The eyes of investors on the African market


Intends to global institutional investors to do the job FIRST steps towards Africa during the next five years to promote investments from the current low levels to levels much higher.

A report issued by the Abu Dhabi Investment Company specialized in the management of investment funds in cooperation with the Economist Intelligence Unit for a marked shift in this direction. The report is based on a survey conducted by the parties and included 158 of the top executives in a variety of institutions including insurance companies, pension funds and donations.

Middle class

The results of the report which was distributed in Abu Dhabi and London to the attention of the most important investors in the world tend primarily to the middle class is emerging in the continent where it is believed 51% of survey participants that Africa will become the most attractive investment destination in the next decade ago.

Plans all covered by the report investments in Africa more or less by the year 2016 and expects a third transfer 5% of the total money at least to the African continent, note that half of the investors participating in the survey pointed to the lack of ownership at the present time, no investment in Africa or that the exposure on the continent does not exceed 1% of the total investments.

Positive results

He said Nazim al-Qudsi, Chief Executive of the Abu Dhabi Investment Company, which manages investment funds in Africa and the Middle East: These results are very positive for the African continent as the flow of strong capital would be insufficient to provide many job opportunities and raise income and attract more investment.

He added that institutional investors began to note the positive atmosphere witnessed by Africa with improved corporate governance frameworks and decreased reliance on the extraction of underground resources and the growing role of the middle class.

Included a list of ten economies the fastest growing in the world between 2001 and 2011, six African countries are expected to grow consumer spending in the continent by 60% to reach $ 1.4 trillion by 2020, with a high number of households with an income of a stable rate of 50% for up to 128 million households .

It is noteworthy that five surveyed work for companies with assets under management worth more than $ 10 billion and a member of another fifth to companies ranging from the value of assets under management between 1 to 10 billion dollars, while 27% worked in companies ranging from the value of assets under management between $ 250 million and one billion dollars . Were distributed among the participating institutions surveyed are geographically evenly between North America and Western Europe and the Asia-Pacific and the Middle East and Africa.

Investment opportunities

In the view of institutional investors that Africa which has many promising opportunities: think 51% of the investors participating in the survey that Africa will become the fastest growing investment destination over the next decade. Seen 66% to the African continent as the most important emerging market in the world, followed by the order in all of Asia, and Latin America, the Middle East, Central and Eastern Europe.

The rising middle class of the most important attractions: put 39% of investors’ rising middle class in Africa at the top of the three most important reasons for investment, followed by high economic growth (35%), and high commodity prices (34%).