Africa the next big thing: Insync
Investors and stock pickers should look to opportunities in Africa, with multinational corporations experiencing significant growth on the continent in recent years.
Insync Fund Managers chief investment officer, Monik Kotecha, said the African markets were showing characteristics similar to those that have lured investors to Latin American and Asian markets in recent years.
Kotecha said the combination of population growth and rural to urban migration, had fuelled an increase in per capital income, with multination companies including Coca-Cola and Danone seeing sales volumes rise in Africa over the last eight years.
"A lot of incremental growth is coming from that region," he said.
"The expanding consumer market is a juggernaut of a trend that will last for many decades.
"In beer, for example, Africa will be the fastest growing geographic region with a lot of the growth being generated at high levels of profitability."
He said that Danone had seen sales jump by more than six times their 2008 in 2014, a trend Kotecha said was likely to continue, with the company generating more than €1 billion in sales.
Kotecha said that Africa was expected to account for more than half of the forecast global population increase of 2.37 billion by 2050.
AUTHOR
Nicholas O'Donoghue
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