The Prepaid Economy: African Edition

Nigeria and Kenya have been tipped as Africa investment destination hotspots in the coming years.

According to a research finding by the Economist Intelligence survey, global institutional investors plan to boost their asset allocation in African markets over the next five years, and are shifting to long-term investment strategies from more speculative, short-term bets.

By 2016, however, all the institutional investors polled expect to have some exposure to emerging Africa, with nearly one-third expecting to shift at least five per cent of their fund value there.

In terms of popularity with investors, Nigeria and Kenya top the list, followed by Zimbabwe, Egypt, Ghana and Libya.

Investors eye Africa’s emerging middle class as the most attractive aspect of the continent, which until now has been a largely natural resources play.