http://www.economist.com/news/finance-and-economics/21575769-strategies-putting-money-work-fast-growing-continent-hottest
For some time now, Africa has been trailed as the ultimate long-term and
speculative investment opportunity. As the troubled continent finally
fixes its endemic economic problems of the past and starts to develop,
profits should start to flow more readily with the expectation that
stock markets will rise. Foreign direct investment has been on an upward trajectory in
Africa. Most Internationally acclaimed multinationals have increasingly
found Africa as the frontier of economic growth and this has been a
motivation for their investment within the continent.
3 comments:
I was reading a book called "Africa Rising", and it said there were a lot of misconception about this continent. There are a lot of business opportunities in Africa, especially because of huge human's needs of food, water, power, medicine, infrastructure and after they stabilized their banking system. However, there are still risks for investors if they don't recognize and address the social challenges this continent has been facing.
There is huge potential in Africa, however as rj has said its a long term investment. The next 100 years should see investment in Africa significantly increase.
It would appear on the face of it, without analyzing individual nations within the continent, that Africa represents a high risk and high return opportunity for investors. As some of the countries are extremely rural and many are involved in ongoing civil wars and battles to gain power among different constituencies, there is definitely a lot of risk but grassroots investment now could lead to major returns if the countries can successfully industrialize.
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