NAIROBI Jan 29 Anglo-South African financial
services group Old Mutual Plc plans to raise the share
of profits generated by its African business to 15 percent by
the end of next year from 10 percent at present, the firm said
The group has already spent a quarter of its $500 million
kitty for investing in the continent that it announced last
year, to tap the region's fast growing economies like Kenya,
Ghana and Nigeria.
"The growth area in the world is going to be in Africa over
the next 30 years," Old Mutual's CEO Julian Roberts told
reporters in the Kenyan capital, Nairobi.
"As that grows, then people will need more financial
services, they will need their money to be managed ... they will
need the assets they buy protected."
Multinationals are increasingly betting on Africa because of
its big youth population, fast economic growth rates and
abundance of natural resources like oil and minerals.
Old Mutual's investment programme and profit projections
cover sub-Saharan Africa excluding South Africa.
The acquisition of Kenyan micro financier Faulu was in the
final stages and it would be concluded before the end of this
quarter, Old Mutual said.
Roberts cautioned that global firms needed to invest in
Africa over the long term to avoid the disappointment of
short-term shocks like the volatility ravaging some emerging
market currencies at the moment.
"When you have got economies that are growing, it is not
going to be a straight line growth. There will be ups and downs.
There's going to be shocks," Roberts said.