Rwanda has been cited as one of the emerging economies to look out for in 2019, at the ongoing One on One Conference by EFG Hermes, a leading financial services corporation in Frontier Emerging Markets (FEM).
The summit, which is underway in Dubai, United Arab Emirates, convenes executives from over 180 African companies representing 26 countries who are meeting more than 500 investors representing 260 institutions and family offices, managing an aggregate USD 11 trillion in assets under management.
Rwandan firms present at the summit include BK Group PLC, Mota Engil and DP World. At the summit, the firms stand an opportunity to attract affordable capital.
Ali Khalpey, Chief Executive Officer of EFG Hermes Frontier, said that opportunities are arising in countries such as Rwanda, which are expected to be among the top 10 markets for growth in 2019 thanks to innovative power generation and infrastructure projects.
“Year on year, we are witnessing increased participation of African companies in our flagship conferences…Investors are seeking opportunities that are expected to arise in key African markets…At the same time, opportunities are arising in countries such as Ethiopia and Rwanda, which are expected to be among the top 10 markets for growth in 2019 thanks to innovative power generation and infrastructure projects. Kenya is making the reforms necessary to boost growth while Ethiopia has appointed a commission to explore opening up a stock exchange and all the needed regulatory frameworks and structures,” Khalpey said.
Since entering Sub-Saharan markets, the summit has played a role of bridging the gap between global capital and local opportunities.
“This event is an unmatched direct access platform for global investors and companies representing some of the world’s most compelling markets. Even in the face of macroeconomic challenges such as significant capital outflows from emerging markets and rising US interest rates, frontier emerging markets represent the greatest potential for driving growth and generating accretive returns. With thousands of direct meetings taking place between investors and presenting companies, we hope to provide attendees with insights on how to navigate these rougher global waters to unlock new value,” Kato Mukuru EFG Hermes’ Head of Frontier Research said.
Experts at the summit say that the overall outlook for frontier markets in 2019 is mixed, with macro-level factors such as the moderation of China’s commodities demand, the weakening of the yuan, ongoing tensions between China and the US, and the US Federal Reserve’s current fiscal tightening cycle creating significant challenges across regions.