Africa investment : From FDI to AIA

* Intra-African investment rising by more than 30 pct a year* Pension fund assets set to grow as Africans save more* Some African funds are already continental investorsBy Tosin SulaimanJOHANNESBURG,

GIBS Information Centre / GIBSIC‘s insight:

Africa development – ” . . .Like the rest of the developing world, Sub-Saharan Africa’s stock of capital is set to balloon in the next two decades and will rise to $23.3 trillion in 2030, from $11 trillion in 2010, according to a World Bank report published in May.

BIG PLAYERS  –   Pension funds in Africa could become prominent continental investors, though analysts say many will need to update their asset allocation regulations.   –   Renaissance Capital estimates that total assets under management of sub-Saharan Africa’s six biggest pension funds could surge to $622 billion by 2020, from $260 billion in 2010, and by 2050 they could balloon to $7.3 trillion.   –   Africa-focused private equity firms are already tapping local pools of capital. Emerging Capital Partners said 44 percent of investors in its third Africa fund established in 2008 were local institutions, up from 26.8 percent in its first fund set up in 2000.   –   Helios Investment Partners hopes African institutions can become an even larger part of its investor base, said partner Dabney Tonelli. “Given the growth of pension funds … you see the potential for these institutions to become the big players in African private equity,” she said.   –   South Africa‘s Government Employees Pension Fund, the continent’s largest with around $120 billion in assets, is investing 1 percent of the fund in the rest of Africa, but can invest up to 5 percent.   –   Namibia’s $6 billion Government Institutions Pension Fund (GIPF) has a 27 percent allocation to South Africa and 8 percent to the rest of the continent, where it is investing in both listed markets and private equity, Chief Executive David Nuyoma said.”

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