African private equity funds will struggle in fundraising through 2009 as investors have withdrawn from the market, says Rod Evison, a managing director at UK government-backed, emerging markets-focused firm CDC.
Evison predicts that African funds launched in the second half of 2008 will struggle to reach their targets due to the current withdrawal of international investors from the market.
Gross domestic product growth in South Africa in 2009 is likely to be between 2-3 per cent, well below the 5 per cent level that was sighted in 2007.
In Nigeria in 2009, growth is expected to remain around 6 per cent.
Subscribe to:
Post Comments (Atom)
I don't believe the negative prediction.
ReplyDeleteAccording to Moin Siddiqi of African Business Magazine in November 2008 publication, Article "Private equity flocking to Africa" The growth of private equity funds in Africa is now on a par with Latin America and Russia and is expected to triple in size over the meduim term, making it the fastest-growing asset class.
The credit crunch and global asset re-pricing in Western markets have led yield-hungry investors further afield for higher returns and diversification.
"Africa is the largest and most exciting of the frontier markets group and everyone wants to be part of it,"
The market sizes in Africa and Asia are quite promising for the right kind of ethical businesses.
ReplyDeleteWe wish to invite potential investors at a private university.
www.garunar.wordpress.com
The prediction is partially true. However, I have yet to see any prediction about the African markets to be correct. There is no real track record in most of Africa's markets, this is the beauty of it. Yes, there are risks and those investors who can tolerate the risk will put money into the continent and reap the returns.
ReplyDeleteAfrican Governments and Private Sectors must learn to take the future of Africa in their hands. Africa can not afford to leave its future in the hands of foreigners. Africa has the most untapped and promising market in the world, because like in Nigeria the population is enormous, the economy is bouyant, the natural resources abundant the human resource excessive, yet we are waiting for Equity funds from overseas, have we ever consolidated our potential have we mobilised our numbers have we exhausted our potential before we revert back to the same foreigners who put us in this mess? www.vic-3-ltd.net
ReplyDeleteSurely, people are saying China, not forgetting India too, will lead us out of the doom Recession, in depressed minds of globalization-businesses. Really we gotta invest and form allies to earn millions together in Asia and Africa, globe trotting is the way. Garunar welcomes partners who care about education.
ReplyDelete