What has changed since 2022?
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All data in our second Africa report points to growth and shows real change in global investment patterns and expectations. Global investor behavior shows that we’ve moved beyond the need to ‘demystify’ Africa. Over the last two years, the group of large institutions focused on Africa has expanded and been augmented by mid-tier, wealth and retail investors.
Investor sentiment in our 2024 report is unabashedly bullish. The result of somewhat abated market risk and FX headwinds shows in surging public market demand, combined with rapid growth in private markets where institutional investors are joining wealth and retail investors.
Investing into Africa has moved from idea to action, with the percentage of respondents pouring investment dollars into Africa growing to 63% in just two years. And that’s not the only positive metric. More indexes are including African assets, in aggregate or by country, exposing more investors to market performance and opportunity. That exposure and ease of investment are driving substantial inflows, particularly from under-exposed investors.
The African portfolio is expected to grow by 40% to USD 253m, and 50% of institutional investors plan to increase their allocations in the next two years. If you aren’t already looking at these markets, you are missing out. Learn why in this report.
Global investors are turning to Africa
Since 2021, double-digit investment growth has been driven by global investors taking advantage of more investment channels and the sizable opportunity to be found in Africa.
The biggest shift comes from North America, where pension funds have left the sidelines and are allocating significant AUM. Our earlier survey showed 20% of North American investors planning to invest in 2022. Fast forward to 2024, and we see a 67% investment - more than triple in just a few short years.
The newer North American investors join steady investment from Europe and the development organizations who have long ties to the continent.
Africa has piqued the interest of new tiers of investors too. Large institutional managers are joined by mid-sized asset management and asset owners, who have spotted the yield and diversification opportunities in Africa and ramped up investment accordingly – with more expected.
Cross-border investment levels remain high, giving Africa a solid base of regional investors who are more likely to directly invest in local markets. Rounding out the investor picture, Africa is seeing strong interest from development organizations, particularly in the Middle East.