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Nigeria, Kenya top Foreign Investors Preferred Investment Destinantions

By on January 25, 2012

According to a report based on a poll conducted by the Economist Intelligence Unit (EIU), more than 50% of foreign investors including hedge funds, pension funds and private banks see Africa as the most attractive investment destination over the next decade. 158 foreign financial institutions participated in the poll.

Within Africa, Kenya and Nigeria emerged as the preferred countries to invest, and fund managers are boosting their asset allocations to reflect their increasing appetite for exposure to opportunities in these markets.

Furthermore fund managers are reviewing their strategy from short-term speculative bets to long-term hold positions in order to capitalize on the growth potential of their investments.

After Nigeria and Kenya, Zimbabwe, Egypt, Ghana and Libya follow as preferred investment destinations.

The survey, titled, ‘Into Africa: Institutional Investor Intentions to 2016’, shows that international investors ave turned their focus on less developed and illiquid markets, countries like Kenya, Nigeria and Ghana are a perfect fit.

The report stated, “Even among frontier markets investors, most are only just starting to explore African markets, with one in five of those surveyed having zero allocations. Among larger investors with more than $10bn under management, this is closer to one in three. However, all expect to have some exposure to emerging Africa, with nearly one-third expecting to shift at least five per cent of their fund value there.”

 

One Comment

  1. Jaja

    January 26, 2012 at 3:11 pm

    Phew, been dying to get a good news about Nigeria.