Bankers gathered in Shanghai in May of for the annual meeting of the African Development Bank. Confidence was high given that the past four years of above trend economic growth has triggered a strong interest from London based equity and fund managers.
Convinced that the continents dominant economies are turning a corner funds listed on AIM, mutual funds, private equity and hedge funds are pouring in to Africa.
To put things into perspective, the U.K. & America are falling behind the competition when it comes to investing in the continent. China, India, Russia and much of the Islamic world are already there. In July 2006, for example, Beijing used $US5 billion from its reserves to form the Africa Development Fund to develop the continent's oil and mineral resources.
Looking at the current turmoil in the markets, one wonders if China isn't on to something when it comes to weighing up the relative risk of politically unstable Africa versus intangible, complex financial securities and derivatives.
Chinese, Indian & Russian demand for natural resources has helped fuel a boom in commodities which Africa has in large supply & the promise of a massive programme of investment in infrastructure. Africa's fringe position in the global economy is contributing to it's appeal. The correlation between African equity markets & other regions is low, offering opportunities to reduce portfolio risks at a time of global volatility profits generated by commodities are causing sustainable growth in Africa.
Africa becomes the No1 investment destination for the 21st century
Private equity is attracting international investors to Africa like never before, with fund after fund being launched in London to look beyond South Africa.
"We don't have to invest in Africa, and we wouldn't have invested in certain African local-currency markets without an improvement in policies over the past few years," said William Ledward, who manages a billion emerging-market fixed-income fund for Franklin Templeton Investments.
Nkosana Moyo, who is partner for Africa at Actis, a British private equity firm that invests in emerging markets, said he plans to raise a new 10 million fund for Africa in the next year.
Moyo said Actis, as an investor with a 10-year horizon, was excited by Africa's opportunities because the continent's new generation of leaders was more at ease with open global markets; the continent, moreover, was home to 20 percent of the world's proven reserves of oil and gas.
Wall of Money Hits Africa
Arnold Ekpe, chief executive of the Ecobank Group, said that the wall of money coming into Africa reflected both genuine reforms and a global hunt for higher yields.
"Frankly, some of the numbers we're looking at, I haven't seen that in 30 years of banking in Africa," Ekpe said.
Alex Garrard, a UBS managing director responsible for the bank's proprietary and customer trading in exotic fixed-income securities, said he had witnessed a sea change in the last 6 to 9 months in the willingness to invest for the long term in Africa.
Stuart Culverhouse, chief economist at Exotix, said foreign direct investment accounted for virtually all the billion in private capital flows into sub-Saharan Africa, excluding South Africa, in 2005.
Investments in Africa afford low entry levels allowing average investors to take advantage of great returns in a relatively short period of time. Africa, as a whole, is the last undervalued marketplace. These markets, with the exception of South Africa, now sell at bargain basement prices.
Jet to Buy and Jet to Build Investors Are Quick To Move
Ivor Bartell of Gambian property consultancy Gambia Property Sales, said ' The Gambia is a 6 hour flight from London and has blossomed into a world class tourist resort over the last decade with five star hotels, fine dining, fantastic beaches, water sports, sports fishing and many other quality sporting and leisure pursuits.
The Gambia is peaceful and stable. Crime rates and the cost of living are among the lowest in the world. Property ownership is part of the Gambian constitution and the conveyancing system is transparent and straightforward when done professionally and The Gambian government is totally committed to free enterprise.'
We are now getting serious enquiries from European, Middle Eastern and American property developers. Building land is readily available and prices are still very reasonable. Construction costs are a fraction of those in Europe and opportunities exist for commercial, residential, and tourist developments'.
African Property Investment Overview
* Knight Frank has just launched its East Africa property fund having recently reported an increase in real estate value and growth in the region.
* In August a £650 Million Pan African fund was launched by Pamodzi Investment Holdings
* Since January 2007 there has been more than £1 Billion raised in London by private equity funds for Africa
* Since June 2007 3 African funds have raised £200 Million & listed on boyh AIM & LSE
* Two years ago there was just 2 African funds on the London markets, today there are more than a dozen
* 7 out the the worlds 20 fastest growing world economies are in Africa
* 6 out of the top 10 performing economies in Africa are in West Africa
* Africa's overall GDP growth has exceeded global growth
* Top Six Fasting Growing Economies in West Africa
* Liberia 13.3%
* Equatorial Guinea 7.1%
* Gambia 7.0%
* Burkino Faso 6.5%
* Sierra Leone 6.5%
* Cape Verde 6.5%
* Sourse IMF
Relax Sahel Beach Front Residence
Key Facts
* Spectacular beachfront positioning
* All homes with 10-20 meters of sea view
* Adjacent to Exclusive 5-star Coco Ocean Resort
* Adjacent to 137 acres of the pristine Bijilo Rain Forest Nature Reserve
* Private pools, roof terraces and gardens available
* Exclusive Relax Country Club to the rear of development
* Close to Senegambia restaurants, stylish bars and a range of shopping
* Excellent investment opportunity
Quality Build
Only High quality finishing materials throughout:
3.5m Ceilings
Italian Porcelain Floor Tiles
European Profile Aluminum Doors and Windows
Insulated Walls and Roofs(R32)
Invest in The Gambia and Relax Sahel Beach Front Residence
The Gambia has remained an unexplored secret to tourists and international property investors alike, until recently.
The capacity for tourism expansion, a stable and welcoming investment environment and the potential for very profitable rental yields
and rewarding capital growth are just a handful of reasons to invest.
Relax Sahel Beach Front Residence offers investors the enviable opportunity to purchase top-quality property in a prime location now, while prices remain low.
* 6 month holiday season leads to exceptionally high occupancy rates
* Potentially very high yields
* Direct 6 hour flights from many UK and European airports
* Strong and growing economy
* Stable and welcoming investment environment
* Huge tourism growth potential
* Large investment - both public and private, national and international
* Lucrative capital growth potential
* High level of investment in infrastructure and property development
* Property ownership is based on the British legal system
* Crime rates and the cost of living are among the lowest in the world
Quality of Design
Quality of Life
gambiapropertysales@gmail.com
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