AFRICA: A STORY OF GROWTH

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Africa represents what we like to call "frontier" markets. To provide some perspective, you can think about global markets in three distinct segments. "Developed" markets like the U.S. and Europe sit at the top—they have strong regulation, a lot of liquidity, and broad, diversified industries. "Emerging" markets like China and India are a level down from there in terms of development. And "frontier" markets, like most of Africa and the Middle East, are areas where people haven't really invested before—they're nascent markets that have been very illiquid. Historically, you haven't been able to get much exposure to them, but now they are becoming investable thanks to greater integrity in the general business environment, a number of infrastructural improvements, and greater stability overall thanks to social, economical and political reforms. And because these markets are starting from such a low base, they're growing very quickly.