African nations in pains over oil price crash and US dollar spike
The credit boom in sub-Saharan Africa in recent years has been cause for almost as much consternation as celebration. While the emergence of Africa in capital markets is hailed as a significant development, the continent’s growing exposure to the global market has left it increasingly vulnerable to precisely the sort of shocks that are upsetting investors’ balance this year. Across emerging markets, prices for assets are falling as investors consider not just the impact of a possible US interest rate rise but the particular attributes of the countries themselves, against a backdrop of low growth in developed markets and falling commodity prices. The prevailing mood, according to Kamakshya Trivedi, analyst at Goldman Sachs, is caution. Yet the size of Africa and the variety of countries it holds mean that quick judgments should be avoided, says Yvonne Ike, head of sub-Saharan Africa coverage at Bank of America Merrill Lynch. While the effect of globalisation has left Africa ...