February 14, 2011
Investing in a Post-Mubarak Egypt
The Wall Street Journal this morning has reviewed the possibilities for investors in Egypt following the country's popular uprising and regime change. The artice, found here, notes that the resumption of trading in Egypt is likely to be chaotic, and investors should remain aware of the risks investment in Egypt may pose. Of note, the article points out that the nature of the regime change is far from certain. Although a democratic transition and strong leadership could herald a period of growth for the country, the uncertainty in the short term is likely going to hurt the Egyptian economy. On the other hand, the article points out that a successful regime change in Egypt could engender further revolutions in nearby Arab countries, which could in turn contribute to volatility in the region.
The article also mentions Nile Capital, noting: "Manager Larry Seruma said he is optimistic that Egypt's middle class will be a catalyst for economic growth, and that the country's financial markets will become more transparent." For more information about investing in Africa, please contact Nile Capital Management at (646)367-2820 or info@nilecapital.com
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