Regions and sectors within Africa that appeal to investors

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Attractiveness of different regions within Africa

By investor group

By location

By location excl. DFIs

By location excl. FoFs

By location excl. DFIs and FoFs

Overall more than half of the respondents surveyed said that either no region was more attractive or that Sub-Saharan Africa was the most attractive, this is particularly true for African LPs. This was followed by West Africa and Southern Africa.

Most attractive sectors in Africa in the next three years

By investor group

By location

By location excl. DFIs

By location excl. FoFs

By location excl. DFIs and FoFs

Africa’s large population and growth of per capita income make it an attractive region for consumer-oriented businesses. The consumer discretionary, financial and consumer staples are seen as the most attractive sectors in the next three years. These three sectors were cited by limited partners as being the most attractive due to a combination of growth areas, capital needs and company valuations. The industrials sector, mining and real estate were considered to be the least attractive.

There are some striking differences when results are analysed according to limited partner categories. Although consumer discretionary still appears to be the most attractive sector, pension funds are of the view that the energy and power/utilities sectors will be the most attractive sectors over the next three years. Reasons cited for this view include on-going transformation in the energy and power utilities sectors, which will make them appealing for long-term investors. In addition, typical bank financing is not currently available for these sectors. DFIs rank the energy sector as the most attractive, equally attractive as consumer discretionary over the 3-year period.

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