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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?
http://investinafrica.com/
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