In the reverse of the panic sell-ff that hit Africa's stock markets last year,this year Africa has attracted almost $1 Billion of net fund inflows. 'If the current trends hold,the $1 Billion mark should be crossed this week' Cameron Brandt,Washington-based EP-FR's global markets analyst said. The flows are further evidence of the return among some global investors of an appetite for the higher risks and higher yields of developing markets like the NSE after after a flight to safety in cash and govt debt towards the end 0f 2008.

African countries are expected to post some of the strongest growth in the world this year e.g. our neighbour Uganda is expected to grow at more than 6%.

Foreign investors accounted for 50.4% of the Nairobi Stock Exchanges total turnover in the first half of this year even as the global financial crisis ravaged world economies. This is strengthening over time as the worst of the downturn or recession is behind us.

As the NSE market environment experiences tougher regulation I think it is time any local investor who was thinking of investing or divesting in equities takes a good look at the incoming half-year results and makes decisive picks/sells ahead of anticipated recovery in select sectors of the Kenyan economy to be in an advantageous position going forward following improved and ever increasing foreign net inflows.

My 2 Cents.

What are you investing in this mid-year?

Welcome but peanuts... Kenya's energy sector could use up all of the $1bn in 5 years... If you add the other countries' energy needs... what do you have?

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

My take is that most probably 70% of that money is going into the JSE in SA and around 25% into Nigeria,Morocco and Egypt.
If foreigners were significant in the nse,we would be doing turnovers of 2 billion shillings a day . Market activity has all but collapsed and thats because local fund managers are in bonds. Dont read too much into the 50% foreign participation.

money by the day

As we theorise,look at the rise if the SCOM share from the March '09 lows and you'll realise the significance.

For the general African picture with mention to the NSE,you can read the Reuters article here: http://af.reuters.com/ar...p;virtualBrandChannel=0