Investors are moving into Africa

Buying stocks from companies located in Ghana or Kenya or bonds issued by Zambia or Nigeria might not sound like a good bet to the average investor, but institutional fund managers are moving into these assets at a historic pace.

During 2017, stocks and bonds issued from so-called frontier markets — countries too small or with capital markets too underdeveloped to be labeled emerging — saw capital flows to rise to around $141 billion. That was the highest level since 2007, according to the Institute of International Finance.

One part of the frontier market asset class that has caught fire of late is Africa.

“Overall, we are positive on Africa and have incrementally added to our positions there as the outlook has kept improving through the last year or so,” said Pradipta Chakrabortty,…

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