Thursday, November 25, 2010

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

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