Frontier Markets – A Rising Reality
Frontier Markets’ economy has steadily evolved over the last few years, being now at a stage where Emerging Markets were almost 15 years ago. This growth has been supported not only by improved economic and political conditions, but also by the expansion of a rising middle class , demonstrating its sustainability going forwards.
As a consequence of this economic and social development, the interest of institutional and foreign investors in Frontier Markets has increased over the last decade. However, despite this positive trend, Frontier Market are still on a totally different scale – both at macro and micro level – when compared to Developed, but especially to Emerging Markets, to which they are too often wrongly associated. This suggests that Frontier Markets have to be considered as a new and distinct asset class from Emerging and Developed Markets, and that adequate professionals with a deep knowledge of them are needed when it comes to design the right investment approach.
