Africa aviation: Aéroports du Cameroun to list shares on the stock exchange

There have been tentative investments into the airport sector in Africa in recent years, and the Nigerian airport concessions have attracted international interest.

Out of the blue (although the government was mandated to do this five years ago) the Cameroon government, which is a 63% investor in Aéroports du Cameroun, has decided to sell some or all of its stake in the airport company by way of a regional bourse IPO - a very rare event in Africa.

Institutional investors on the continent and beyond will not be sleeping overnight outside the Stock Exchange waiting for doors to open. There are too many issues in play, including the vague government intentions, a small airport stock, underdeveloped main airports, no markets that can be expanded rapidly, lack of outbound travel, tourism that exists without a plan to develop it, and corruption.

But there are investors who are looking at Africa more these days, on the back of sorties into the region by the likes of TAV and Qatar Airways. Could this be a breakthrough moment?