A new report from UBS AG says that Sub-Saharan Africa boasts of some of the strongest economic growth in the world and offers selective opportunities for consumer goods
Analyst Renier Swanepoel stated that Nigeria, Ghana, Zambia, Kenya and Tanzania were identified as the most preferred destinations for Fast Moving Consumer Goods (FMCG) Investments.
Mr. Swanepoel’s rankings were based on economic growth prospects, the size and future opportunity of available FMCG markets and the overall ease of doing business. South Africa stood at the 18th position because South African companies are looking outward to the North for better growth opportunities.
He noted that SABMiller, one of the world’s leading brand in the world, could win in sub-Saharan Africa saying that its 18x earnings valuation from the same store operations forward price suggest good progress.
He said that the valuations of retailers-Shoprite and Massmart suggests that the market has priced in more than the available growth.