Africa a mixed bag of investment opportunities
The continent features slow growers as well as dynamic markets that warrant exploring
It would be wrong to paint the African continent with one brush, as many countries are at varying stages of their own macro and political cycles. Understanding these cycles and developments in relation to other earlier-stage frontier and emerging markets gives context to the investment risks and opportunities that present themselves.
Nigeria is well known for having the largest population in Africa, which the IMF estimates at about 200-million people. Typically, a large and young population with growing incomes drives a local consumption theme, with a long runway for sustained economic growth. Nigeria is also underpenetrated across many industries, notably banking, consumer packaged foods and telecommunications. Businesses that operate within these industries should see multi-decade growth. However, there have been some risks to this economic trajectory from time to time, the most prominent of which is the reliance of Nigeria on oil revenues (oil makes up the bulk of fi...
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