOUIS (Capital Markets in Africa) – The start of 2017 was marked by the resignation of Sir Anerood Jugnauth as Prime Minister (PM) who was replaced by Mr. Pravind Jugnauth. This ended months of speculation and resulted in a reconstituted cabinet. The new PM who kept the “Finance” portfolio, delivered an address which emphasized continuity on the most recent National Budget. Markets prefer certainty – a state of affairs – which this re-shuffled cabinet is…

Nigerian Equity Markets: Key Drivers Still Under Siege

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Analysis of market performance in 2016 indicated that although a combination of poor corporate releases as well as weak macroeconomic fundamentals contributed to the negative return for the year, market volatility remained largely consistent with instability in the currency market. More specifically, while bearish sentiments persisted for most of 2016, equities rallied between May and July 2016 due to reforms in the Oil & Gas sector and adoption of…

The World a Better Place for South Africa for South Africa Investors

Posted on by The Editorial Team

JOHANNESBUGH (Capital Markets in Africa) – There are three big themes that we believe will dominate markets in the year ahead. These are Keynes is King, Reflation and South Africa Stabilises. The first two themes are about an improving world and better global growth, while the third theme is South Africa specific and has the biggest impact on the local asset classes in which we invest. Keynes is King The world has shifted. The big…

Preview of South Africa’s Budget Speech 2017

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – The upcoming Budget will be a critical one given there is no more room for the upward revision of deficit targets as seen over the last few years. As a result of the current slow growth environment, the tax increases and expenditure cuts set in October’s Medium-term Budget have to be adhered to if Treasury is to deliver a positive Budget. This is according to Senior Economist, Johann Els,…

Investing in African equity markets today: Zimbabwe as a case study for sub-Saharan Africa

Posted on by The Editorial Team

HARARE (Capital Markets in Africa) – A decade after its first disastrous flirtation with hyperinflation, Zimbabwe is once again on the economic precipice with the effects being conspicuously similar. Supermarket shelves have started to empty, some public and even private sector salaries remain unpaid, banking hall queues are getting longer and hospitals are short of basic supplies. Whilst the humanitarian state of affairs is critical we find the microeconomic structures persistently durable given that businesses continue…

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