Invest in Africa?

Where to Invest in Africa? Africa is perhaps the most attractive investment destination globally at the moment. Yes you heard that right ! Africa is a continent brimming full of potential, economic growth and investment opportunities. In our opinion Africa has already started following Asia’s development path and the coming decades will see a strong rise in incomes, continued reduction in poverty, and substantial economic gains for the investors who get in early. There are many reasons why we believe Africa presents an incredible investment opportunity for those with a long run outlook including:

• Africa is “undiscovered” from a global investment perspective resulting in what we think are unreasonably low valuations both in African debt and equity investments which offer attractive entry valuations, especially when compared to many more developed markets;
• Africa is about to experience a massive population boom, currently 17% of the world’s population is African, this is predicted to rise to 26% by 2050 and 40% by 2100. In common with many other countries that experienced a rapid growth in the working age population we expect Africa to benefit from a “baby boom”;
• Africa as a whole is already growing GDP rapidly from a “low base”;

Background – Africa has changed and is growing rapidly

Historically Africa was perceived as being unattractive to investors,  however in recent years investor interest in Africa has risen considerably – the arrival of the internet, rapid urbanisation, increasing access to infrastructure (most importantly power) has allowed Africa to finally break free from a legacy of slow economic growth, and poverty. Africa is now the final frontier of emerging market investment but learning where to invest in Africa requires dedication.

With a youthful, increasingly educated, connected and eager population Africa is set to be the bright light economically within a world that is ageing rapidly. Africa’s economic growth has already surpassed that of more developed economies for decades , and the continent is, in our opinion, likely to be one of the fastest growing economic areas in the world – if not the fastest – in coming decades.

However Africa is a HUGE continent with 54 countries, and a physical size – equivalent to North America, Western Europe, India, China and Japan combined. There are multiple stock exchanges, currencies, political systems and complexities. Some economies are growing at 10% + p.a. while others are struggling with a variety of social and political issues and a very small number are experiencing conflict.

Want to Invest in Africa ? How to Start…..

So where to start? Well first of all we suggest that you register on our AFSIC African Investments Dashboard – it’s totally FREE.

Don’t forget that many of Africa’s most important investors, including stock exchange investors attend the annual AFSIC – Investing in Africa event…..want to meet them? Download our Marketing Brochure to learn more or keep updated with investment opportunities by adding yourself to our community.

We offer a facility where you can connect with many of Africa’s leading stockbrokers, dealmakers and other parties who can assist you invest into most of the Africa stock exchanges. In order to search our database please click the button below:

Other Options for Investing in Africa

Option 1. Direct Investment into African Stock Exchanges

ASEA is the official organisation for Africa’s Stock Exchanges. You can review their website and discover which African countries have stock exchanges, and from there research which stockbrokers you would like to use to purchase or sell investments direct. When researching stockbroking firms you might focus on how big they are in each respective market and what their charges are. Bigger stockbrokers will see better flow of shares between buyers and sellers and may be able to assist you better in buying or selling securities. Many of the most important stock exchanges in Africa attend AFSIC, Africa’s investment event. You can meet them, and leading stockbrokers from across Africa at AFSIC.

Option 2. Direct Investment into Private Companies or Investments in Africa

Africa is full of talented entrepreneurs who are seeking capital to grow their business. These companies might be in the agriculture sector, renewable energy, retail, food, in fact any sector that you can think of. The huge size of Africa makes it pretty difficult to discover these investment opportunities. However if you are looking to invest in Africa we suggest that you register on our Investment Dashboard where you can be matched against investment opportunities across Africa based on your sector and country preference. There is no charge for this.

Option 3. Where to Invest in Africa – Invest via an Africa Focused Fund

If Africa follows in the footsteps of Asia there could be substantial economic gains for investors. One option is to let the experts make your investment for you by investing in an Africa fund, such as those run by our associated company Adventis Limited. The global investor universe has yet to really focus on the apparent (at least to us) opportunities and there are only a few specialist investment companies that allow you to invest into a fund specifically focused on African investments. Many of these attend the annual AFSIC – Investing in Africa conference in London. It may be worth reviewing the list of investment funds in Africa attending on our website, and contacting funds that appeal directly.

If you want to know more about where to invest in Africa, or to subscribe to receive our monthly investment factsheets we would be delighted to assist you, and you can contact our team for further advice.