BlackRock, one of the world’s leading asset managers, has announced plans to liquidate its iShares exchange-traded funds (ETFs) valued at $400 million, citing unprofitable business conditions in Nigeria and Kenya. The primary issue prompting this decision is the difficulty of currency repatriation, compounded by the recent devaluation of Nigeria’s naira. The iShares Frontiers fund, which has invested heavily in emerging market equities in Nigeria and Kenya over the years, will see its final trading day on March 31, 2025, marking the anticipated conclusion of an extended liquidation process.
This decision follows a proposal approved by the fund’s board of directors, who determined that the persistent liquidity challenges in frontier markets made liquidation the most viable option. Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here. Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and i nvest in Africa’s finest startups here . “In light of persistent liquidity challenges in certain frontier markets, including among other things, delays or limits on repatriation of local currency, the board determined that it is in the best interest of the fund and its shareholders for the fund to liquidate,” iShares stated. The extended liquidation period is a direct result of the significant impact of converting Nigeria’s naira, which complicates the liquidation .