Washington, DC — Africa in 2003 was home to the worlds best performing stock market. The Ghana Bourse, with a U.S. dollar return of 144%, outpaced 61 markets around the world surveyed by Databank Financial Services, Ltd.
Uganda, Kenya, Egypt, Nigeria and Mauritius were other strong performers in Africa with returns in U.S. dollar terms exceeding 50% in 2003. According to Databank, average returns on African stocks last year reached 44%. This compares favorably with a 30% return by the MSCI global index; 32% in Europe; 26% in the U.S. (S&P); and 36% in Japan (Nikkei).
The Corporate Council on Africa (CCA) hailed these findings. According to CCA President Stephen Hayes, the performance of African markets is "another reason why investors should seriously consider Africas emerging markets as places ripe for investment."
Over the two-year period 2002-2003, the Ghana Bourse led the world with a compounded index return in U.S. dollar terms of 256%. Impressive corporate results, cheap valuations and an improving macroeconomic environment drove Ghanas bull market. In 2003, Standard and Poors upgraded Ghanas sovereign credit rating to B+.
Databank also found that Kenyan stocks attracted new attention because of the countrys successful political transition, commitment to macroeconomic reforms, government steps to tackle corruption and the resumption of foreign aid. Bullish crude oil prices, exchange and interest rate stability and cheap valuations also lifted Nigerian stocks.
The vibrancy of Africas stock markets will be highlighted in New York on February 26, when CCA convenes its Increasing Capital Flows to Africa Conference.
CCA, established in 1993 and based in Washington, D.C., is a nonpartisan 501 (c) (3) membership organization of more than 190 U.S. companies dedicated to strengthening the commercial relationship between the U.S. and Africa. CCA members represent nearly 85 percent of total U.S. private sector investments in Africa. CCA's website is www.africacncl.org.
