RENEW Strategies

Davos Discusses Investment in Africa

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Joshua Weissburg
| February 3, 2010

Ed Cropley and Ben Hirschler of Reuters filed a special report on Africa from Davos last week. I've included a brief excerpt below. Note that the long-term "buy" recommendation, that analysts gave before the financial crisis, persists.

  • Investors with cheap cash needing to spice up returns in more obscure parts of the globe are asking whether Africa can shift from final investment frontier into the emerging market mainstream. Reflecting this interest, Africa gets top billing at the annual meeting of the rich and powerful in Davos this week.
  • "Not investing in Africa is like missing out on Japan and Germany in the 1950s, Southeast Asia in the 1980s and emerging markets in the 1990s," said Francis Beddington, head of research at emerging market investment house Insparo Capital.
  • He believes that in the long term, Africa has the potential to be home to a sizeable chunk of the factories and warehouses of tomorrow's world.