Frontier funds are currently very underweight with just 1.8% in Morocco, but may increase their exposure when its weight in the MSCI Frontier Index increases, according to Renaissance Capital. Its companies and banks have the funding needed to expand across the African Union (AU), which it joined in 2017,” he said. “Only 26% of actively managed GEM funds we monitor have any exposure (Egypt is just 0.14% of MSCI EM). We think a dovish Fed and ECB will maintain appetite for Egyptian bonds.”“We now forecast a stable Egyptian pound in 2020 and only minor depreciation in 2021. Renaissance Capital held its 2nd Annual North Africa Investor Conference in Marrakesh on January 22-23, which hosted 21 companies from across North Africa, as well as government officials, for meetings with global investors.

Source: The North Africa Journal February 05, 2020 18:56 UTC