Ghana leads FMCG investments in Africa
By: Masahudu Ankiilu Kunateh
UBS AG, a financial services company with offices in more than 50 countries, has ranked Ghana among Nigeria, Zambia, Kenya and Tanzania, as the leading countries for Fast-Moving Consumer Goods (FMCG) investments in Sub-Saharan Africa.
This means that these countries are identified as the most preferred destinations for FMCG investments on the African continent, according to a new UBS AG report.
The report added that Sub-Saharan Africa boasts of some of the strongest economic growth in the world, and offers selective opportunities for consumer goods.
Analyst Renier Swanepoel said the rankings were based on economic growth prospects, the size and future opportunity of available FMCG markets, and the overall ease of doing business. South Africa stood at the 18th position, because South African companies are looking outward to the North for better growth opportunities.
Mr. Swanepoel noted that SABMiller, one of the world’s leading brands, could win in sub-Saharan Africa, saying that its earnings valuation from the same store operations forward price suggest good progress.
He explained that the valuations of retailers Shoprite and Massmart suggests that the market has priced in more than the available growth.
UBS AG is headquartered in Zurich, Switzerland, with its American investment banking operation headquartered in New York. The financial giant is the second largest European bank, and was formed in 1998 by the merger of United Bank of Switzerland and the Swiss Bank Corporation.
Issues of interest to UBS AG include all aspects of financial and trade policy. The firm — as is the case with the greater securities and investment industry — has tended to give slightly more campaign money to Republicans during the last decade, although it also tends to give more to the political party in power.
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