September 22, 2011

Market Watch: Africa “The Most Fascinating Region in the World Right Now”

In an article published yesterday on Market Watch, the opportunity for investing in Africa has again been highlighted, with the author noting that Africa may be the ‘final frontier.’  While the article notes that investors’ perceptions of Africa are still 'rooted in the past,' it also points out that many of Africa’s perceived challenges are similar to Europe during the Industrial Revolution, or even Asia in the not so distant past. 
The article justifiably points out that there are yet a number of hurdles to be overcome as Africa continues to grow.   However, while it points out that political challenges remain, and infrastructure networks are often insufficient, it also notes that a number of countries are in a 'virtuous cycle,' in which faster growth of tax revenue facilitates higher infrastructure spending, which encourages faster growth.  As many of Africa’s economies are expected to grow by 7% or more in the coming years, this cycle is expected to perpetuate itself in many of Africa’s nations.
Overall, the article points out that an emerging Africa has two significant implications for the global economy: first, it could precipitate a turnaround in the bearish sentiment around the global economy.  Many investors are presently focused on concern over the Euro, and seeking the next growth story for investment.  Perhaps, the article suggests, that Africa is it.  In addition, the article notes that Africa could be the last real emerging market story.  Globally, nowhere is as underdeveloped as Africa, and should the continent continue to grow as it has been in recent years, it is only a matter of time before it could experience ‘explosive’ growth.   We could not agree more.
For more information about investing in Africa, please contact Nile Capital Management at (646)367-2820, or 

We know Africa - from Cairo to Capetown.

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