Sub-Saharan Africa risk premium has seen the highest rise in risk premium among emerging market private equity investment regions, according to an Emerging Market Private Equity Association (EMPEA) survey of private equity fund investors.
According to the survey released May 2009, Sub-Saharan Africa risk premium – the risk of investment relative to developed markets – stood at 8.4% , about 1.7 points higher than 2008.Russia and the Commonwealth of Independent States regions also had a risk premium of 8.4%, having risen about 1.4 points from last year.
North Africa risk stood at 8%, 1.3 points higher than last year, while South Africa recorded 7% 0.6 points higher than last year. Brazil, India, China and Central and Eastern Europe were perceived to have the lowest risk in emerging markets at 6.4%, with Brazil the only region signaling a drop in risk premium – 0.5% less than 2008.
The EMPEA surveyed 156 global private equity investors – limited partners, who invest in funds – as opposed to general partners who raise the funds. Click here for full report.