African frontier markets entered 2025 with strong momentum, led by Tanzania and Kenya, while Nigeria, Rwanda, Senegal, and Ghana offer more selective opportunities.
• The fund discussed returned an estimated 26%–27% in U.S. dollar terms in 2024.
• Main country exposure: Tanzania about 35%, Kenya about 30%, Nigeria just over 7%, Rwanda around 6.5%, and Senegal around 6%.
• Tanzania’s outlook is supported by tourism, agriculture, minerals, record coffee and gold prices, a strong cashew season, and low oil prices. Key holdings include Tanzania Breweries and Tanzania Cigarette.
• Kenya has improved from a weak 2023. Inflation is just over 3%, bond yields are below 10%, and the shilling strengthened sharply after the Eurobond rollover.
• Nigeria is riskier but investable again because money can now be repatriated. The naira fell heavily, inflation is in the low 30% range, and stock selection is critical.
• Rwanda exposure is through a Heineken subsidiary with beer, soft drinks, and around a 10% dividend yield.
• Senegal and Ghana exposure focuses on telecoms and mobile money, especially Sonatel and MTN Ghana.
Takeaway: African equities offer strong frontier-market upside, but the best approach is selective exposure to dominant companies with dividends, low valuations, improving earnings, and manageable country risk.
