Fixed Income / Investment Rationale

Enko Africa Debt Fund provides investors with exposure to high yielding fixed income available in the African debt Market.

As Macro policies improve in Africa, economic growth will expand further leading to declining inflation and tighter credit spreads.

Better Debt sustainability : At 35% on aggregate Debt / GDP ratio has decreased substantially , driven by the debt relief initiatives and stable commodity prices.

High Real interest rate : Most African central banks have an implicit exchange rate target and need to keep high real interest rate to stabilise local currencies.

Strong Structural demand for African debt product, with increasing interest from local Pension funds and insurance companies, while international investors ae seeking high yield.

Low level of credit formation, low level of financial intermediation and lack of private sector lending to high and attractive corporate yields.

Regulatory and legislative environment increasingly supportive of stronger credit activity.