The search for higher returns, Africa’s attractive GDP and demographic growth — and the acknowledgement that there must be external sources of infrastructure investment for that growth to continue — has led to a certain optimism among many investors looking at Africa. The trends are creating interest, but it is guarded optimism. Institutional investment in Africa infrastructure is still modest and barriers to investment, while improving, still exist.
“It is interesting — we have looked at the opportunity in Africa and looked at a couple of managers,” says Asif Hussain, partner at Caledon Capital Management. “There is a good macroeconomic story with solid demographic trends, especially when you compare them to the sluggish growth expected around the world over the next five years. That doesn’t directly translate into investment success, but there is a real demand for both new infrastructure and updating existing infrastructur