Why MSCI ex-SA?
The following analysis uses the MSCI Emerging Frontier Markets Africa Ex South Africa Index as well as the MSCI Emerging Markets Index as a proxy for Africa and global emerging markets. The exclusion of South Africa, is due to its relative size and sophistication from the African benchmark, which provides a clearer picture of the economic distribution within the continent. South Africa’s financial markets are far bigger and more developed than the rest of Africa. These proxies are most suitable due to the consistency in methodology across both indices, which allows for a like-for-like comparison. Comparing the MSCI Emerging Frontier Markets Africa Ex South Africa Index to the MSCI Emerging Markets Index sheds light on the economic disparity between African economies and the rest of the developing world.