The London Stock Exchange confirmed it is seeking partnerships with exchanges in Morocco, Egypt, Kenya, and Nigeria to promote dual listing by African companies. The scheme could open up Africa’s agricultural and agribusiness sectors to outside investors on a scale not yet seen and would offer investors the potential to “benefit substantially” in the long term according to VSA Capital. Investment in Africa’s ag sector is currently dominated by private equity however listings by African agricultural companies are expected to increase in the coming years if recent growth can be sustained. While this is true, there are always risks to consider when investing in agriculture in developing regions as is being demonstrated by the disruptions to the cocoa market by the ongoing Ebola outbreak in West Africa which has had a ripple effect slowing operations at global giants such as Malaysia’s Sime Darby and Agriterra and could affect Archer Daniels Midland which has operations across West Africa.
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