As investors and investment consultants, we pursue a medium to long-term investment approach. From a greater perspective, we are focused more on real, (or hard) assets than on financial assets.
We favor economic sectors and business models that should show robust development, even if the global economic development (recession or even depression) and the financial situation of the Western economies get drastically worse.
This investment approach allows us to offer financial investors an effective diversification of their portfolios in local related growth markets and alternative asset classes (agriculture, land investments, renewable energies, real estate in emerging and frontier markets).
As the dangerous escalation of the financial crisis can be seen in the structural sovereign debt and banking crises of the developed nations, sub-Saharan countries should be less affected than most other regions of the world.
We are deeply convinced that well selected investments in Africa will carry considerably less risk than many of the so-called safe havens in the Western world (i.e. treasury bonds) that are still considered ‘safe’ by most market participants. From this perspective, investments in Africa represent an interesting hedging strategy for institutional and private investors.