An economic slow-down in China is unlikely to affect the growth potential for companies in Africa, according to JM Finn fund manager Anthony Eaton.
Eaton, manager of the £3.1m JM Finn Africa fund, says while China has become a major investor in the continent in recent years, the slow down in the economic superpower’s growth.
“A slow growing, wealthier China needs much more stuff than a poorer, faster growing one,” he explains.
“As far as Africa is concerned, if there is any slowdown, the value of Chinese economy and what it produces and consumes is still growing.”
He adds: “Foreign direct investment, overseas capital to Africa, has risen by 30x between 203 and 2011, from $500m to $15bn. Most has come from China.
“Last year the rate of inflows into Africa from America exceeded the amount coming from China.”
Eaton says other countries are now also investing in the continent.
He adds: “Africa is the strongest investment story out there. It has a very large, very young population. There is a ton of money coming in from elsewhere to promote its growth.
“It has a working population that will probably double over a 15-year view.”