With the exception of South Africa, public equities in sub-Saharan Africa are generally cheap. Buyers, however, are in short supply.
Against that backdrop, some contrarian investors see the dearth of buyers as an opportunity to gain a foothold in those exchanges before they become crowded and expensive.
“You have to invest now when people are negative. When everybody loves Africa, maybe in a few years’ time, then you leave,” says Andrew Lapping, the Cape Town-based deputy chief investment officer at Allan Gray, an asset management firm.