In the last few years, Africa has benefited from LPs' efforts to build their emerging markets allocation – albeit not to the same extent as the likes of China and Brazil. Now, with the BRICs losing some of their sparkle, it may shine again.
After all, growth is not hard to find in Africa: some of these countries are enjoying the kind of growth rates and positive demographic trends that developed economies can only dream of. And this is creating opportunities in a number of different sectors.
This supplement explores some of these opportunities – as well as some of the challenges still involved when investing in Africa, like its mixed performance record, the ongoing political and currency risks, and the impact of increased competition on pricing.
Private equity still has an important part to play in the development of Africa. But investors would clearly benefit from greater clarity about the risks and rewards.
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