{"id":7116,"date":"2012-01-17T20:49:57","date_gmt":"2012-01-17T18:49:57","guid":{"rendered":"http:\/\/www.myza.co.za\/01\/analysis-nigeria-strife-highlights-africa-investment-risks\/"},"modified":"2012-01-17T20:49:57","modified_gmt":"2012-01-17T18:49:57","slug":"analysis-nigeria-strife-highlights-africa-investment-risks","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/analysis-nigeria-strife-highlights-africa-investment-risks\/","title":{"rendered":"ANALYSIS-Nigeria strife highlights Africa investment risks"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>By Sujata Rao<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">LONDON<\/span> Jan 17 (Reuters) &#8211; Nigeria&#8217;s recent explosion<br \/>\nof violent political unrest is damaging the economy and forcing<br \/>\ninvestors to reassess their optimism over the short-term returns<br \/>\navailable there and elsewhere in Africa.<\/p>\n<p><span><\/span><\/p>\n<p>Stock and bond investors started looking seriously at<br \/>\nsub-Saharan Africa after 2005 when debt forgiveness deals paved<br \/>\nthe way for growth and reform across the continent. But anyone<br \/>\nseeking a killing from the hottest investment pitch of the time<br \/>\nwill have been disappointed.<\/p>\n<p><span><\/span><\/p>\n<p>Frontier market investors pumped $1.3 billion into African<br \/>\nequity funds in 2010 excluding South Africa, EPFR says, up<br \/>\n10-fold from 2005. Such markets are a rung below emerging<br \/>\nmarkets in terms of liquidity, size and transparency, but<br \/>\npromise strong returns.<\/p>\n<p><span><\/span><\/p>\n<p>Asset managers Rensaissance estimate Nigeria &#8212; two-thirds<br \/>\nof MSCI&#8217;s frontier Africa equity index and almost a tenth of the<br \/>\nbroader frontier index &#8212; took in half this amount, boosted by<br \/>\ndeep banking reforms and smooth 2011 elections expected to<br \/>\nunleash infrastructure improvements.<\/p>\n<p><span><\/span><\/p>\n<p>The country was also included by Goldman Sachs in a group of<br \/>\neleven most promising emerging economies after the BRICs.<\/p>\n<p><span><\/span><\/p>\n<p>Yet a dollar invested five years ago in MSCI&#8217;s Africa<br \/>\nfrontier equity index, comprising Nigeria, Kenya, Mauritius and<br \/>\nTunisia, would have lost 23 cents, Thomson Reuters data shows.<br \/>\nIn Nigeria, the loss is 36 cents. An investor in mainstream<br \/>\nemerging equities would have made a 22 cent profit.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;If you go back to 2006 expectations of frontier markets<br \/>\nwere very very high, that&#8217;s the difference between then and<br \/>\nnow,&#8221; said Andrew Brudenell, who helps manage $180 million in<br \/>\nfrontier stocks at HSBC Global Asset Management. &#8220;What you have<br \/>\nnow are very low expectations and very low valuations.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sujata Rao LONDON Jan 17 (Reuters) &#8211; Nigeria&#8217;s recent explosion of violent political unrest is damaging the economy and forcing investors to reassess their optimism over the short-term returns available there and elsewhere in Africa. Stock and bond investors started looking seriously at sub-Saharan Africa after 2005 when debt forgiveness deals paved the way [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7116","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7116"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7116\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}