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Markets & economy

Volatility in African securities: Evaluating risk and understanding the opportunities

In the first of a four-part webinar series, brought to you by the African Development Bank (AfDB) and Allan Gray, Dr Bartholomew Armah, of the UN Economic Commission for Africa, and Tapologo Motshubi, head of Allan Gray’s businesses outside of South Africa, discuss past and current crises and how they have affected African capital markets. This event was moderated by David Ashiagbor from the AfDB.

After illustrating the short-term fiscal and monetary responses to the pandemic, Bartholomew looked to the future to highlight the available policy options. Of note were initiatives that could leverage the strength of G20 economies, the Organisation for Economic Co-operation and Development (OECD) and other multilateral institutions to generate sustainable and scalable options to address Africa’s economic growth, solvency and liquidity constraints. 

As a contrarian investor who believes that volatility does not equate to risk, Tapologo demonstrates how to adopt a patient and independent mindset. By looking at Allan Gray’s Africa Equity and Africa ex-SA Bond funds, he illustrates that the perceived risks associated with African securities have generated meaningful opportunities, leading to pleasing absolute and relative returns. Watch the 72-minute recording below and here are the presentation slides:

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