Citigroup Sees Silver Lining to Nigerian, Angolan Currency Rout

Nigeria, Angola and Kenya are among African countries that could draw greater foreign investment flows in the wake of sharp declines this year for their currencies, according to Citigroup Inc.

“Countries where we’ve seen significant FX adjustments are clear winners from an investment perspective,” George Asante, Citi’s head of markets for Sub-Saharan Africa, said in an interview in Nairobi. “All these from a local market perspective offer opportunities.”

Nigeria’s naira is the worst-performing African currency this year, slumping more than 40% against the dollar as the country takes painful steps to patch up its finances by scrapping fuel subsidies and revamping a widely-criticized exchange-rate system. Angola’s kwanza is down 39% and the Kenyan shilling nearly 15%.

Source: Bloomberg