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Investing in Africa

8 November 2007 2,371 views 3 Comments

China’s market is getting harder and harder to understand; if they are in a bubble and how long it will last, or if there will be a correction and when, is a major topic with the coming Olympics. So I thought I would move the topic to another area. While there have been huge amounts of FDI in Asian countries, especially China, most people have been overlooking Africa. Global FDI levels for 2006 put Africa at 2.7% with investments equaling $36 billion.

Africa is in its growing stage. Africa’s GDP is expected to grow by 6.2% in 2007 according to the IMF which means it would grow faster then the world economy. Ghana’s stock market was even the world’s third best performing market last year, and Egypt topped that list. Africa is so filled with investment opportunities with a growing infrastructure, many more businesses will be able to begin operating in Africa. This is without even mentioning the abundance of natural resources spread across Africa.

There are already some opportunities to invest in Africa right now through ETF’s such as EZA, and GAF. Both have been increasing over the past year. Do some research and this may seem like a good opportunity for you. This could be a good spot to hedge against the U.S. markets.

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3 Comments »

  • Adam said:

    Hey, Alex.

    interesting article, you’re right about africa being in the growing stages, the potential for africa is huge and many people don’t realize it. i’m also a college student in the U.S and i’m trying to start a startup company focusing on africa and india. contact me for more info please. amuminsson@gmail.com

  • DR FRANK MORGAN said:

    I am a private investor based in the United Kingdom. I focus on seed capital, early-stage, start-up, ventures, LLC and all round completion and expansion of investment projects that need funding. I am interested to invest in your company on a long-term business relationship. If this is alright with you kindly get back to me with more details about your company. Dr. Frank Morgan.(Individual/Angel investor)
    contactpartners@yahoo.com

  • koe said:

    Hey Alex,

    I’ve read most of your articles and I’d like to contact you for more info.
    my email: fahin50@yahoo.fr.