Market Strategy Update: Favouring East African Local Debt

As we move into 2012, our asset class strategy for Sub-Saharan Africa remains broadly unchanged from December 2011. We see East African local debt as offering the most compelling investment opportunity at present owing to the high nominal yields, relative currency stability and likelihood of disinflation. We also see promise in East African equities, although the opportune time to invest may not come for several months. In the eurobond sphere, we continue to favour Côte d'Ivoire US$2032, and furthermore highlight Gabon US$2017 as being underpriced at present.

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