There are a handful of exchange traded funds that invest in Africa to explore opportunities in this frontier market if investors aren’t afraid of risk and volatility.
“Since the start of the century Africa’s substantial growth as an investment destination has been driven by improved macroeconomic fundamentals, increased political stability, higher commodity prices and robust domestic demand,” Eugene Visagie , risk manager at Novare Investments, said on BusinessLive. [Investing in the Last Frontier]
The use of ETFs to access this region is logical. The hardships associated with investing in this area of the globe such as liquidity restrictions and foreign ownership red tape are avoided with the use of an ETF. Plus, the higher trading costs, exchange controls and general lack of liquidity are not an obstacle. [Best Emerging Markets ETFs]
Visagie points out that emerging markets such as China and India have successful ETFs that track their broad market. [Africa ETFs; Exposure to a Potentially High Growth Region]