Sub-Saharan Africa’s trove of precious metals and gems once funded the expansion of colonial empires. Over the past two decades, a new breed of prospector has begun staking claims, this time using capital to unearth profits.
Risk has risen, though. Emerging markets turmoil has undone public equity markets around the world. Sub-saharan economies have suffered in particular, as many depend on commodities for their export income. The MSCI Africa (excluding South Africa) stock price index has fallen nearly a fifth this year, trailing far behind the MSCI Frontier Index.