Investing in Africa

Hello everyone! This is my first post here, sorry for my bad english.

I’d like to share with experts and passionates like you some of my ideas.

I decided to invest in Africa, with a long term view (10 years) and an high-risk/reward perspective. I don’t tell you now the reasons behind this decision (they are easily presumable), but how I will do it. I don’t want to discuss “why”, but “how”.

Africa is an illiquid, inefficient and information-lacking financial market. In such context ETFs (that I usually prefer) are not a good instrument. Theoretically, it should be easier to beat the market (benchmark) in this circumstances than in a developed/efficient market (such as US or Europe). Therefore the best investment choice is an active fund. Furthermore within the Active Funds, it is possibly better to choose a fund that doesn’t declare a benchmark but that pursues a Total Return (no geographical or sectorial allocation constraints). In a few words I am relying on the management’s knowledge of the market and expertise.

Does it make any sense for you? In such circumstances, is an active fund better than a etf?

Moreover I want to buy a fixed number of quote per month in order to reduce the volatility (what is the english name for this mechanism? In italian is Piano di Accumulo).

Any criticism or consideration is well-accepted (even about my english, I need to improve it :slight_smile: )

Where in Africa? Which brokers can you use? I’ve been trying to get access to Botswana or Rwanda.

You also might want to consider the Middle East if your taking that kind of logic.

Now would probably be a good time for this as well because the UAE and Qatar are about to be upgraded to “emerging markets” from “frontier markets” by MSCI.

Africa isn’t a country, there are stark differences between market in Nigeria, Ghana etc. compared to somewhere like Mozambique. I haven’t been brave enough to invest in any equities but went in with my dad and uncle on real estate in Nigeria, Gambia and Tanzania.

I’m specifically referring to sub-saharian african equity.

I can get your point (each country is different and it has specific elements), and for this reason I thought to rely on the fund managment expertise.

What I am considering right now is


(From Italy these are the only ones Active and purchasable)