Africa Seminar Article from Swedish newspaper…

The Asian tigers have been joined in the economic investment jungle of African lions. More and more investors turning their sights toward Africa. “Interest has increased substantially in the last six months,” said Thomas Raber from Alvine Capital. Recent reports by the Boston Consulting Group, Goldman Sachs and McKinsey have helped change the perception among asset managers and investors in the West’s financial district. “Recent inflows into the region have picked up. The feeling is quite clear that Africa is more interesting than ever before, “said Thomas Raber, Managing Director and founder of the Advisor Alvine Capital in London. Among Africa’s 53 countries South Africa is the most developed economy, however Nigeria, Egypt, Sudan and Kenya are now regarded as attractive investment locations. Nigeria, for example, with its population of 160 million looks set to become an increasingly important growth engine on the continent’s, with the continents growth even becoming larger than that of Germany’s economy, according to Goldman Sachs. Among the factors that suggest this is Africa’s a growing middle class. Today, the continent has 50 million people who belong to middle class. This figure is predicted to rise to 400 million by 2050. “Even today, Africa has a larger middle class than India,” says hedge fund manager Patrice Moyal of Visio Capital. He manages 1.1 billion U.S. dollars and invest in listed companies in particular South Africa, Nigeria and Egypt as well as Zimbabwe. He points out that Africa’s retail index has risen 47 percent this year and that the example Guinness beer brand, and Nestle sees double-digit growth for its products in Africa. Another who see Africa as a gold mine when it comes to investment opportunities is David Murrin. He has worked at JP Morgan, and since 1997 its first emerging markets fund focusing on Africa. His company Emergent and Emvest makes direct investments into both companies and agricultural properties, particularly in East Africa. “For entrepreneurs, there are opportunities everywhere. Our problem is that we are under-capitalized, “he says. “Those who do not invest now in Africa risk losing all the opportunities available. It is much harder to get high returns on their investments in the U.S. or Europe as the treasures rise and growth stagnates. Even the worst manager can succeed in a market that is growing. For a good manager, you can barely keeping money in a market that is on the way out. ” Fund of fund manager Sven Soderblom of Arcano, who specializes in Latin America and Africa, confirms that the increased interest in Africa but stresses that we are early in the investment curve. “We get more and more questions about Africa, from pension funds and insurance companies, people are starting to get seriously interested. The question is whether it would be a direct investment. We have not seen large inflows as yet “he reports.