Many Companies Are Looking At African Investments

Jan 05

Mallory HintonAfrica , , , No Comments

Africa is a continent with a checkered history. From ruthless dictators such as the infamous Idi Amin in Uganda, to the shocking apartheid regime that ruled South Africa for decades, Africa has been considered a country ravaged with corruption, despair and poverty. The new image of Africa is radically different. Rich in a diverse range of commodities, Africa has attracted many foreigners who are making strong returns on their African investments.

Fifty of Africa’s 53 countries are enjoying a fast growing economy which is creating numerous investment opportunities. While western countries are treading water in floundering economies, Africa can boast economic stability in most of its countries. More than 50 percent of the continent’s population is under 20 years old, so there is a potent work force.

Morocco, in North Africa, is one of the most beautiful of all African countries. With a spectacular coastline and awe-inspiring landscapes, it is catching the attention of foreign investors in real estate. Because of its location, the culture in Morocco is a combination of African, Middle Eastern and European.

Botswana has been successful in encouraging much foreign capital. Investors have ploughed lots of money into Botswana’s wealthy industries such as coal mining, glass products, leather goods, and tourism. Countries that have invested strongly in Botswana are India, Portugal, the United Kingdom, Mauritius and China.

Kenya has become Africa’s third biggest foreign exchange earner. The top two places go to South Africa and Morocco. Kenya’s booming tourism industry is a result of many liberalization policies. The government is committed to maintaining political stability. This is a major reason for the number of people investing in tourism. Another lucrative investment opportunity is Kenya’s burgeoning film industry.

South Africa foreign investment figures have soared in recent years. Having survived decades of isolation because of its infamous apartheid regime, South Africa and its new democratic government have attracted millions of dollars in foreign investment. Of course much of the world’s new image of South Africa was created by Nelson Mandela. Opportunities are plentiful in many sectors of commerce and industry.

Nigeria is another country that has made a concerted effort to bring in foreign earnings. Nigeria generates most of its wealth through its involvement in the oil industry. Foreign investors are now confident about the potential profitability in Nigeria. The most popular choices are investments in oil companies, as well as investment trusts and unit trusts.

Malawi is another African country that has caused would-be investors to prick up their ears. Those who invest in Malawi’s vibrant agricultural industry are enjoying healthy returns. Because of its ideal climate and fertile land, Malawi is making a name for itself as a major food producer in Africa.

Uganda is an African country that welcomes foreign investments in almost all of its economic sectors. With a steady economy and a government with vision, more and more investors are seeing Uganda as a secure investment opportunity. Investors are permitted to retain a 100 percent shareholding in their investments. This is a big factor for potential investors.

Learn more about african investment. Stop by the African Infrastructure and Global Connection’s (AI&GC) site where you can find out all about investment in africa and what it can do for you.

What To Consider With African Investments

Dec 30

Jay BergAfrica , , , No Comments

In terms of an investment opportunity, the idea of committing finance to Africa can never really been on top of the agenda for most investors. With so many different options for investment elsewhere, and much safer options at that, why consider making African investments that could quite easily be lost without any potential reward?

The question is, why invest in Africa when there are safer opportunities elsewhere? Well, there are certainly big profits to be made, as well as the fact that you will be helping the poorest continent on the planet. The country does suffer from serious problems, from famine, disease and civil war, and this has put many people off investing for a long time. That is not to say that there is not great potential however.

Africa’s best chance for building itself up and digging itself out of all its woes is not on continued foreign aid and charity, but on continued foreign enterprise and investment from private companies. A couple of years ago roughly 1% of foreign investment throughout the entire world is invested in sub-Saharan Africa, yet this is changing. As the World Bank has said, Africa offers the highest returns on foreign investment for any region of the world.

with different risks such as political problems and currency fluctuations it is possible that your investment will fall into a black hole. However, in many parts of the continent, countries are seeing a rise in democracy and a stabilisation of their economies, which has in turn led on to the growth of new markets and industries.

Sub-Saharan Africa has been seeing its best economic performance for years and is fast on the increase. The largest areas of growth within the nations are infrastructure, finance, tourism and vehicles. Timely investments in these industries have seen very good returns for investors who are not risk-averse.

If you just look at the stock markets of these areas, it is plain to see that there is serious progress being made, as they outscore world averages consistently. At the same time the number of exchanges have seen a rise from eight to ten over the previous decade. Furthermore, the powerhouse of the continent, South Africa, has continued to see positive growth which is fundamentally important to the entire region seeing as it account for about 25% of the GDP.

Timely investments in Africa could provide some very good returns for the canny investor. Within their growing markets and industry, there are safer bets, and more risky ones. It all really depends on how much you are willing to risk in order to gain potentially large rewards.

For those therefore, keen on locating a fund that will offer then high potential investment returns, there are some available, in most cases, just be sure that you can take the hit of losing the money you have invested.

Want to find out more about african investment, then visit the African Infrastructure and Global Connection’s (AI&GC) site on how to choose begin investing in this economy.