Are the markets in Kenya cheap?

Why would investors invest in frontier markets like ghana, kenya, nigeria, Ecuador, Bangladesh, Sri Lanka,?

• ....iran, Bahrain and Oman. What are the common links among such a diverse group of nations?

• Answer:

  In short, investors would be interested in frontier markets because of the high rates of returns available int these countries as opposed to mature countries. Developing countries usually have a capital-deficiency, so that the return on capital is much higher than it would be in a more developed country. Another common link between most developing nations are industries based in primary products. Primary products are the resources that are indigenous to that country (e.g. oil in Nigeria, sugar in Ecuador). As countries develop, they tend to shift their main industries away from primary products.