Africa investors see through the headlines

LONDON, Nov 8 (Reuters): Ebola, terrorism and political upheaval - headlines from Africa over the past year seem a far cry from the inspiring 'Africa Rising' story. But many newly found investors are sticking with the plot.

Even against the additional headwinds of falling commodity prices and the prospect of higher US interest rates, funds active in sub-Saharan Africa insist they still see a compelling growth story, driven by an uptick in regional trade, growing investment and a bulging middle class - the basis of the 'Africa Rising' thesis.

"The most consistent growth that we see across the globe seems to be coming from Africa," said Boston-based Asha Mehta, who manages Acadian Asset Management's $380 million global equity frontier fund. "And it's likely to play out over the next five to 10 years."

Emerging markets at large have had a torrid couple of years, fearful of a cresting of China's economic boom and higher US interest rates. The more esoteric frontier markets typically weathered this storm, however, as they drew in a different sort of investor - one more atuned to diversification, tolerant of higher risk and locked into long-term themes.

But even for Africa optimists, the news has been trying.