Take 15: Barriers to Investing in Africa (Video)
Tendai Musikavanhu, CFA, cofounder of One Stone Capital Group and Old Mutual Global Index Trackers Limited, shares his views on the obstacles to investing in Africa, such as insufficient information, illiquid markets, limited investor protection, and poor perception. He also explains why he think passive investing is better than active investing in Africa.
Here is an approximate breakdown of the questions discussed during the interview for your convenience:
0:00 – 0:50: Introduction
0:51 – 2:28: A survey of CFA Institute members in Europe from October 2013 shows that insufficient information and illiquid markets are the largest barrier to investing in Africa by the highest proportion of respondents (29%).
2:29 – 3:30: For an institutional investor, what is the cost of a round trip to investing in Africa?
3:31 – 5:00: Insufficient regulatory and legal protection was selected as the largest barrier to investing in Africa by 23% of the respondents. How would you comment on that?
5:01 – 5:50: Corruption was selected as the largest barrier to investing in Africa by 21% of the respondents. What is your take on corruption in Africa?
5:51 – 6:55: A poor perception due to political risk was selected as the largest barrier to investing in Africa by 15% of the respondents. How would you comment on that?
6:56 – 8:21: A poor perception due to past humanitarian crisis was selected as the largest barrier to investing in Africa by only 1% of the respondents. Has the perception of Africa changed?
8:22 – 9:40: How would you summarize your views on barriers to investing in Africa?
Readers may also be interested in a recap from European Investment Conference, “Fear of Investing in Africa Is Losing You Money.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.