Date post: | 20-Jun-2015 |
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Question:
If you wanted to invest in one of the world’s fastest growing regions with a variety of diverse economies, rich natural resources, and huge opportunities for growth, where would you put your money?
According to McKinsey and Co., Africa is now growing much faster than the OECD Nations
According to the World Bank, nine of the 15 countries in the world (60%) with the highest rate of five-year economic growth are in Africa
Economics of Development
• Doug North• Institutions matter!• Africa is moving away from extractive
institutions
Africa is a major source of some of the world's most utilized minerals and
precious metals, such as gold, silver, copper, diamonds , iron and coltan (used
in computer chips and electronics), as well as oil, natural gas , uranium, bauxite,
and so many…
Gold
diamond
oil petroleum
cacaocoffee
Uranium to nuclear power
Timber woods
12 reasons to invest in Africa
• -Ground-floor opportunity
• -Low correlation• -Strong growth
expected• -Profitable companies• -Demand for
commodities• -Increasingly less
violent
• -China's involvement in the region
• -Infrastructure spending
• -Low debt• -Growing investment
from abroad• -Attractive valuations• -Young demographics
Angola
• One of world’s fastest growing economies: averaging 17% growth since 2002
• Producing more than 2 million barrels of oil per day
• Oil production accounts for 50% of Angola’s GDP
• 4th largest producer of rough diamonds
Ethiopia
• Economy is growing 10x faster than the UK• Broad-based economic expansion, with
services and industrial sectors growing at the highest rates
• Liberalized free-market economy
Mozambique
• Rich resource endowments that are expected to help to secure fiscal sustainability
• Strong performance in financial services, transportation, communications, and construction
Tanzania
• 6.8 and 7.1% growth rates (2012, 2013) beat regional averages
• Services, industry, and construction propel this performance
• Political stability/protection against nationalization
Ghana
• Oil production and mining activities lead industrial growth
• strong export performance of cocoa and gold• GDP expected to rise by 9%
Nigeria
• Vast oil reserves• 7.4% growth over the last decade
Mauritius
• Democracy/stable government• Excellent transportation network• Experienced financial sector• Good infrastructure/communications
Video 2
Conclusion