- March 6, 2017
- Posted by: ABO Capital
- Category: Publications by Zandre Campos
Conventional wisdom holds that Africa’s fortunes have dimmed, due primarily to lower oil and commodity prices.
To be sure, foreign direct investment in Africa dropped 46% in the second quarter of 2016, according to the Organization for Economic Cooperation and Development. An Ernst & Young report, quoted by the Web site IOL.com, notes that “investor sentiment towards Africa is likely to remain somewhat softer over the next few years.”
But if Africa were a stock, it would be a value play. Africa’s strong fundamentals point to real momentum in coming years. It’s true that the investment landscape has changed and there have been both economic and political hits in recent years, but this has not derailed the continent’s growth story. The International Monetary Fund projects that Africa will be the world’s second-largest economy within the next few years.