Investec Asset Management is urging advisers to consider Africa as an option for offshore investors and insists they should not be put off by political and economic problems of the past.
Investec Asset Management investment strategist Michael Power says the Africa of today is characterised by far more transparency, accountability and good governance than it was a decade ago.
He says: “As each day passes, Africa has less to hide and more to celebrate and this means as each day passes Africa has more to offer the investor.”
Investec Asset Management offers the global gold fund which invests in the mining of gold and other precious minerals and metals and the emerging markets debt fund which invests in public sector, sovereign and corporate bonds issued by emerging market borrowers.
Power says that while there is some political risk involved, that is merely one component investors must assess when considering a potential investment.
He says: “There was a time in Africa’s quite recent past when the political risk was almost impossible to quantify. This meant that, whatever the probable reward, most investors shunned Africa. What now makes Africa so much more attractive to investors is that today prospective investors can begin to quantify – especially where it comes to political risk – what yesterday they could not.”