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Africa's capital markets on the boil
AFRICA'S capital markets are "on the boil" as investors across the world are exhibiting a greater appetite for investments on the continent while new opportunities are presenting themselves for African stock exchanges.
However, the major challenge facing exchanges was to match investors with investments, said Nicky Newton-King, Johannesburg Stock Exchange deputy chief executive.
Presenting a paper during a session on capital markets Absa Capital chief executive John Vitalo agreed, saying that there was now an enormous amount of interest in Africa from investors overseas, although the interest was discriminating and investors distinguished between countries and the underlying quality of investment on offer.
However, the amounts required so far exceed the money available in the capital markets of African countries outside South Africa. About 75 percent of African market capitalisation was on the Johannesburg Stock Exchange.
An interesting feature of present-day African capital markets was the changing risk-return ratio and the advent of institutional investors along with hedge funds and private equity.
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