How to Collect Dividends When Investing in African Stocks

Photo: Quiquemendizabal

Dividends are a key component of a stock’s investment return. But collecting and re-investing them can be a challenge for foreigners investing in African shares.

Here are some tips to make the process as efficient as possible.

Read More...

How to Invest on the Malawi Stock Exchange

Photo by Ismail Mia

A number of readers have been wondering about how to open a brokerage account on the Malawi Stock Exchange.

I can understand why. The little market in Blantyre posted the best return of any sub-Saharan stock exchange in 2013. Its All Share Index is up 75.2% over the past 12 months in US dollar terms. Performance like that would make even the most jaded of investors take notice.

So, what do you need to do to put money to work in the warm heart of Africa?

Here’s how to get started.

Read More...

How to Invest on the Johannesburg Stock Exchange

Photo by Henti Smith

South Africa is far and away the most economically developed of African states, and, as such, will likely be the continent’s economic gateway for the foreseeable future.

Truth be told, however, the Johannesburg Stock Exchange (JSE) isn’t exactly the most bullish of markets these days. In fact, the market is now at its lowest point in nearly two years.

But this isn’t necessarily bad news for value investors. Falling prices mean an increasing number of bargains are on offer. Earnings multiples are dropping and dividend yields are rising.

And because the Johannesburg Stock Exchange is one of the most sophisticated in the world, investors can scoop up these deals with a click of their mouse. The market’s accessibility and convenience make it an ideal place for new Africa investors to get their feet wet.

Here’s how to get started.

Read More...

How Can I Invest in the African Seed Industry?

Photo by CIMMYT

Hi Ryan,

This is going to sound a little strange, but both my girlfriend and I, days apart, had dreams where we were shown that it would be good to invest in African seeds. It was clear in both dreams that it had something to do with actual plant seeds.

I’ve never received investing advice in a dream before, but when my girlfriend had the same advice in her dream, after not knowing anything about my dream, I started to wonder.

Read More...

New ETF Makes Nigerian Stocks More Accessible Than Ever

Photo by S. Remeika

I literally jumped out of my chair last week when Jan Schalkwijk told me a new Nigeria ETF had just listed on the New York Stock Exchange.

Why was I bouncing around my office like I’d hit a buzzer-beating jump shot?

Because, at this moment, I believe the Global X Nigeria Index ETF is one of the most accessible, pure, and cost-efficient ways for US retail investors to tap into the Sub-Saharan growth story.

Read More...

Who Else Wants to Invest in Nigerian Stocks?

Photo by World Bank

In case you missed it, the Nigerian Stock Exchange is making investors wealthy of late.

Thanks to a raft of reforms and a growing realization of the investment opportunities in Africa’s most populous nation, the MSCI Nigeria Index is up 78.6% over the past 12 months.

And this bull run looks like it may have some real legs. The market remains well below its five-year high. The five largest companies on the exchange have an average P/E ratio of 15.4 in spite of them averaging earnings growth of 40.6%. And 23 foreign portfolio managers are poised to dive into the market.

I’m guessing some of you would like to do the same. Unfortunately, the market isn’t as easily accessible as its larger counterpart in Johannesburg. So how exactly can a non-resident invest in Nigerian stocks?

Read More...

Do I Need a Big Paycheck to Invest in African Stocks?

Photo by Mat Robertshaw

I’ve received lots of great questions from readers via the contact form in recent months. So I thought I’d answer some of them publicly in the hope that they might help answer others’ questions, too. Here’s one from Zimbabwe:

Dear Ryan,

l’m Zimbabwean and don’t earn much, but I feel like I should be investing.

Most of your articles are about Americans investing in Africa at minimum deposits that are far above an amount I can even dream of.

Is it possible for a minimum-wage earner like me to invest on an African stock exchange for a reasonable amount?

Kind Regards,

Nicky

Read More...

3 Frontier Africa Funds for South African Investors

6332712890_004e584593_b

Last week we counted down the ten best African stocks of 2012. There were some eye-popping performances on that list.

This came as no surprise to those of you who have been following the performance of African stock markets. Nigerian investors saw their market rise 55% in dollar-adjusted terms over the past 12 months. The Nairobi Stock Exchange soared 54%. And Zimbabwean stocks jumped 32%.

In light of these gains, many of you have asked whether there are African mutual funds that will allow you to simply and easily direct a portion of your investment portfolio toward these markets.

Here are three that are readily available to South African investors.

Read More...

11 Africa-Focused Mutual Funds and ETFs

Photo by Weesam2010

The US investment community is waking up to the African growth story. As a result, an increasing number of mutual funds and ETFs now boast significant African stock holdings.

But Africa is not a country. It’s a diverse continent with a myriad of different cultures, leaders, resources, and economies.

So, I thought it might be helpful to dig into these US funds’ portfolios to determine where exactly they are placing their bets.

Read More...

New Resource: The African Financial Statement Library

Photo by Dave Dugdale

You may have noticed that my posting frequency has slackened over the past couple months. This is due to a couple new projects that I’m really excited about. And I’d like to unveil one of them today — the African Financial Statement Library.

Read More...