Emerging markets have been the talk for some time now. People go wild about the BRIC (Brazil, Russia, India, China) saying they are the bull markets and places to invest. However I think of the few we are missing out on the largest upcoming emerging market of them all. Africa, yes Africa this deprived nation has shown continuous growth and has become a continent filled with investment opportunities. Let me introduce you to BRICA and its new biggest player, Africa. So why do I like Africa so much? Read and find out.
Africa the next Bull Market
For a long-time now Africa has sustained continuous economic growth yet got little credit in which it deserves. In the past 6 years, Africa’s economic growth has sustained a 6% increase. It has grown much faster than Europe even throughout Europe’s boom years. It has strong capital standing. Governments have lower debts as big stimulus weren’t necessary, loans were not handed out free willing so there is very little consumer debt or much debt altogether. Corporations are growing at rapid paces using their leveraged balance sheets to promote further growth.
The economic machine has just started to turn in Africa and when it does there is a huge bull market ahead. Basically everything in life comes down to supply and demand. When someone wants something and everyone else finds out it goes up. Well Africa has the supply, and the demand is on its way. Africa is a natural resources rich nation that is in demand for major infrastructure up hauls. Visiting South Africa last year I noticed that, as with the anticipation of the 2010 World Cup new construction projects are everywhere.
They have invested billions in new infrastructure projects and are continuing to look to expand as they look to close the barriers between them and the outside world. China has taken a huge interest within Africa due to both the need for infrastructure and the natural resources. America to is expected to improve its relationship with the nation under the Obama administration and become business partners.
I see a high economic ceiling for Africa in the following sectors: Commodities, Infrastructure, Real Estate, and Telecom. The countries I am going to focus my investments around are: Nigeria, Algeria, Kenya, Ivory Coast, South Africa, and Morocco. Africa is a goldmine waiting to be mined. Its obtains a plethora of opportunities waiting to be tapped into. Check back in soon for further research on which stocks within the African Nation to invest in.