JOHANNESBURG, April 10 – Global conflicts in the Middle East and Eastern Europe are reshaping investor perceptions, with Africa increasingly viewed as more resilient than previously assumed, according to TLG Capital.
Chief Executive Officer Zain Latif said shifting geopolitical dynamics have exposed the relative stability of African markets, prompting investors to reconsider long-held risk assumptions about the continent.
African economies have historically carried what Africa Finance Corporation describes as a “prejudice premium,” with countries often paying higher borrowing costs than peers with similar credit ratings. Research by the International Monetary Fund has shown that sub-Saharan African nations typically face higher interest rates, particularly during periods of global stress.
However, recent performance data suggests a changing narrative. African local-currency government bonds have delivered significantly stronger returns compared to broader emerging market peers over the past year, while sovereign bond indices have also outperformed in recent weeks.
The shift in sentiment is further reflected in renewed investor appetite for African debt, highlighted by Democratic Republic of Congo’s successful debut Eurobond issuance, which drew strong demand from global investors.
TLG Capital, which has invested across markets including Guinea, Djibouti, Tanzania and Zambia, sees particular opportunities in large and fast-growing economies such as Nigeria and Uganda.
Despite the improving outlook, risks remain. Many African economies continue to face pressure from higher fuel and fertiliser costs driven by global supply disruptions, while currency depreciation has increased the burden of external debt servicing.
Security challenges also persist, including conflict in Sudan and rising militant activity across parts of West Africa.
Even so, equity markets in parts of the continent have shown strong momentum, with stocks in Ghana and Nigeria posting some of the highest returns globally this year.
The evolving narrative suggests that while structural risks remain, Africa is increasingly being viewed through the lens of opportunity, diversification and long-term growth potential in a shifting global investment landscape.
