Emerging market equities are on a rally. They, however, remain cheap from a relative pricing perspective in comparison to their historic means. At current valuations it seems that the entire market is attractive. A line of thinking that has erased wealth than most others. A long-winded way of saying:
It's a great time to buy the right stocks.
Our hashtag
#CapitalMarkets progress report is here! As one of the key highlights of our two-day hashtag
#SustainableCapitalMarketsConference, we unveiled our latest progress report, highlighting milestones achieved through our catalytic work in hashtag
#Africa’s capital markets.
Some of our key achievements include:
💰 Catalysing $1.2 billion in sustainable local currency capital
💼 Launching the Dhamana Guarantee Company for credit enhancement
🚰 Issuing hashtag
#Tanzania’s first water bond to fund critical infrastructure
🤝 Establishing the Pan-African Fund Managers Association (PAFMA) and Africa Pension Supervisors Association (APSA) to strengthen market collaboration
Why capital markets matter:
Capital markets are a powerhouse for hashtag
#EconomicGrowth, unlocking access to essential finance for both the public and private sectors to address hashtag
#biodiversity loss, and more. By fostering local currency capital markets, we can reduce currency risks and build a resilient financial ecosystem that’s equipped to withstand external shocks.
The report's key themes include financing solutions for hashtag
#ClimateAction, and biodiversity; bridging Africa’s financing gap by mobilising private domestic capital and deepening local capital markets to meet critical funding needs; and empowering Africa’s financial markets with tools and resources for large-scale impact.
Angola stock market is officially open!! Yesterday, ENSA (Angola's largest insurer) in an oversubscribed listing, issued 30% of its shares to the public, now joining other local big names like BAI and Caixa Geral. And despite high inflationary pressures, IPO and M&A activity has picked up significantly mainly off the back of the Government's ambitious national privatization program. But, as strong gains tend to stretch valuations relative to fundamentals like impact of interest rates, the cost of financing, and earnings. How far are investors willing to chase performance?
There is now an ever growing sense of hype around the "who's next in line" IPO. And no wonder!! Emerging markets IPOs tend to outperform their developed markets counterparts. Take the US vs Europe, Middle-East, India and Africa (EMEIA) region for example:
• While the US has been experiencing a prolonged state of low growth of its IPO markets (both on proceeds and performance), with recurrent themes of "companies staying private for longer",
• Emerging and developing markets, on the other hand, are on the rise. Just last year alone, has outperformed its counterpart by a long shot - first day average return and offer-to-current price, both registering 10.1% (USA 9.7%), and 101.9% (USA 1.4%) respectively.
Despite this, in the long-run there are both liquidity and negative loading to value issues to consider:
• Stocks in emerging markets can suffer from lower liquidity, meaning that large price swings are possible with relatively small trades. This can lead to higher volatility and larger bid-ask spreads compared to similar companies in developed markets;
• Research shows that IPO investments tend to behave like high beta stocks with negative loading to the value factor (in other words, they behave more like a small growth, low profitability investment).
That being said, I remind our investors that it's not the arithmetic returns on an investment that matter, but rather the geometric average returns, because returns compound over time. More volatile assets tend to have a bigger gap between arithmetic and geometric returns... but more on this later on another post.
So finding an already existing well diversified mutual fund or ETF to get in on the action of initial IPO allotments, avoid single asset beta and post fade reactions, is the rule of the game here. While an individual stock investment will deliver a random outcome essentially driven by the specific risk of the company, a more balanced and diversified portfolio should allow the investor to counter the impact of post IPO volatility.
Going back to basics in portfolio theory, the risk of an investment portfolio is defined not by the average of its underlying assets, but by how they move in tandem - i.e. their correlation. In the words of the great Markowitz, diversification is the only free lunch in investing!!
Hi family,
I am super interested in these areas to collaboratively working with you guys. Who are also interested in?!
Mayaya Kashinje Singu Mack – a social entrepreneur, researcher and consultant; specialized and experienced in social enterprises and social entrepreneurship development, project planning and management, organizational and community development, forest and landscape restoration, beekeeping; and regenerative agriculture.
Mayaya is thrilled to attain sustainable community development -UNSDGs2030 and AU2063 with vast field and lived experiences in NGO sector for 10+ years; working as social enterprise researcher and consultant, forest-beekeeping extension and consulting, community-based project developer; NGO leadership and management trainer, permaculture trainer - food forest systems designer and consultant; founded and coordinating several local and international organizations and programmes across the African continent and globally.
He is a National Focal Point (NFP) at GNDR Tanzania; an ED & founder of Sustainable Beekeeping and Human Development (SuBeHuDe); Co-founder & Program Coordinator at The New Wash Burn Foundation (NWBF); a mentor at Shinyanga Ecovillage Transition Youth Initiative (SET-Youth–I), and President & Managing Director at Sustainable Beekeeping for Development Company (SBDC) - a social enterprise for bees products, beekeeping value chain development and product innovation focusing on pure natural honey bee honey and beeswax processing, packaging and supplies across Tanzania and beyond.
He believe in the power of network and social movements to change the world. He is passionate about building networks who can drive the transition from not-work to network that effective engagement and interaction to address three dimensions of sustainability - Social, Economic and Environmental Development (SEED) aiming to create socially, economically and environmentally sustainable activities that allows both land and people to flourish while create a healthy and prosperous future for everyone.
Mayaya Kashinje Singu Mack – a social entrepreneur, researcher and consultant; specialized and experienced in social enterprises and social entrepreneurship development, project planning and management, organizational and community development, forest and landscape restoration, beekeeping; and regenerative agriculture.
Mayaya is thrilled to attain sustainable community development -UNSDGs2030 and AU2063 with vast field and lived experiences in NGO sector for 10+ years; working as social enterprise researcher and consultant, forest-beekeeping extension and consulting, community-based project developer; NGO leadership and management trainer, permaculture trainer - food forest systems designer and consultant; founded and coordinating several local and international organizations and programmes across the African continent and globally.
He is a National Focal Point (NFP) at GNDR Tanzania; an ED & founder of Sustainable Beekeeping and Human Development (SuBeHuDe); Co-founder & Program Coordinator at The New Wash Burn Foundation (NWBF); a mentor at Shinyanga Ecovillage Transition Youth Initiative (SET-Youth–I), and President & Managing Director at Sustainable Beekeeping for Development Company (SBDC) - a social enterprise for bees products, beekeeping value chain development and product innovation focusing on pure natural honey bee honey and beeswax processing, packaging and supplies across Tanzania and beyond.
He believe in the power of network and social movements to change the world. He is passionate about building networks who can drive the transition from not-work to network that effective engagement and interaction to address three dimensions of sustainability - Social, Economic and Environmental Development (SEED) aiming to create socially, economically and environmentally sustainable activities that allows both land and people to flourish while create a healthy and prosperous future for everyone.
I am the founder of ujuuziHUB, an innovative platform that connects skilled professionals with clients needing a variety of on-demand services across Kenya. With a mission to increase accessibility and convenience for home and business services, ujuuziHUB is designed to empower local professionals by providing them with new opportunities while delivering high-quality services to customers. My background in tech-driven solutions and a deep commitment to creating employment through accessible service networks drive my work with ujuuziHUB and align well with JamiiTrade's focus on impactful trade and service solutions.
Grace Moreka is the Founder and CEO of AMORE Business Systems and Ventures Ltd, an African garment manufacturing company, She brings a decades of experience in customer service, hospitality, strong business acumen, and expertise in project management. She holds an MBA in Finance, which has equipped her with the skills to drive financial growth, optimize operations, and implement strategic initiatives within her business. Passionate about the fashion and manufacturing industry, she is committed to delivering high-quality products while building strong relationships with clients and partners. She excel at leading teams, managing complex projects, and ensuring efficient, customer-focused operations. Her leadership style emphasizes innovation, collaboration, and excellence, driving the success and growth of the business in a competitive market.