Africa's growing middle class a sign of investment opportunities: expert

An international business executive has described the growing middle class in Africa as a clear sign of a ripened investment environment.

Guatam Duggal, Head of Wealth-Africa, Asia and Europe at Standard Chartered Bank (Stanchart), said increasingly, Africa was putting itself forward as the place for investment.

In an interview with Ghanaian media here late Tuesday, Duggal, who has been on a working visit to Ghana, said with a growing middle class, there was enormous wealth coming onto the continent.

Africa is projected to have the largest number of middle class by 2050, and the investment expert says that means there is the need for increased financial inclusion on the continent.

He listed life insurance products, investments in health and sustainable financial and investment instruments as some of those areas Africa's young middle class should be investing in for future security.

"In 2013, Ghana had the fastest increase in the highest net worth individuals after Angola," he observed, adding that this meant a growing level of investible resources that needed tapping.

According to him, the reality of the growing middle class brings along the need to find the right solutions to the investment needs for these resources, which is the core business of the Stanchart wealth division.

The English bank has been collaborating with insurance companies to introduce investment products to their retail and corporate clients over the last decade.

Duggal said, like any other investment product experiences, their clients were initially skeptical but gradually got involved, seeing the benefits that came with the investments, rather than keeping their money in savings accounts and in short term instruments such as Treasury Bills.

Setor Quashigah, Head of Wealth at Stanchart-Ghana, said the country's economy was set to recover from previous shocks this year, hence the need for individuals to invest in sustainable and high yielding wealth instruments.

"The Ghana cedi has been largely stable over the past three months and we see the cedi regaining its strength against all the foreign currencies as our government also adheres to provisions in the International Monetary Fund (IMF) program," she added.

In spite of the fears of the election year economic challenges, Quashigah was optimistic that Ghana would pull through the 2016 election year as a stronger nation.

She urged people to remain calm and go about their businesses as usual while keeping their money with the banking sector where it is safest. Endit