Hedge Fund Enko Flags Africa Risks for 2026 After Dollar-Linked Boom Year
Pockets of distress remain in Africa, with Senegal’s yield spread versus Treasuries standing at over 1,000 basis points.
Photographer: Damian Lemański/BloombergAfrican credit markets may disappoint investors hoping for a repeat of last year’s stellar returns, according to hedge fund Enko Capital Management LLP, which is seeking out trades to cushion against setbacks in the continent’s top performing assets.
The key risk for Africa is a reversal of the dollar weakness seen in 2026, and the possibility that central banks including the Federal Reserve are done cutting interest rates, said Alain Nkontchou, the chief investment officer at Enko, a $1.4 billion firm that manages debt and equity investments across Africa, including private credit funds.