Looking to invest? Broaden your horizons
South Africans looking to invest in shares in other African countries need to do so through specific fund managers — investing in individual shares isn’t as easy
South Africans looking to invest in shares in other African countries need to do so through specific fund managers — investing in individual shares isn’t as easy.
"It’s very easy to invest in a unit trust that invests in those markets but directly investing in stocks requires you to open a broker account or find a stockbroker," says Investec Asset Management’s Richard Ladbrook.
Dedicated Africa funds make it easy to invest in other African stock exchanges, adds Imara Asset Management’s Craig Bandason. "There are quite a few Africa funds out there, and investors should choose managers that have been in the markets for a long time."
Frank Kahumba, an equity analyst at Momentum Securities, says the JSE offers some exposure to African countries and their exchanges. For example, African stocks listed on the JSE include Vivo Energy, which operates Shell garages on the continent.
Pension funds have also shown interest in investing in other African countries. However, Kahumba says there is room to widen this if regulations encourage investment.
"Trading companies in SA should offer more platforms like exchange traded funds to help investors here participate in other markets," Kahumba says.