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Mobius: Africa could be the emerging market story of the next decade

Emerging markets veteran’s prediction bearing fruits sooner than expected.

Last year, Mark Mobius made the prediciont that “Africa could be the merging market story of the next decade.” But progress is moving so fast that Africa the huge growth he expected in the future is happening now! Interactive Investor wrote an article highlighting the success of African equities. Here’s a snippet.

Ghanaian equities, for example, were up 50% over the five months to the end of May, Uganda managed 45%, and Kenya and Nigeria both rose 35%. All of these markets are small – even the largest, Nigeria, turns over just $120 million (£78 million) worth of trades each week – but such returns are forcing global investors to take notice.

Mark Mobius commented on why the region is doing so well…

The continent is well known for its wealth of natural resources, much of it barely developed, including oil and gas and a variety of metals and minerals, as well as huge tracts of agricultural land. Growth is creating burgeoning middle-class populations and dynamic domestic economies that provide opportunities for consumer companies, as well as a degree of insulation from the problems of developed markets.

Click here to read the full article.