Risk-loving, intrepid investors looking into frontier markets and related exchange traded funds (ETFs) may also take a gander at markets in Africa, if the International Monetary Fund has any say in the matter.
Economists predict that 15 of the 20 fastest-growing countries for 2009 will be in Africa, reports Stefanie Eschanbacher for fundstrategy. According to the IMF, some African countries may become the “second generation of emerging markets” with macroeconomic performances on par with those of Asia countries’ back in the 1980s.
Africa has the untapped potential for growth and could result in increased income per head with a new middle class. The political and social environment is becoming more stable, and there are institutional reforms that have set interest rates and sound monetary policies. Make no mistake, though: Africa is still a volatile continent and there are risks involved when looking to frontier markets for investment.
Full Story: http://www.etftrends.com/2009/04/why-africa-could-be-the-region-to-watch-with-etfs-this-year.html