Euvin Naidoo on investing in Africa

Why invest in africa ?

Africa is the second largest continent by land area and population, behind only Asia. As Africa’s economies keep growing and its standards of living keep rising, high-growth public companies are emerging on the continent. We have the knowledge, experience and process to help you identify and participate in them.
The African continent is developing its own economic identity and infrastructure, similar to the European Union. Our pan-African perspective identifies multi-national companies based in Africa that are well positioned to grow with cross-border commerce and rising consumer markets.
Africa is a resource-rich continent with vast mineral reserves. Africa holds an estimated 30% of the world’s mineral reserves including 40% of the gold, 60% of the cobalt, and 90% of the platinum group reserves. According to the National Intelligence Council, 25% of U.S. oil imports will come from Africa by 2015. The largest economies in the world, including the U.S. and China, are looking to Africa for supplies of many valuable and strategic natural resources.
We believe that exposure to the best public companies in Africa can enhance investors’ overall exposure to emerging markets. Africa remains the least-researched sector in the emerging/frontier markets, and its stock market valuations are relatively attractive.
Frontier African markets offer a select few attractive public companies that have remained relatively undiscovered. The economics of the African continent are dynamic, and opportunities are constantly emerging. We believe active portfolio management can add significant value by monitoring macro trends, identifying the most attractive companies, and avoiding volatile or high-risk areas.

Resourse taken from http://www.nilefunds.com/investingInAfricaWhy.html

Investing in africa !

4 de last decade or so an financial uplifting in Africa has brought millions out of poverty. democratic system spread farther and earlier than ever before. In December, the World Bank reported that sub-Saharan Africas 2008 economic growth was 5.4 %, equaling Europe and higher than Latin America [Africa lastly ceded to Latin America its place as the worlds slowest upward region]. Even now, many Africans imagine they will escape the global credit crisis relatively unscathed.

We are living in a confusing time in the history of commodity markets. Commodity prices are currently high. Yet producers in Africa and other parts of the developing world do not seem to be benefiting from these high price. ... The rich industrialis ed North has set the rules of the game, but instead of holding its producers accountable to those rules, it is distorting markets in their favour. Meanwhile, African producer whose government have acepted to play by the rules are losing out.- - Dede Amanor-Wilks, ActionAid International

But all of ths comes very late in de game,after much of Americas capacity to lead has been lost or squandered. The charge of Americans hypocrisy is everywhere in the air. And stil the United States and Western institutions manage to talk out of both sides of their mouths when it comes to transparent govrnance, human-rights protection, and fair trade in developing countrie.
Leader in Africa and China are wel aware of this hypocrisy, ofcourse, and use it as leverage against us. A year ago, China threatend to stop borrowing fund from the World Bank if the agency didnt heavily water down its anticorruption demands. The gambit worked flawlessly: A week later, the bank succumbed, and then tried to keep China's threat a secret. Last summer, the World Bank was preparing to publish a report that included the startling fact that 750,000 Chinese die prematurely each year from air pollution; China's government stepped in and insisted that the bank delete the figure, arguing that it could provoke social unrest. Again, the bank complied -- and again tried to keep China's demand from the public.
Capital flight out of Africa shows Western hypocrisy from a different angle. For every dollar the West lent Africa between 1970 and 1996, studies show that 80 cents flowed back out in the same year, often into foreign bank accounts in New York, London, and Zurich. A 2005 report by the (Tony) Blair Commission for Africa estimates that "stolen African assets equivalent to more than half of the continent's external debt are held in foreign bank accounts."

Finally
South Africa Country & Currency Research Report ►South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. South Africa's Fundamental Currency Analysis (short term investment): South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. South Africa's Value Investor Survey (short term investment): South Africa’s economic environment is moderate. South Africa's General Trading Partners: China, Japan and the US are South Africa’s top export partners, while the leading industry is materials. South Africa's Commodity Trading Partners: South Africa produces a significant amount of uranium, palladium, diamonds, coal, and platinum for use domestically and especially as an export. SWOT Analysis of South Africa: The leading South African weaknesses are their high unemployment rates, discriminatory issues and HIV Aids. The World Cup has the opportunity to propel growth, while the outbreak of disease may burden the health care system. South Africa's Currency Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.

Prudent Investor

Prior to investing in mutual funds determine the following:


- Your current assets and debt:equity mix in that.
- Your risk appetite pertaining to your current age.
- Insurance and health covers and contingency fund.
- Period of investment and when are the returns needed to be utilized ?
- Target returns you aim to achieve.

Based on the above only you can determine the set of funds fulfilling your objectives.

African mutual fund investments

Investment in Africa

Africa, in the last Few years, has experienced a marked financial growth fueled by rising economies. South-South cooperation, as well as intra-African trade, has jump-started the continent’s development. This comes as the trade and industry center of gravity shifts from industrialized economies to large developing economies. Africa can only take benefits of the new economic landscape by addressing continental consistency, infrastructure development, and governance — both at national and cross border levels, to further the continent’s economic development.

By UNCTAD statistics, trade in supplies among Africa and developing countries has been on the upraise since the mid-90s. While it represent only $34 billion in 1995, trade rose to $97 billion in 2004, before surging to $283 billion in 2008. In the same year, trade between other developing countries and those in Africa exceeded the total volume of trade between Africa and its main trading partner, Europe, for the first time ever.Trade between Brazil and Africa, for example, quadrupled during the tenure of President Lula. Reputation at $6 billion in 2002 when he took office, trade between the Latin American country and the African continent has reached $26 billion in his final year in office. But while trade has increased, experts have encouraged Africa to take advantage of this new economic landscape to drive its economy.

Mutual Funds

Mutual funds need no introduction. They are one of the most popular investment vehicles in the country today. Mutual funds allow a group of investors to pool their money together and taste a broader range of stocks or bonds than they could if they were trying them on their own.

Some of the many benefits of investing in mutual funds are:

1. Very simple to purchase and sell
2. Mutual fund industry in India is very well regulated and transparent
3. Funds can be made in lump sum or intermittent payments

4. Diversification helps to defend from problem risk

5. Professional management saves time and costs.
6. Dollar cost averaging helps profit from small regular investments

There are a lot of categories of mutual fund scheme accessible today and in each category there are hundreds of mutual funds present akin to stars in a milky way. But depending ahead the category of mutual fund scheme you invest in, the earnings from such investments can be in the form of regular income and/or capital appreciation. The taxation differs for different categories of mutual fund schemes.

Investment in right time !

Oh... no...... seit.... ! this are the comon words which use in this days .. I remember that there was a day , once my DAD told this , I should have bought it that time itself ? ........ I remember when my father was looking for a land to build a house before 10 yrs back , unfortunatly he could not . It was not because we dont have money . And he started looking for a Land now , but what happen . price has gone up ... i mean it just shooted up like a rocket . N ow wat ? Lost the good opertunity . So i generally wanted to tell that the investment have to be mede in Right TIME !

About Me

This is Joseph Lillin . Recently i got very intrested in mutual fund and investment ..and hence i thought of making a blog on metual funds . Before that i would like to introduce myself .I Joseph From Cochin ,I have done my enginering in veltech eng college . I like driving , looking nature, and watching animal . I am straight forward man. I look things in positive way. Life is all about thinking big ,and hence i think positive . I belive in Jesus Christ the Son of Almight God . God have given lot of opertunities , but that time i did not use that opertunities. But when i really wanted to find an opertunity i could not see it . But lots of struggle ,God give me opertunity again .and hence i am able man now.