Despite a lower performance in recent months, the appetite for Africa’s fixed income market does not seem to loose ground. It is in fact recent news that South African asset manager Momentum has launched an Africa Fixed Income Fund “for institutional investors looking to benefit from opportunities in Africa.” It will focus on developments in Ethiopia, the Democratic Republic of Congo, Ghana, Kenya and Nigeria, and it is going to be both in local and hard currency bonds, exploiting both local and Eurobond opportunities. A new approach that can be extremely rewarding but hides several warning elements as well such as currency devaluation, hyperinflation, illiquidity and political instability. Definetely an interesting fund to follow to understand market development and potential.
A new fixed income fund for African sovereign bonds