Lighting the Dark Continent
People have been expecting big things from the African continent for a long time, and they have continuously been disappointed. Below are four reasons why that may be about to change.
- I have personally noticed a huge increase in the amount of local interest in Africa. Many Kingston groups have sprung up offering a wide variety of help. Local business people regularly participate in project missions. There is much more media coverage.
- There is a large scramble for resources. There are some 500 companies working within the African oil industry. No one even knows for sure how much oil there might be, but it is the number one destination for oil investment.
- Highly publicized wealth funds are now involved. China, for instance, has an investment vehicle for general public use, through which they have been dumping a ton of money into the continent. According to the Organization for Economic Development, global investment in Africa over the next two decades will exceed $1.25 trillion.
- Africa now has exchange-traded-funds (ETF) listed on stock markets, which always means that there has been an increase in investment demand. A common ETF that offers a diversified mix of companies in South Africa has an average annual return over 40% in the five years since it was launched. Another ‘frontier’ ETF that tracks companies throughout Africa and the Middle East appeared last year.
