Africa's Oversold Growth Story Has Investors Confronting Losses
- Nigeria, South Africa Slump as Ethiopia, Congo Lure Investment
- Problems pale beside opportunities, says Templeton's Mobius
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Just a year ago, Africa was touted as the next investment El Dorado. Two decades of record growth, a rapidly urbanizing population of 1.1 billion, rising incomes and vast untapped mineral reserves would lead to the creation of a broad middle class, the theory went.
General Electric Co. and Marriott International Inc. announced African expansion plans, while buyout firms Carlyle Group LP and Helios Investment Partners set up funds targeting the continent. The region attracted $128 billion in foreign direct investment last year, up from $52.6 billion in 2013, according to accounting firm EY.