ABN – The value of Africa’s traditional assets under management (AuM) in 12 markets across the continent will reach almost $1.2 trillion in five years’ time, according to PriceWaterhouseCoopers (PwC).
From just $293 billion in 2008 their value is projected to climb to $1.98 trillion by 2020, representing a compound annual growth rate (CAGR) of nearly 9.6%.
The increase will primarily be driven by economic growth and the subsequent rise in wealth, which will increase demand for pensions, life insurance products and retail investment funds.
Increased adoption of technology will make the delivery of these products cheaper, encouraging more Africans to join the formal financial sector.
PwC made these predictions by examining the asset management industry across 12 countries from every corner of the continent.
Ilse French, PwC Africa asset management leader, said: “As Africa has entered the 21st century, economic growth has surpassed expectations and stimulated investor interest across a broad range of asset classes.”
“Although the fund industry in Africa is, in most countries, still developing and has much to prove, global and local asset managers are likely to become more active as the industry continues to flourish.”