INTO AFRICA March 2018 Edition: Sailing Africa 2018 Investment Prospects

LAGOS (Capital Markets in Africa) – Welcome to the March 2018 edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. The edition is titled: Sailing Africa 2018 Investment Prospects.

After a difficult period from 2014 to 2016, African equities posted excellent returns in 2017, with the Zimbabwean Stock Exchange (ZSE) the top performer with triple-digit growth. The market gains are in line with performances recorded across the globe where stock markets such as the Dow, S&P 500 and Nasdaq closed at record-breaking levels. The ZSE, though driven by weak currency fundamentals, was the continent’s top performer after adding 130.42% in 2017. its biggest one-year gain since dollarization. The Nigerian Stock Exchange (NSE) put on 42.3% by the end of the year while the Nairobi Securities Exchange had gained 28.39% amidst of political unrest. Other notable gains were recorded in Zambia, where the Lusaka Stock Exchange put on 26.97%, while the Egyptian Exchange added 21.65%. The Malawi Stock Exchange was also firm after gaining 62.14% in 2017.

The rally in industrial metals and oil in combination with a decline of the US dollar against major currencies certainly helped African equities. But let’s not overlook the idiosyncratic drivers for listed companies in Africa, such as undemanding valuations and solid financial results. We also saw encouraging signs of further improvements in the political and institutional landscape across Africa during the last year. We expect 2018 to be another decent year for African equities in the base case since all those drivers remain firmly in place. For more insight read the article “The Prospects of African Equities for 2018 and Beyond” by PHILIPPE KOCH (Head of Fund Management, IPRO, Mauritius).

PLEASE CLICK TO DOWNLOAD – INTO AFRICA PUBLICATION: MARCH 2018 EDITION.