Sub-Saharan Africa encapsulates the best of what the next generation of emerging markets has to offer investors in terms of potential investment returns over the long term, according to HSBC Global Asset Management.
“Nigeria is our favourite market in Sub-Saharan Africa. Financials are showing robust potential while consumer brands are also enjoying strong growth. Kenya, the regional hub for trade and finance in East Africa boasts - as is the case with frontier markets in general – cheap valuations and a number of advantageous macroeconomic factors, resulting in what we believe is a positive outlook. The telecommunications sector there has long-term investment potential given its ties to mobile banking, a rapidly growing sector,” Andrew Brudenell, manager of the HSBC GIF Frontier Markets fund, said in a statement.
The fund’s largest holdings are in the financial, telecommunications and energy sectors.