Investors looking to tap African economic growth are increasingly looking beyond the continent's established markets South Africa, Nigeria and Kenya to a new generation of economies such as Ghana, Zambia and Tanzania. According to the Bank of America, foreign direct investment to Africa doubled between 2000 and 2006 to $315 billion. While African trouble spots from Somalia to Sudan remain out of bounds to all but the hardiest investor, the arguably less newsworthy – and therefore often more stable – smaller countries are seen turning a corner and attracting growing interest despite relatively illiquid and immature markets. “You have these second-tier economies coming into their own,” said Razia Khan, chief Africa economist at Standard Chartered in London. With economic growth of six to seven percent seen largely immune to a Western downturn there is cross-asset interest from bonds to equities to direct investment in infrastructure.
