The pros and cons of investing in Africa

ON AFRICA

Africa is a stock picker's paradise - if you can handle the volatility and lack of liquidity - explains Fulcrum's Alex Trotter.

The so-called African opportunity is becoming an investment talking point. Investor perception has moved from Live Aid to a focus on economic fundamentals. McKinsey have opened an office in Lagos, Nigeria and multi-nationals are being asked by investors about their African strategy. Diageo held a recent Africa day in London for analysts, with its regional head expecting stronger growth for Africa than Asia. Investors are also beginning to notice the positive divergence in frontier market performance from wider emerging markets. Fed chairman Ben Bernanke’s words in May shook emerging m...