Private equity fund managers, who adopt longer term time horizons than traditional asset managers, are showing renewed interest in African investment opportunities.
Commenting on the performance of private equity in Africa, Derrick Roper, CEO of Novare Equity Partners said that while uncertainty and market volatility have clouded the investment outlook for the continent, investors who stick with their objectives instead of being influenced by short-term noise will benefit from the inevitable rise of Africa’s consumer.
“After a tumultuous 2015, market volatility in Africa is expected to persist as economies absorb the impact of slowing growth in China and falling commodity prices. These factors present formidable challenges that are currently over-shadowing Africa’s longer term potential. However, this stage of the economic cycle will create opportunities for solid future investment returns. When everyone is running for the hills is usually the best time to buy,” he said.