Follow ZeroHedge in Real-Time on FinancialJuice [7]
Investors will be fleeing Europe, they’ll be moving from Russia, getting far away from the USA as they can get and they’ll be going where the sun shines longer: Africa. Why? Simply because it’s worth it and the investment prospects there are far greater than they are anywhere else right now.
If you look at the top ten of places to invest in the world in the worrying times of the Chinese economy and the Indian woes, Africa has six countries that are worth taking a look at. They include Kenya, Angola, South Africa and Nigeria. Africa is said to have a potential growth of 6% in years to come and money can be made by investing there. Capitalizing on African economies is no plain sailing though and the instability (despite the apparent improvement of that) means that money can be made but perhaps not quite in the circumstances as any other country. It’s full of risks but if you invest, there’s greater potential than elsewhere right now. But, where does no-risk investment exist?
OECD nations are failing to grow despite whatever we might be told by governments round the world and Western economies are failing dismally to provide good investment projects. Few are willing or ready to take the plunge, however. That might be something good if you have the guts to do it.
South Africa, for example has clearly suffered from the withdrawal of Quantitative Easing and the billions been poured into emerging markets around the world. Economic growth has been cut from 3.2% to 2.7%, but that’s a lot more than what is being experienced either in Europe or in the USA today. Economists predict that economic growth for the country will improve to about 3.4% by 2015. Global demand has increased for South African countries and local exports. What is aiding African countries is the fact that they have huge potential as a market and secondly that they have a growth in population. Naturally, everything will depend on whether or not the developed markets continue purchasing and whether they have enough to be able to do so. Naturally, there has to be improvement in South Africa’s infrastructure and its logistics costs as well as improved competition between companies there before things can get better in terms of economic growth.
Wherever there is a link with the global economy, turbulence has been felt and Africa is no exception. The forecasts for this year for the entire continent are at around 5.3%. There has been a steady increase in economic growth from 2012’s figure of 4.2% (after excluding Libya’s oil production, which had previously madeGDP shoot up to 6.6%). Growth in countries has occurred economically, but not in terms of reducing the poverty levels in the country and there is persisting unemployment. There is the potential to employ and a potential to create jobs and reap the rewards of that.
In 2011, it was the European Union that purchased one third of African exports (but that was already a reduction from 2006’s figure of 37%). 11% of exports went to the USA. China stands at roughly 10% today (up from 6% 5 years before). Everything depends on what happens in Europe and also in China. But, the continent of Africa has the internal potential of its own markets in the years to come and that might mean long-term investment in that continent. Despite the failing of the markets of the EU and China, with which the countries in Africa seem dependent, they have still managed to survive the financial crisis and have positive figures for growth.
Investors won’t be staying in Africa, but they’ll be there to exploit them just as long and as much as they can. Africa has been exploited by the West, by Europe and by the entire world over its history. But, it’s the investors that will make the biggest big-game killing by going there today.
This is a return-ticket to Africa, where the investors will be soaking up the sun while the masses slave away on the dusty roads to success for the West.
Originally posted: Return-Ticket Investment to Africa, Please [8]
[7]