Don’t miss out on the sub-Saharan African investment boat
Sub-region not only offering diversification opportunities, but growth indicators outperform most markets
As investors we are all aware of the need to diversify our exposure. Diversification reduces the volatility of our investment returns and has the benefit of not putting all your eggs in one basket. It is for this reason that the prudential limits for South African investors allow offshore investments of 30% within a pension fund (or other product managed under Regulation 28) with an additional 10% allowance for Africa excluding SA. There are many misconceptions about Africa and African investing. One of the common remarks we hear when introducing Africa to potential investors is: “I know, this is a high-risk investment with a high potential return.” Yet if we use the MSCI Index for Africa excluding SA and compare the returns and volatility of this index to a range of other global indices, this is simply not true. Over the long term, African equity markets (excluding SA) have outperformed developed, emerging and frontier markets and the S&P 500 Index. In addition, the volatility of t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.