The Johannesburg based subsidiary of Barclays Plc, Absa Asset Management is planning to establish a US$100 million fund to be used to invest in African shares. This was the announcement made by Managing Director Busisa Jiya.
He added, "We are now at the point where we are speaking with the regulator in South Africa. The larger the size, the better so I can say we are looking at US$100 million." He added that the Absa Group Ltd's purchase of African units of Barclay's would help in putting the fund together.
Absa is seeking to maximize opportunities in the world's second fastest growing region after Asia, with projected growth in the region to reach 5.8% according to International Monetary Fund estimates. Barclays is selling most of its African assets for US$2.1 billion through an all share deal increasing its stake in the South African lender from 55% to 62.3% as announced last December.
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