After a very complicated year for global investors,the time has finally come to start focusing on what’s next. Needless to say, it’s still unclear how the world is going to be reshaped by this year’s events (last but not least, the Biden presidency), that is why we prefer to rely on what we can see right now.
Frontier Markets have clearly shown a greater resilience facing the Covid-19 pandemic when compared to their “big brothers”. Numbers are strong in terms of growth and production, making them the world’s fastest growing economies for the foreseeable future. Moreover, they have demonstrated a higher than expected stability, proving their improvement from an institutional point of view.The current low or negative interest rate regime in Developed Markets will force investors to look elsewhere for long-term returns. The investment case for Frontier Markets is really compelling, they are not only much more resilient, but also offer attractive valuations, exceptional growth rates and an improving stability.
We believe now is the time for Frontier Markets to receive greater attention from those investors capable of recognising the unique opportunity they are offering in this particular historical moment.