Aly-Khan Satchu

MSCI Frontier Markets Index Leaves Emerging Markets In the Dust

Its a perfect storm for Frontier markets and especially SSA Equities. As an asset class, Folk tend see the markets through a Bob Geldof Live Aid prism and this lack of perception means there is enormous value. The African continent is growing at its fastest rate since most Countries got their Independence. In Kenya, the State replayed Thatcherism. They started selling shares in what were previously mismanaged and bloated Government Parastatals, for example. These companies became profitable and Investors have reaped a very handsome reward. The State has a win win, instead of writing subsidy cheques, The Exchequer is receiving dividend cheques. The swing effect is material. Investors have found a taste for the Stock Market. Domestic demand did not exist before. In Kenya, we are launching our biggest IPO [Safaricom Mobile phone company] in our history. A million new shareholders are likely to enter the market. These are not small things. These markets are in a sweet spot.

Aly-Khan Satchu
rich.co.ke