Author Box
Articles Categories
All Categories
Articles Resources

Emerging Markets Across Africa

February 27, 2012 | Comments: 0 | Views: 103

With clouds of economic meltdown thundering all over the world, investors are having a tough time to take their decisions. With news of so many companies seeking bailout from the government and the stock markets collapsing continually, the investors world-over can get skeptical about their decision to invest in a particular economy or in a particular market. With so many markets failing, investors have been looking on to those untouched and unexplored markets with high potential. In such a situation, Africa has highlighted itself as the next big market that promises unprecedented growth in the near future.

One would think that on seeing the economic scenario across the developed nations, investors cannot even think of zeroing down on Africa as their next destination for investment. Analysts would think that international investors would rather wait for the situation to get stable, and then invest in the favorite markets. Anyone having the above-mentioned notion can be proved wrong straightaway. Yes, Africa is one continent where stock markets have been booming and investors have been focusing on sub-Saharan Africa in the recent times. Surprisingly, Africa has a market capitalization of over and above $100 billion and its stock markets are considerably larger when compared to what Russia and Central Europe were when they were opened to foreign investors in 1990s.

Sub-Saharan Africa consists of nearly 48 countries with population of well over 800 million people; and this region does not include Middle East or Northern Africa. This population is nearly three times the population of United States and this is a great factor to make it a big market. However, South Africa is considered the most developed economy in this region, and accounts for nearly one-third of GDP of Sub-Saharan area. Number of stock markets in this area has multiplied with new stock markets in Ghana, Uganda, Zambia, Swaziland, Malawi, etc. Just to let you know the potential and growth of this area, the market capitalization of stock markets in Africa jumped from $113 billion to $245 billion from 1992 to 2002, which can be considered as outstanding by any standards.

The region is experiencing tremendous growth in terms of penetration of mobile phones and development of banking systems. Furthermore, the region has noticed increased foreign investment along with loan disbursement in the last decade. In addition to all this, countries like Ghana, Botswana, Mozambique, Kenya, Tanzania, Nigeria, Zambia, and Uganda were ranked as "emerging markets" by International Monetary Fund.

Undoubtedly, Africa still has a long way to go, but its progress in the past few years has been outstanding. It is definitely the next stop for investors who want to reap handsome returns. After all, you need to be optimist.

Welcome to Renasset- online version of Emerging Markets Reviews. Learn what emerging markets are and how to find the best Africa Investment Funds opportunities.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Emerging Markets In Africa


Eastern Europe

Forex dealing is dealing in currency trading and basically includes dealing in foreign exchange while the stock market dealing is the dealing of stock in a standard market market. The two types of

By: Anil Mali l Investing > Stocks l October 25, 2012 lViews: 245

Investments in silver metal can be done by several ways. The article talks about the best ways of silver investments. Silver, the precious metal has always attracted investors for several reasons.

By: Kyles Humphrey l Investing > Gold Silver l August 17, 2012 lViews: 305

The article offers reasonable reasons for high oil prices. Crude is indispensable and it is a great source of energy. The prices on oil keep on altering, sometimes it is too high and sometimes it

By: Kyles Humphrey l Investing > Stocks l August 17, 2012 lViews: 286

Many investors are unaware of new tax that will be levied as part of the Supreme Court’s decision to uphold President Obama’s health care reform. The investment tax, as it is being referenced,

By: Ben Esget l Investing > Retirement Planning l July 17, 2012 lViews: 405

A few months ago, I was at Starbucks talking to someone about stocks and bonds, he and his wife had worked hard and were worried about the stock market. They wanted something much less risky. He

By: Lance Winslow l Investing > Stocks l July 11, 2012 lViews: 434

The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning.

By: Lawrence Tepper l Investing > Retirement Planning l July 10, 2012 lViews: 240

People who would like to try the trading business have to learn the various tools that are used in analyzing the market trends and conditions. Mastering the use of the Fibonacci Trading Technique for

By: David Riveral Investing > Futures and Commoditiesl June 13, 2012 lViews: 164

The oil and gas industry is one of the considerably changing and most important global industries all over the world. Oil and gas both are obtained from under the surface of earth. These energy

By: David L Greenel Investing > Futures and Commoditiesl June 09, 2012 lViews: 229

There are many jobs available in the oil and gas industry. These jobs were available in the recession period as well. Since these jobs are considered evergreen, several people are engaging in this

By: David L Greenel Investing > Futures and Commoditiesl June 09, 2012 lViews: 187

Traders have long been using various trading techniques throughout the decades although there have been various changes that have occurred in the different markets such as commodities, stocks or

By: David Riveral Investing > Futures and Commoditiesl June 06, 2012 lViews: 159

Those who are interested in any trading activities must know something more about commodities. Learning how to trade commodities is important because it is one of the main trading systems all around

By: David Riveral Investing > Futures and Commoditiesl June 06, 2012 lViews: 154

Traders who are involved in trading commodity futures work on buying as well as selling of contracts. However, the delivery of the physical goods that are involved in the transactions will have to

By: David Riveral Investing > Futures and Commoditiesl June 05, 2012 lViews: 158