Geographic Focus

Africa, the world’s 2nd largest continent, presents significant growth opportunities – as illustrated by the IMF’s 2010 growth forecast map below. Asia is the only other region that presents similar growth potential – but Asia has already gained significant investor attention whereas the African opportunity is less well understood.

• Most FDI into Africa is related to natural resources;
• Due to the shift in commodity consumption towards Asia, Africa has become a key resources feeder to the “new world”;
• Significant world class undeveloped natural resource opportunities still exist due to investors bypassing of Africa over the past decades;
• Political improvements have reduced country risk in most of Africa over the past decade leading to investment and economic development.

IMF 2010 GDP Growth Forecasts:

Although Africa is “frontier territory”, South Africa serves as a sophisticated low-risk base to exploit the significant growth opportunities in less developed countries to its North.

1. Johannesburg stock exchange has $830bn market cap (19th largest in the world);
2. ZAR one of the most liquid emerging market currencies;
3. World class banking sector with strong financial sector regulation;
4. Low political risk, liberal and democratic constitution;
5. SA corporates and banks serve as a gateway to Africa;
6. 2010 FIFA World Cup host.

Umbono has unique advantages as an indigenous company in the Southern African context where we target “world-class” locations for specific natural resource classes.

Umbono has identified significant natural resources opportunities in selected areas of North America, and our Western Canada based team manages and sources investments here.