Investment in African funds 'back on track'
African emerging and frontier equity funds experienced an increase in net inflows last week, one fund tracker has revealed.Reuters reports Washington-based EPFR Global stated funds across the continent returned to strength in the seven days to July 23rd, after 44 consecutive weeks of positive performance came to an end in the previous week. Figures from EPFR Global showed net inflows in excess of $480 million (€371.9 million) were recorded by African Regional Funds during the opening six months of 2010.
However, many foreign investors are focusing primarily on Nigeria and Kenya, as countries such as Uganda, Zambia and Ghana are suffering from a lack of liquidity. "Africa Regional Funds resumed their winning ways, attracting fresh money for the 45th time in 46 weeks," the news agency quoted the firm as saying.
EPFR noted bonds have also performed well in July and, earlier in the month, Reuters reported the Central Bank of Kenya intends to reopen a 25-year Treasury bond, which attracted more interest than expected when it was first launched in June.