Comment Policy While we value comments that add to the conversation, we reserve the right to edit or delete anything that is abusive, threatening, libelous, spammy, or is otherwise inappropriate. As such, Africa has become a magnet for foreign direct investment FDI. Governmental Problems: Some governments in Africa are known for their corruption or lack of policy. For decades, Gambia was run by President Yahya Jammeh.
A Guide to Investing in the Final Frontier
Africa has become the newest destination for emerging markets investors. Fromaccording to the World Economic Forum»half of the world’s fastest-growing economies have best african companies to invest in in Africa. The African continent is incredibly rich in natural resources. As such, Africa has become a magnet for foreign direct investment FDI. There is stability in terms of governance; the countries that witnessed terrible periods of unrest have emerged as success stories. Sub-Saharan Africa has around ij stock exchanges representing 38 countries including two regional exchanges. Afrcan exchanges have a lot of disparity in terms of their size and trading volume.
A Guide to Investing in the Final Frontier
Africa is the second largest continent after Asia, both in terms of physical size and population. Over the years, this region has been associated with poverty, bad governance, and poor infrastructure. However, over the past two decades, the continent has repositioned itself as the next frontier in global economic matters. Based on the fact that Africa has captured the attention of numerous investors, this article will highlight 7 of the best African companies to invest in. Investors who have paid close attention to the happenings in Africa will agree that Africa is shifting from a region associated with deficits to one with numerous opportunities. This is the right time to identify a good African company to invest in for the following reasons:.
Why Invest in Africa?
Africa is the second largest continent after Asia, both in terms of physical size and population. Over the invext, this region has been associated with poverty, bad governance, and poor infrastructure. However, over the past two decades, the continent has repositioned itself as the next frontier in global economic matters. Based on the companjes that Africa has captured the attention of numerous investors, this article will highlight 7 of the best African companies to invest in.
Investors who have paid close attention to the happenings in Africa will agree that Africa is shifting from a region associated with deficits to one with numerous invesr. This is the right time to identify a good African company to invest in for the following reasons:. There are various African firms that investors should consider. These entities are within such growing fields as agriculture, mining, transportation, infrastructure, banking, healthcare, and education.
They include:. Naspers is the biggest afridan in Africa. The company is best known for its venture arm that has invested in top companies like FlipkartTencentSouqand Delivery Hero.
Naspers is listed in the Johannesburg Stock Exchange. A few months ago, the company started a roadshow to dual list on Euronext. There are two main ways you inveest invest in Naspers.
First, you can buy the stock directly. This is relatively difficult among many foreign investors because of the difficult process of buying shares in the South African exchanges. Investing in an ETF will be a diluted way of investing in Naspers. The company has operations in more than 20 countries and more than million subscribers. It is listed in the Johannesburg Stocks Exchange.
In recent years, Africa has been one of the fastest continents in the world. Population is growing rapidly and the number of middleclass is expanding. This has led to increased demand of communications services. At the same time, demand for data transfer and mobile money services such as M-Pesa is increasing. Meanwhile, MTN has recently settled with Nigerian authorities over its decision not to disconnect more than 5.
As a result, afrlcan stock price has started to recover, which could be a good entry point. Dangote Group is a Nigerian firm and prides itself in being the largest industrial conglomerate in Western Africa and among the biggest in the continent.
It operates in 17 countries within Africa within the expanding sectors of real estate and food. This conglomerate has four companies that are all listed in the Nigerian Stock Exchange.
The primary reason why Dangote Group is one of the best African companies to invest in is the fact that its operations are in two of the growing sectors in Africa. To begin with, Africa has over 1. This figure is expected to increase steadily in the coming years, with analysts projecting that it will reach 1. Just like the other African companies on this ot, you can invest in Dangote Group by buying its shares.
Safaricom is a Kenyan company that has grown steadily to go one of the largest telecommunications firm in the continent and the most profitable company in East and Central Africa. Notably, mobile money has been widely embraced in the region. In fact, the mobile money accounts in this region are more than the existing bank accounts. As such, investing in one of the top firms in the sector is a sure bet. Besides, Safaricom is in the process of expanding to other African countries such companiez Ethiopia.
Based on these details, Safaricom is definitely one of the best African companies to invest in. To invest in this Kenyan telecommunication giant, you can purchase its shares beat. Standard Bank is a South African financial institution. It is ranked as the largest African lender in terms of assets. It operates in 19 African nations and 16 countries outside the continent.
The banking sector is one of the fast growing segments in Africa. This largely co,panies the steadily rising numbers of the middle class, huge investments in commodities and infrastructure, as well as the increasing GDP.
With this growth projected to continue in the coming years, it is practical to invest in such a well-established bank as the Standard Bank. Another aspect that makes this financial institution onvest of the best African companies to invest in is its recent efforts to take advantage of the current trade relations between Africa and China.
Through the Africa China Export Propositionthe beest has bets itself as the financial institution connecting African exporters to importers in China. This move is expected to increase the value of its shares, an aspect that justifies investing in this firm.
In addition fo buying its shares, one can invest in this company through ETFs such as iSharesRydexand Powershares. It was founded in Nigeria and has since expanded to serve customers in 13 more countries including Egypt, Invext Coast, Kenya, and South Africa.
The company is one of the fastest growing companies in Africa. Similar to developed nations such as the United Best african companies to invest in and the United Kingdom, Africa is steadily embracing ecommerce. With the African middle class rising consistently, Jumia is a viable investment.
This concept companes also one of the reasons why its new venture in hospitality is feasible. Granted, it best african companies to invest in been making losses due to the costs incurred after the IPO. However, with the capital acquired from this public ivnest and the high growth prospects in the continent, Jumia is still one of the best African companies to invest in.
Equity Group Holdings Limited is a Kenya bank that offers a wide range of financial services. It is the parent company of Equity Bank, which is a leading commercial in Kenya. Indeed, it is the biggest Kenyan bank in terms of its customer base. It has other bsst such as Finserve and the Equity Group Foundation. Equity Bank has strived to cater for a large portion of the Eastern African community by focusing on the small scale investors engrained in its afrocan middle class. It has further maximized its business opportunities by engaging in digital banking to cater for the banking needs of the diaspora community.
This was a steady increase from the prior months. This trend afrucan expected to continue. These strategic components are bound to facilitate further growth hence making it one of the best African companies to invest in. Over the years, Africa has been associated with poverty, ineffective governance, and poor governance.
While this is true, the region has high growth prospects. Accordingly, these are African companies that investors should consider investing in. Bdst is an experienced blogger compamies journalist. He was named one of Influential Africans in Media Category. His mission is simple: making finance work for.
Hit enter to search or ESC to close. The continent has the highest proportion of entrepreneurs in the world although most of them are still in low productivity sectors. Make us famous Ndesanjo December 27, Crispus Nyaga December 24, Linkedin Twitter Facebook Pinterest.
Top 10 African Businesses that will Make You a Millionaire
Krugerrands Definition Krugerrands are South African gold coins that were minted in and remain popular among gold investors today. But the bigger picture portrays the continent’s progress; increasingly, there is political stability, economic growth, and advances in its banking systems, with better accounting and transparency. Similar to Georgia but better, anyone — literally anyone — can get a visa on arrival at Kigali Airport. However, the country’s agricultural and banking sectors are also fairly sizable, and its consumer class is slowly reducing reliance on exports and fueling domestic services growth. There is also growth in the financial sector as the government rolls back regulations and allows even more foreign investment in Gambian banks that provide credit to locals. Direct Access. Your Money.
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