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.


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 Unfettered by outdated fixed-line infrastructure, Africa is at mobile technology’s bleeding edge — pioneering everything from mobile payments to crowd-sourcing.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.


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.


Stock Showdown: Ranking Nigeria’s Best Banks

Photo by André Silvestre

If you’ve ever taken a look at the stocks listed on an African market, you likely noticed that they tend to be dominated by banks. Quite often banks are the exchange’s largest, most liquid shares.

It’s for this reason that I spend considerable time coming up with quick and easy ways to evaluate the relative attractiveness of bank stocks.

I walk through my method here.


How to Invest in Zambia

Photo by CIMMYT

Understated Zambia is quietly putting together one of the world’s most impressive records of economic growth. The Southern Arican nation’s GDP has grown in excess of 5.3% every year since 2003, and the IMF forecasts its economy will expand by 7.7% this year thanks to strong demand for its primary […]


Why Are Kenyan Agricultural Stocks So Cheap?

Photo by CIAT

Kenya investors don’t seem to like agriculture stocks, and I’m not sure I understand why. Almost all of them presently trade for a fraction of their book value and less than seven times their trailing earnings.

Granted, agricultural stocks do have their risks. But with the globe’s population growing and arable land becoming more scarce, I think the market’s pessimism is overdone.

Here are five agricultural stocks that put food on the table, and, possibly, profits in investors’ pockets.


Who’s Investing In Africa Now? Yum! Brands, SABMiller, and More

Photo by Carsten ten Brink

It’s not necessary to wire money to a far-flung African locale to invest in the rise of the African consumer. Here are three companies that are making big bets on the continent and conveniently trade on the New York Stock Exchange and the Pink Sheets.


18 South African Stocks That Trade On Wall Street

Photo by Damien du Toit

I’m a big fan of investing directly in African stock markets. The exchanges in Accra, Lagos, and Nairobi generally offer better bargains than what you find listed on the NYSE or Nasdaq. That said, it’s definitely not for everyone. Opening up foreign brokerage and bank accounts can be a real […]


How to Invest on the Rwanda Stock Exchange

Photo by Dylan Walters

Less than 20 years ago, the world watched as a paroxysm of genocidal violence wracked Central Africa’s land of a thousand hills. If ever there was a place bereft of hope, Rwanda was it.

Yet, to the world’s astonishment, the country refused to settle for merely rebuilding. Instead, it opted to transform.

Now, investors from both near and far have an opportunity to support Rwanda’s improbable economic success. The nascent Rwanda Stock Exchange (RSE) is open for business.


Who’s Investing In Africa Now? Unilever, L’Oreal, and Ormat Technologies

Photo by Lydur Skulason

It’s not necessary to wire money to a far-flung African locale to invest in Africa’s growing middle class. Here are three companies that are making big bets on the continent and conveniently trade on the New York Stock Exchange and the Pink Sheets.