Global fund managers see Africa as next investment haven

Global institutional investors plan to boost their asset allocation in African markets over the next five years, and are shifting to long-term investment strategies for the continent, instead of more speculative, short-term bets, a survey showed.
51% of the 158 investors polled by Invest AD and the Economist Intelligence Unit agreed that Africa's frontier markets -- which are the smallest, less developed and less liquid countries that make up emerging markets -- will offer the best overall prospects for investment growth in the next decade.
Two-thirds of investors with an interest in frontier markets see Nigeria or Kenya holding the greatest opportunity, putting the continent ahead of frontier markets in Asia and Latin America, the survey showed.
Investors eye Africa's emerging middle class as the most attractive aspect for the continent, which until now has been a largely natural resources play.
In terms of popularity with investors, Nigeria and Kenya top the list, followed by Zimbabwe, Egypt, Ghana and Libya.
"Africa's biggest challenge is to overcome deeply entrenched perceptions. But a striking shift that can be observed among investors is a change in focus from macroeconomic and political worries towards more technical market concerns," the survey said.
One in three investors expect to put at least 5% of their portfolio into Africa by 2016.

We are creating jobs in US, Europe: India Inc to Obama

 


With HCL Technologies announcing 10,000 jobs for locals in the US and Europe, India Inc on Thursday chose the WEF meet to send a strong message that Indian IT firms are creating and not stealing jobs in troubled western economies.
Also, a message emerged from British Prime Minister David Cameron's advice to the European Union (EU) that instead of being a threat, the emerging economies like India can be of great help to Europe.
Concluding a Free Trade Agreement (FTA) with India by the year-end would be in Europe's interest, he said.
"We need to have a check-list to tackle the euro crisis... There has to be FTAs, bilateral trade agreements and EU trade agreements with countries like India and Singapore, among others by the end of the year," he said.
His plain-speak to Brussels (EU headquarters) comes against delay in trade-opening pact with India.
Barely a day after President Barack Obama hit out against outsourcing, HCL Technologies' Vice Chairman Vineet Nayar made a major announcement here that his company would create 10,000 locals jobs in the US and Europe in the next five years.
"Companies in today's world of globalisation need to create jobs wherever they go. We have taken a pioneering step...," he said.
Wipro chief Azim Premji, known for his frank talk, said the issue of outsourcing is "getting hyped up since elections are coming up... The US has become over-sensitive on jobs".
Chairman of Mahindra Satyam Vineet Nayyar hinted at creating jobs in the western economies from where they get bulk of business. "Indian firms when they go overseas, will have to create jobs there. We will certainly do so," he said.
German Chancellor Angela Merkel also wanted investment in Europe to create employment.
Obama in his State of Union address had hit out at outsourcing.

       
"No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here," he had said.
Amid economic uncertainties and rising unemployment in the western world, the focus is on generation of jobs.
On Wednesday, Citigroup chief Vikram Pandit had said that job-creation was the single biggest issue, both in developed and developing markets.
According to him, 400 million new jobs could be needed to be generated in next 10 years.
Indian IT industry, which rakes in about $60 billion revenues from overseas markets, depends significantly on outsourcing of business processes of the Western companies.
Painting a pessimistic outlook, the International Labour Organisation earlier this week had said that urgent attention is needed to create 600 million new jobs in the next 10 years.