African investments have been overlooked for many years as a result of mis-placed perceptions fuelled by negative media coverage and generalisations of a few bad examples. The reality represents a very different picture and the quantity of world-class companies trading at wide discounts to fair value is beginning to be understood as Africa gains traction as a new investment frontier. Africa’s resource dominance is well known, but it is equally important to understand the significant consumption and production opportunities that this young population offers.
Through our detailed, bottom-up investment research process, we are able to unlock value across countries and sectors within our investment universe. High quality companies, with exceptional management and governance, are often priced well below our estimated long-term fair values. There are few global investment destinations that offer the combination of long-term earnings growth alongside compelling valuation levels.
The young populations of the key listed equity countries in Africa leave them well positioned to benefit from demographic tailwinds in the form of real per capital GDP growth and longer term from excess stock returns.
“The darkest thing about Africa has always been our ignorance of it.” George Kimble