From iOL

High stakes for high return, if you can stick it out for the long term – investors are buying into a boom in sub-Saharan African real estate.

Forecasts for 20 percent net annual returns from investing in shopping malls, office blocks or industrial complexes in countries from Zambia to Kenya is drawing in new investors, despite more immediate concerns in some countries about Ebola, terrorism or political stability.

Investors have already taken a liking to sub-Saharan African dollar debt, encouraging a record $10 billion (R107 billion) in sovereign and corporate issuance last year and $5 billion so far this year, according to Thomson Reuters data.

But when even bonds from Kenya and Senegal offer yields of only five or six percent, enthusiastic risk-takers may choose to invest on the ground in Africa.

Momentum Global Investment Management is launching a $250 million sub-Saharan real estate fund later this year, focusing initially on shopping malls and office buildings in countries such as Mozambique and Rwanda.

Read more at iOL