Franklin Templeton Investments says it has had approval from the Luxembourg regulator to launch an African equity fund, overseen by Dr Mark Mobius, chairman of the firm's emerging markets group.
The fund will be able to buy shares in African companies and in companies from elsewhere that have their principle business on the continent.
Mobius said the fund's managers will seek to benefit from economic growth in Africa that he expects to be 7% a year over the next 20 years.
“Africa has impressive stores of resources, not only in minerals but also in agriculture – 60% of the world’s uncultivated arable land is found in Africa,” he said.
Mobius is also confident that Africa's young population and its growing middle class will ensure that demand for goods and services will increase in the coming years, accelerating economic development.
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