Where to invest in SSA amid the coronavirus crisis

As the global economy continues to grapple with the effects of the ongoing pandemic, investors are looking for signals of where to allocate their capital for the best returns. In a recent interview on CNBC Africa, economist William shared some insights on the investment landscape in sub-Saharan Africa (SSA) amidst the coronavirus crisis. He highlighted significant revisions to growth forecasts for key economies in the region, such as South Africa, Zimbabwe, Angola, Zambia, and Nigeria, all expected to experience contractions. Countries like Ethiopia and Kenya, which had previously been viewed as investor favorites due to business-friendly policies and robust sectors like telecoms and technology, are also projected to see slower growth rates this year. The coronavirus pandemic has undoubtedly reshaped the investment outlook for the region, with expectations of reduced investment levels and slower economic growth. Despite the challenging environment, William emphasized that there are still pockets of opportunity for investors in SSA. He pointed to East Africa and francophone West Africa as regions where growth, though slower, still presents attractive opportunities for companies and investors. Industries such as technology, cloud computing, and essential goods and services have shown resilience during the crisis, offering investment prospects for those willing to navigate the changing landscape. Additionally, the oil market volatility, which heavily impacts oil-dependent economies like Nigeria and Angola, has seen some stability following production cuts by OPEC. While prices are expected to stabilize in the second half of the year, the overall demand for oil remains significantly lower due to reduced travel and transportation activities globally. This poses ongoing risks for economies reliant on oil exports for foreign exchange reserves in SSA. Despite the challenges posed by the pandemic and its economic repercussions, William remains cautiously optimistic about investment opportunities in the region. He acknowledges the need for thorough research and a nuanced approach to identify viable investment prospects amidst the uncertainty. While the investment landscape may have shifted, the resilience and potential of certain sectors and regions offer hope for those seeking returns in SSA amidst the pandemic.