Does Investing In African Stocks Help The Poor?

Photo by Dietmar Temps

I met a returned Peace Corps volunteer a few years ago. He’d served as a school teacher in Kenya in the late 1960′s, and, like me, he’d felt an affinity for the continent ever since.

As we chatted, I told him about my interest in investing in African stock markets. He was intrigued by the idea but made clear that it wasn’t his cup of tea. “Something about profiting off of Africa doesn’t feel right to me,” he said.

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Stock Showdown: Ranking Africa’s Best Hotel Shares

Photo by BA_Banks

In 1995, 18.9 million international tourists visited Africa. In 2010, nearly 49.4 million did. They were lured by the continent’s natural and cultural wonders and emboldened by an increasingly stable political environment. Now, rapidly improving infrastructure is making it easier than ever to visit the continent. The United Nations estimates […]

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Cash Out On UEPS?

Photo by Cian Ginty

Johannesburg-based Net 1 UEPS Technologies (UEPS.US and NT1.SJ) reported its third quarter 2012 earnings earlier this month.

Let’s get acquainted with the stock and see whether it represents a compelling opportunity for Africa investors.

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Stock Showdown: Ranking Kenya’s Best Banks

Photo by DEMOSH

So far, we’ve scoped out bank stocks in Nigeria and Ghana, analyzing their profitability, growth, risk, and value to separate the bargains from the bunk.

Now it’s time to turn to Kenya, East Africa’s largest economy. Ten banks call the Nairobi Securities Exchange home. All of them possess different strengths and weaknesses.

Let’s put them through our ranking exercise to help determine which ones merit a more detailed analysis.

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Stock Showdown: Africa’s Best Cement Stocks Mix It Up

Photo by Lafarge Zambia

The World Bank estimates that Africa needs to spend $93 billion per year on infrastructure in order to sustain economic growth. Currently, it invests less than half that amount.

The continent needs power plants, roads, bridges, and housing. And all of these require cement.

That’s right. Cement companies may be the best way for investors to leverage an African infrastructure boom.

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Who’s Investing In Africa Now? Marriott, Kraft, Cummins, and More

Photo by World Bank

It’s not necessary to open an African brokerage account to add a bit of the continent to your portfolio. Kraft, Marriott, SPX, American Tower, and Cummins are all making big bets on Africa and conveniently trade on the New York Stock Exchange.

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Stock Showdown: Ranking Ghana’s Best Banks

Photo by George Appiah

Last week we crunched the numbers of some Nigerian banks, analyzing their profitability, growth, risk, and value to separate the gems from the junk. I hope you got as much of a kick out of the exercise as I did, because we’re going to do the same thing again today. […]

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The Investing In Africa Index: Tracking Africa’s Most Accessible Stocks

Photo by Jeff Attaway

Index investing sure is popular these days. You’ve got your small-cap indexes. Your large-cap indexes. Growth indexes. Value indexes. Country indexes. Bond indexes. Any slight affinity among a group of securities seemingly results in some sort of new index ETF.

It’s got me feeling a little bit left out.

So, today I’m launching the Investing In Africa Index.

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Stock Showdown: Ranking Africa’s Best Telecom Stocks

Photo by Erik (HASH) Hersman

Nothing symbolizes the African renaissance better than the mobile phone. It represents technological advancement, deepening connectivity, and economic inclusion. Unfettered by outdated fixed-line infrastructure, Africa is at mobile technology’s bleeding edge — pioneering everything from mobile payments to crowd-sourcing.

So, African telecom stocks get a lot of attention. Companies like MTN, Sonatel, and Safaricom are followed by investors across the globe.

Let’s see how the six most prominent wireless stocks in the region stack up against one another.

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Where to Invest Now: Africa’s Cheapest Stock Market

Photo by World Bank

Much has been made of Africa’s rapid economic growth. And it truly is remarkable. The IMF projects that seven African economies will grow faster than 8% this year, and six of the top ten fastest-growers economies in the world will come from the continent.

Unfortunately, investing solely on the basis of growth forecasts often ends in disappointment. Rapid economic growth doesn’t necessarily translate into awesome stock market returns.

To get a true sense of where investment opportunity lies, we need to combine growth’s yang with the yin of value.

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