12 Reasons to Invest in Africa

Over the past decade, South Africa outperformed the MSCI Emerging Markets Index
By BEN BADEN
August 26, 2010 RSS Feed Print

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inShare7 Related Articles Find the Best Mutual Funds for You 100 Best Mutual Funds for the Long Term 9 Strategies for This (Or Any) Market Forget the BRIC countries of Brazil, Russia, India, and China. Larry Seruma, chief investment officer of Nile Capital Management, says many retail investors are missing a tremendous opportunity for growth in Africa. Seruma manages the Nile Pan Africa fund, the first actively managed, U.S.-based mutual fund to focus exclusively on Africa. He recently released a report, which can be seen here, that explains his investment firm's reasons for investing in the continent. Seruma says more investors will begin to look outside of developed markets like the United States for growth, because those markets aren't expected to grow as fast as they have in the past. "It's only much more recently you're beginning to see these huge disparities coalesce," he says. "The U.S. is going to have very low investment opportunities going forward." [See U.S. News's Mutual Fund Score to find the best investments for you.] Investing in Africa involves plenty of risks. The biggest, Seruma says, is liquidity. "Liquidity is really the ability to trade frequently," he says. "When you want to get out of a position, it's not easy to get out of a position." Executing trades can be difficult because some African stock markets aren't as transparent and not as much trading takes place compared with, say, the S&P 500. There are other concerns, including the threat of government and corporate corruption. Many African countries have become functioning democracies, however, according to Seruma. There are a number of other funds that give investors access to Africa and other "frontier" markets, which are also sometimes called pre-emerging markets. Templeton Frontier Marketsand iShares MSCI South Africa Index ETF are two examples. Out of the 53 countries in Africa, Seruma's fund currently invests in 14, which together account for about 90 percent of Africa's overall market capitalization. Here are Seruma's reasons for investing in Africa.

'Ground-floor opportunity.' Seruma says many investors have already missed what he calls a "ground-floor opportunity" in Africa. For the decade ending Dec. 31, 2009, an African composite index made up of eight countries, including South Africa, Nigeria, and Egypt, returned about 14 percent annualized. South Africa alone returned an average of 13 percent per year over that period. Compare that with the MSCI Emerging Markets Index, which returned about 7 percent annualized, or the S&P 500, which lost about 3 percent over the same time period. He compares the risk versus return ratio in Africa today with emerging markets like China, India, and Brazil in the late 1900smeaning that investors who enter a new high-growth market first reap the highest returns over time because they're willing to take on more risk. [See The Opportunity in Africa.] Low correlation. Correlation is a measure of how investments perform in relation to each other. A low correlation, for example, means that two securities will frequently move in opposite directions. According to Seruma's research, from January 2002 through June 2009, an African composite index of eight countries had a correlation of 0.59 with the S&P 500, 0.66 with the MSCI EAFE Index (which measures developed markets outside of North America), and 0.60 with the MSCI Emerging Markets Index. That means that 59 percent of the time, the returns of the African index differed from those of the S&P 500. Investors can use correlation statistics to find out how to better diversify their portfolios. "The African markets have a very low correlation with domestic or other emerging markets, so [you have a] good opportunity to actually reduce risk in the overall portfolio," he says. Diversifying your portfolio among uncorrelated assets can help offset big losses. [See Why Emerging Markets Belong in Your Portfolio.] Strong growth expected. According to projections from the World Bank, nine of the 15 countries in the world with the highest rate of five-year economic growth are in Africa. Seruma estimates that Africa is likely to grow by 4.7 percent over the next five years. Economists expect much slower growth in places like the United States and U.K. over the next few years. "It's a pretty huge growth differential," he says.

Profitable companies. There are a number of well-known companies that are based in Africa, including South African Breweries (a subsidiary of SABMiller) and telecom company MTN. Africa's total stock market capitalization now exceeds $1 trillion. A recent study by two economists, Paul Collier and Jean-Louis Warnholz, found that from 2002 to 2007, the average annual return on capital of African companies was 65 percent to 70 percent higher than that of comparable companies in China, India, Indonesia, and Vietnam. That means the African companies were more profitable. [See 7 Great Dividend Funds.]

Demand for commodities. "It's mainly driven by [the] BRICs," Seruma says. "As they industrialize, they're going to be demanding more and more of these commodities." For instance, 10 percent of the world's oil reserves and 40 percent of the world's proven gold reserves are found in Africa, according to Seruma. Increasingly less violent. According to Freedom House, 63 percent of Africa's population now lives in countries designated "free or partially free." Compare that with Asia, which has a score of 66 percent. Seruma says most African countries now have functioning democracies. "It's a very different picture from what it was 20 years ago, and that has increased investment," he says. China's involvement in the region. Seruma singles out China because many Chinese companiessome of which are backed by the governmenthave made significant investments in Africa. "They are really taking a long-term view about investing in Africa," he says. The governments of countries like China have realized that they're going to need resources from the African continent to fund their growth and consumption in the future, Seruma says. [See 3 Ways to Invest in China's Powerhouse Economy.] Infrastructure spending. Countries are no longer coming to Africa solely to extract resources. They're beginning to stay and help make important infrastructure improvements in the continent, Seruma says. "The old story of investment in Africa was 'let us get the natural resources out of the ground and immediately ship it out,'" Seruma says. "Now it's changing. Not only do they go to Africa and make an investment in Africa, but they're also making the additional development projects." For instance, diamond giant De Beers recently signed a deal to mine diamonds in

Botswana, including a commitment to build a diamond sorting facility. Low debt. Concerns about sovereign debtthe debt that governments owehas made headlines in Europe. Countries like Greece, Portugal, and most recently, Ireland have seen their debt downgraded by ratings agencies like Standard & Poor's. The United States also faces a huge budget deficit. Seruma says he believes that the United States will see five or six more years of low interest rates, which will lead many investors to look to different regions of the world for higher yield. "The capital being pushed out of the developed markets is going to benefit Africa," he says. "We believe this time around, there is some sustainability in terms of capital flows." Many African countries don't have the same worries. Seruma cites Nigeria, which has a debt-to-GDP ratio of only 18 percent, compared with countries like Greece and Japan whose debt-to-GDP ratio is more than 100 percent. Growing investment from abroad. Seruma also cites a United Nations Conference on Trade and Development report, which shows that capital flows to Africa are higher than three of the four BRIC countries. Africa is ahead of Brazil, India, and Russia. It's second only to China. Attractive valuations. Seruma believes that many African countries are currently trading at attractive valuations. He says the average price-to-earnings ratio for African companies is about 8 to 9 percent compared with the S&P 500, which has an average P/E ratio of about 15 or 16 percent. "There's a huge valuation differential that is not explained by the risk," he says. Young demographics. Compared with other regions of the world, Africa has a much younger median age, which

means African governments aren't as burdened by elderly populations and pension plans. It also means that Africa has a young, vibrant workforce, Seruma says. Africa's most populous nation is Nigeria, which Seruma accounts for about a quarter of Africa's total population. Nigeria's median age is 19 years old. Compare that with 37 in the United States, 40 in the U.K., and 45 in Japan.
1. Many people dont know about the investment opportunities in Africa. Investing is more like grocery shopping and less like rocket science, so its amazing that a lot of the information on investing reads like a series of calculus equations. Investment lingo sometimes seems too technical, maybe thats one reason why so few people know about the opportunities in Africa. It is worth noting here that there are generally two types of people that invest: institutional investors and retail investors. Institutional investors are people that invest on behalf of large institutions like banks and operating companies and deal with large pools of money. Retail investors are individuals that invest for their own personal benefit or small business. Its safe to say that the lack of knowledge on investment opportunities in Africa is more widespread among retail investors. 2. Many people dont know what to invest in when it comes to Africa. While Africa still features a lot of starving children with flies circling about their heads; nowadays, Africa also features about 10 stock exchanges according to bizcommunity.com. The market capital has risen from $5.5 billion in 1988 to $569 billion in 2005 (excluding South Africa). In addition, small investors are able to access Africas growth potential through the T. Rowe Price Africa and Middle East Fund (nasdaq: TRAMX), launched September 2007. The SPDR S&P Emerging Middle East & Africa (nyse: GAF) exchange-traded fund is another option according to John H. Christys commentary on Forbes.com. 3. Africa can supply the demand for commodities. Think of Africas natural resources. According to Nile Capital Management, 10 percent of the worlds oil reserves and 40 percent of the worlds proven gold reserves are in Africa. In addition, Africa contains 90% of the worlds platinum reserves, about 80% of its cocoa and diamonds, 60% of its phosphate, 50% of its bauxite and chromium reserves, 20% of its titanium, and close to 15% of its oil and natural gas. (Source: US Geological Survey, Credit Suisse). 4. Big multinational companies are spending big money to build up Africas infrastructure. For example, diamond industry leaders De Beers recently signed a deal to mine diamonds in Botswana, including a commitment to build a diamond sorting facility. And the Infrastructure Consortium for

Africa (ICA) reported on Jan. 18, 2011 that IBM will be joining Bharti Airtel (which services 16 African countries) to improve its telecommunications infrastructure. 5. There are African companies operating at a profit in Africa. Africas total stock market capitalization now exceeds $1 trillion. Companies like telecom enterprise MTN and beer maker South African Breweries (a subsidiary of SABMiller) are relatively profitable. From 2002 to 2007, African companies were more profitable than their counterparts in Asia; the average annual return on capital of African companies was 65 percent to 70 percent higher than that of comparable companies in China, India, Indonesia, and Vietnam according to economists Paul Collier and Jean-Louis Warnholz in their article Nows the Time to Invest in Africa featured on the Harvard Business Review. 6. There are a lot of young people and young families in Africa. The workforce in Africa is young and energetic. More so, African governments dont have to dedicate a lot of resources to elderly care and pension plans. 7. Domestic demand is set to rise as more people in Africa move up the economic ladder. Consumer spending for goods and services in sectors like telecommunications, transportation, wholesale and retail is increasing. Africas consumption has grown by $250 billion since 2000 according to the Global Insight United Nations Conference on Trade and Development, McKinsey Global Institute. Estimates show that 85 million African households earned $5,000 (USD) or more in 2008. The numbers of households with discretionary income is projected to rise by 50% over the next ten years, reaching 128 million. By 2030, the continents top cities could have a spending power of $ 1.3 trillion (USD). African households spent $860 billion (USD) in 2008. And African consumers as a class will spend about $1.4 trillion (USD) in 2020. 8. Politically-motivated violence is not good for business and Africans are starting to see this. Functioning democracies in Ghana and South Africa are two cases in point. In 2007, FreedomHouse.org reported that out of the 48 countries of sub-Saharan Africa, 11 were rated Free for their performance in 2006, 22 were rated Partly Free and only 15 were rated Not Free. In essence, about 63 percent of Africas population now lives in countries designated Free or Partly Free. 9. Economic growth is in the air in Africa. The World Bank projects that nine out of the 15 countries with the highest rate of 5-year economic growth are in Africa. According to the World Banks Global Economic Prospects 2011, released on January 13, the GDP growth rate for SubSaharan Africa was projected at 4.7% for 2010, from a 1.7% low in 2009, and set to increase to 5.3% in 2011 and 5.5% in 2012. This compares to negative growth for the United States in 2009 (-2.6%) and weak recovery in 2010-2012 (2.8%, 2.8%, and 2.9%). Notably, the best growth rates were for countries other than South Africa, Africas largest economic power. Rates for South Africa, with a negative rate of -1.8% in 2009, are projected at 2.7% for 2010, 3.5% in 2011, and 4.1% in 2012.

Other countries in the Sub-Saharan region, by contrast, grew an average of 5.8% in 2010, with 6.4% and 6.2% rates projected for 2011 and 2012 respectively. 10. Low Debt-to-GDP ratio in several African countries. For example, in 2010, Nigeria had a debt-to-GDP ratio of only 18 percent, compared with Greece whose debt-to-GDP ratio was more than 100 percent. The point here is that a low debt-to-GDP ratio represents an economy that produces a large number of goods/services and in turn profits that are high enough to pay back debts. Governments aim for low debt-to-GDP ratios in order to position themselves to pay back public debts a good sign for a small investor or SME that decides to participate in a program that is wholly or partially paid for by public funds. 11. Stocks in African exchanges are comparatively cheaper. The average price-to-earnings ratio for African companies is about 8 to 9 percent compared with the S&P 500, which has an average P/E ratio of about 15 or 16 percent according to Larry Seruma, chief investment officer of Nile Capital Management. Investopedia defines the P/E ratio (price-to-earnings ratio) of a stock (also called its P/E) as a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. P/E is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio. 12. It is kind of easy to invest in African stocks. For example, investors in the US can trade in realtime on the Johannesburg Stock Exchange, and other exchanges simply require an emailed request to a broker. African exchanges have improved their trading systems and governance, and brokers are following suit to improve their quality of service and deepen their knowledge. 13. Gain an appreciation for the difference between risk and volatility. Volatility generally indicates the level at which an investor may experience huge price swings, but this doesnt always translate into risk. Risk means an exposure to the chance of injury or loss. The S&P 500 is certainly less volatile than stock markets in Africa; nevertheless, a big reason investors invest in the first place is for the return the food. According toAfricaBusinessSource.com, the risk-adjusted return of the S&P 500 was not as attractive as the return in most African stock markets over the past five years (in effect, the risk-adjusted return of the S&P 500 was a less desirable slice of bread). 14. African politicians and professionals are beginning to question the continents dependence on foreign aid and now see other forms of foreign investment as healthier than foreign aid. For example, economist Dambisa Moyo argues in her book (a New York Times bestseller), Dead Aid: Why Aid Is Not Working and How There is Another Way for Africa, that foreign aid has not worked for Africa because it creates a culture of dependency and corruption and African governments should phase it out. President of Rwanda, Paul Kagame, agrees with Moyo and has taken steps to demonstrate his increased focus on other forms of foreign investment: a) buying a copy of Moyos book for every member of his cabinet; b) penning an op-ed in the Washington Post titled Why the

U.S. Needs Africa on Sept. 21, 2009 in which he states that Africa and the United States may be on the verge of a new partnership, not one of dependency and aid but one of shared ideas, vision and investments that increase our mutual prosperities. 15. Africa is untapped Ozii Obiyo, international business consultant, used the term untapped to describe Africas potential for positive growth across many sectors in a recent interview. Untapped is especially useful when describing Africa as that term is used to describe the process of collecting palm wine from a palm wine tree. Palm wine is a ceremonial drink rich in tradition and often used to celebrate success and show respect. 16. Africa features the worlds last frontier market. Frontier markets are like small gardens compared to the big farms of emerging markets a la Brazil, India, and China. The equity markets and capital markets in Africa tend to be too small or too illiquid. For example, as of July 2008, the Uganda Securities Exchange in Kampala listed just nine companies and trading took place only about 11 days a month; and the exchanges average daily volume was $200,000. Nevertheless, equity flows to Africa doubled in the years between 2004 and 2008 to $7 billion (USD) per year according to economist and financial strategist Olivier Lumenganeso. 17. Africas agriculture is ripe for harvest. McKinsey Global Institute estimates that Africa has 60% of the worlds uncultivated arable land. The continents agricultural output could increase from $280 billion (USD) -the estimate as of July 2010- to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030. 18. Helping Africa meet its electricity needs can be the light at the end of the tunnel for small investment opportunities that have long-term benefits.Infrastructure development projects are usually the type of investment opportunities reserved for big, institutional investors and project finance endeavors; however, Africas need for electricity is so deep that even smaller investors can offer solutions, albeit, on a much smaller scale. There are a lot of rural communities in Africa that are far removed from electrical grids. Individual systems, small geothermal plants, or diesel generators can be supplied to these communities under carefully crafted arrangements that can turn a profit for the investor/provider. 19. The modularity of renewable energy offers investment opportunities in Africafor small investors and small to medium businesses. Renewable sources of energy can be modular in their production and delivery; and Africa is blessed with an array of renewable sources of energy like wind and solar. As an illustration, the solar panels used to produce solar power do so by converting sunlight into electricity and these panels consist of a group of solar cells that perform the energy conversion on a cellular level (e.g. each cell can produce 1-2 watts of power). To produce viable amounts of solar power that can power up a home and then a group of homes, the cells are joined to form a panel and additional panels can be joined for additional power. The modularity of solar power allows small investors to invest in particular steps in the production process or supply chain.

20. Africa is, of course, a whole continent and investors can use certain mechanisms to categorize each country in Africa based on the countrys risk/reward potential. For example, a report by McKinsey & Co articulated a 4-part framework for strategizing investment opportunities in Africa. The framework places each African country in one of four categories based on level of economic advancement (from most advanced to least advanced): Diversified Economies (e.g. South Africa, Egypt, Morocco, Tunisia), Oil Exporters (e.g. Nigeria, Angola, Algeria), Transition Economies (e.g. Ghana, Kenya, Senegal), and Pre-Transition Economies (Ethiopia, Congo, Mali). 21. Nigeria, Africas most populated country as of Jan. 2011, has a fast growing financial sector. Relatively speaking, investors tend to have an easier time obtaining capital and other credit facilities in Nigeria. Banking regulations and financial reforms were put in place throughout the mid 2000s, spearheaded by Prof. Charles Soludo (Rhodes Scholar, economist, and author of NEEDS program) as Central Bank of Nigeria governor. These reforms: raised minimum Shareholders Fund for banks in the country to N25 billion [about US$200 million] from the former level of N2bn [US$15MN]; provided incentives for banks in the country to consolidate through mergers and acquisitions; sought to encourage banks to play active development roles in the Nigerian economy, while being competent and competitive players in African regional and global financial systems. For more information, check out: 2005 US Africa Summit of the Corporate Council on Africa, Baltimore, USA 22. Nigerias government is pursuing a policy of trade liberalization and openness to privatization slowly but surely. Since 2000, the business environment in Nigeria has been more amenable to foreign investors esp. with regard to the capital intensive sectors of the Nigerian economy like telecom and oil & gas; also privatization allowing private ownership of previously government-owned operations and property seems to be on upswing in light of a rise in government consented real estate transactions since the start of the 21st century. Notably, the rationale behind government consent for real estate transactions in some parts of Nigeria is that by default the government owns the land. 23. South Africa, Africas largest economy as of 2010, offers attractive investments in real estate and land properties. The country is a top-notch vacation spot, and it has a lot of young professionals looking for good housing. In addition, real estate developers are given tax breaks of up to 20% while another 20% tax break on rental is available for renovation projects according to SA Home Traders. 24. South Africas workforce is highly trained. The South African government has made a commitment to spend big on education and training as part of the Joint Initiative on Priority Skills Acquisition (JIPSA) which brings together the efforts of government, business, and labor unions to ensure that core professional skills are picked up through targeted training. As a result of this initiative, South Africa now has 1000 engineering graduates per year. This number is on track to increase to over 2000 per year by the end of 2011.

25. Ethiopia, Africas oldest independent country according to BBC, offers significant tax incentives for import of investment capital goods. According to theEthiopian Embassy, there is a 100% exemption on importing investment capital goods like plant machinery and construction material into the country. Also, products developed in Ethiopia are exempt from export tax. 26. Ethiopia is quite liberalized with its permission of remittance out of the country. For example, remittance is permitted for: principal and interest payment on external loans, payments associated with technology transfer, proceeds from sales or liquidation of an enterprise, salaries and other payments. Also, a 100% foreign ownership of an investment or enterprise is permitted. 27. Egypt, strategically positioned at the intersection of Africa, the Middle East, and the Mediterranean region, gives investors access to key global markets from one location. For example, the EU-Egypt Association Agreement set up a bilateral trade agreement based on reciprocal liberalization for both industry and agriculture. In essence, Egyptian products from garments and furniture to food products enjoy special access to European Union markets. 28. Algeria, one of Africas leading oil producers, is benefitting from increased government spending and openness to free trade. For example, the National Investment Council (CNI), chaired by the Head of State, was created to strengthen the legal and regulatory framework for investment. CNI underwent an institutional restructuring in October 2006 to boost investment opportunities that are of interest to the national economy. The CNI is in charge of defining investment strategy and priorities, approving special investment incentives by sector, and giving final authorization for special investment schemes. According to ANIMA Investment Network, the government passed a law in 2005 that requires all companies working in foreign trade to increase their capital stock equity to a minimum of DZ20 million (about US $275,000). 29. Mauritius ranks 20th among 183 countries (and first in Africa) as the Easiest Place to Do Business. The Easiest Place to Do Business report is prepared and released by the World Bank, and the ranking for Mauritius is benchmarked to June 2010. A high ranking means that the countrys regulatory environment is relatively conducive to the starting and operation of a business. 30. Ghana was the site of President Barack Obamas first presidential visit toAfrica in 2009. Also, Ghana was the site of stock broker and The Pursuit of Happynessauthor Chris Gardners I am here to learn engagement with African entrepreneurs, young professionals, and corporate executives in 2010. Coincidence Maybe or maybe not. 31. Kenyas pharmaceutical market shows promising signs (from the investors as well as from the patients standpoint). Responding to the demand for better health services (i.e. patient care, pharmaceutical products, and medical equipment) is becoming commercially viable as more segments of the population are able to pay for care which in turn makes such services more affordable and accessible. According to TradeInvestKenya.com, Kenya is the largest producer of

pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region as of 2010 and Kenya supplies about 50% of the regions market. Kenyas own pharmaceutical and consumer health market is estimated to be worth an estimated $160 million (USD) per year. 32. Democratic Republic of the Congo (DRC) has a one-stop shop that helps investors who want to invest in the country. The National Agency for Investment Promotion (ANAPI) treats investors as though theyre on a VIP guest list. It assists the investor during and after the approval of his/her investment opportunity with: airport or harbor welcome; transportation from airport to downtown and to various towns; reservation in hotels; search for land concessions and/or premises; search for foreign and domestic partners; set up of companies; and various other information on the Congolese. Approval of a given investment opportunity is based on its advantages to the Investment Code which is intended to favor competitiveness and business development. 33. Botswana was the 2nd Fastest Growing Economy in 2010. According to EconomyWatch.com, Botswana experienced a 14.4% GDP growth rate. In fact, Botswana has been one of the fastest growing economies in the world since it gained its independence in 1966 according to figures from the World Bank. 34. Angolan Stock Market and Derivatives (BVDA) will open in 2011. According to finance minister Carlos Alberto Lopes, everything is being done to get BVDA up and running smoothly. Antonio Cruz Lima, Capital Market Installing Commission chairman, said the stock market is reasonably prepared to open. Some experts believe that the new constitutional reality of the country gives investors some assurance of Angolas commitment to political stability. Notably, the new Constitution of the Republic of Angola was approved in January 2011. 35. Cameroon, Africa in miniature for its climate and cultural diversity, privatized its national mobile telecommunications provider, CAMTEL Mobile in February 2000. This has been a major development especially given the fact that Africa is reaching a period where mobile data may overtake voice in revenue generation. Allafrica.com reported in November 2010 that the president of Ericsson in Africa, Lars Linden, views the innovation in Africas information and communication technology as substantial enough to enable mobile telecommunications operators to increase data services they offer through mobile phones and in turn generate more revenue for telecom operators in Africa. 36. Tanzania has the confidence of investors and world class bankers. In a survey reported by the Tanzania Embassy-China in 2010 and conducted jointly by the Tanzania Investment Centre (TIC), the Bank of Tanzania (BOT), and the National Bureau of Statistics (NBS), 71% of existing foreign investors in Tanzania expressed desire and readiness to expand their businesses and only 10% were considering contraction. In addition, investors have access to credit with the presence of major banks such as Standard Chartered, ABSA, Barclays, Citibank, Stanbic, and Exim.

37. Liberias debt relief. The World Bank and International Monetary Fund announcedon June 29, 2010 that they were supporting Liberia with a debt forgiveness package worth $4.6 billion (USD). 38. Tunisia has a high level of skilled human resources and business incorporations. During the first eleven months of 2010: 188 new firms with foreign participation started their production phase; 212 expansion operations were carried out by foreign companies operating in Tunisia as part of the development of their activities; and 14,776 new employment positions, including 11,966 positions in the manufacturing industry were created. (Source: FIPA-Tunisia) 39. Rwanda is open for business. In addition to President Kagames focus on private investment for economic development, Rwanda represents the hub for the increasingly integrated East African Community (EAC), an intergovernmental organization that includes Uganda, Tanzania, Kenya, and Burundi. EAC has a market of 125 million people with a combined GDP of over $70 billion (USD). According to Reuters Africa, the EAC is a probable precursor to the establishment of the East African Federation, a proposed federation of its five members into a single state. In 2010, the EAC launched its own common market for goods, labour and capital within the region, with the goal of a common currency by 2012 and full political federation in 2015. 40. Namibias close ties with India can lead to long-term economic development thats beneficial to both countries. The India-Namibia relations date back to Indias early support of the Namibian liberation movement that began in 1966. In 2009, India and Namibia signed agreements to strengthen cooperation in trade and increase investments in sectors such as mining, agriculture, and textiles. As India moves from an emerging market to a developed market, Namibia can become less of a lion market. 41. Morocco has the strategic ability for olive oil production to help meet the worldwide demand. Worldwide consumption of olive oil is on the rise. The US market for olive oil grew by more than 50% from 2000-2010. Morocco is the worlds 6th largest producer of olive oil and its production is projected to increase by 267% in 2020. 42. Swaziland enjoys preferential trading status with the United States and the European Union. The country has received trade preferences for apparel exports under the African Growth and Opportunity Act (AGOA) to the US; and for sugar to the EU under the Generalized System of Preferences (GSP). 43. Mozambique is growing its trade & exports portfolio while alleviating poverty.Mozal, Mozambiques largest and Africas second largest aluminum producer began production in mid-2000 and has greatly expanded the nations trade volume and jobs. Also, China announced in August 2010 its plans to invest $13 billion (USD) in industrial, tourism, mining, and energy projects in Mozambique over the next five years according to report by The Economic Times.

44. Malawi is becoming economically independent and ending famine simultaneously. In 2006, as a response to disastrously low agricultural harvests, Malawi began a program of fertilizer subsidies that were aimed at reinvigorating crop production. As of 2010, the program has measurably improved Malawis agriculture, making Malawi a net exporter of food to nearby countries. (See: article in NY Times) 45. Madagascar is the ultimate blend of African, Arab, Asian, and European industriousness; its unique location allows it to protect investors of diverse backgrounds with similar interests. Madagascar has signed foreign Investment Promotion and Protection Agreements with several countries such as Canada, Mauritius, France, and Germany. These agreements provide a framework of legally binding rights and obligations. 46. Sierra Leone is committed to settling commercial disputes fast. In December 2010, the Sierra Leone Judiciary, under the leadership of Chief Justice Umu Hawa Tejan Jalloh, commissioned the Fast Track Commercial Court. 47. Gambia is investing in itself. As part of Gambias Vision 2020, the goal is to become a middle income country and ensure that at least $10 billion (USD) will be invested in economic development by 2020. 48. Mali is educating itself. Gross enrollment in primary education was an estimated 84% in 2009 according to Africaneconomicoutlook.org 49. Senegal, like a group of other African nations, encourages arbitration over costly litigation. According to the US Dept. of State, Senegal and the US share a Bilateral Investment Treaty for international arbitration. (U.S. companies entering the Senegalese market should ensure that their contracts with third parties make a provision for binding international arbitration in case of a dispute). The treaty also provides for Most Favored Nation treatment for investors, internationally recognized standards of compensation in the event of expropriation, free transfer of capital and profits, and procedures for dispute settlement, including international arbitration. Senegal has signed similar agreements for protection of investment with France, Switzerland, Denmark, Finland, Spain, Italy, the Netherlands, South Korea, Romania, Japan, Australia, China, Iran, Morocco, and Sudan. Senegal has concluded tax treaties with France, Mali, and WAEMU member states. 50. Investments in Zimbabwe can be socially innovative. Instead of waiting to see whether the nation gets back on its feet, investors can take advantage of readily available investment opportunities that are socially responsible. Investments can do the heavy lifting when political will tires. Let your investment do your talking for you. As an illustration,Enterprise Zimbabwe (EZ) is a non-profit group that promotes entrepreneurship by connecting small and medium enterprises to philanthropic donations. EZ was set up by Billionaire Richard Branson, Virgin Unite, Humanity

United, and the Nduna Foundation; and it was launched at the Clinton Global Initiative 2010 Annual Meeting. Behold socially responsible investment funds! 51. Sudan, Africas largest country, has sent an open invite to brave investors.Following the successful independence referendum for Southern Sudan in early 2011, the Undersecretary in the Ministry of Wildlife Conservation and Tourism in Southern Sudan, Dr. Daniel Wani, is seeking investors in the aviation, hospitality, and safari sectors, and also encouraging private-public partnerships in the wildlife sector. 52. Invest in lives help Africa grow; help the economically deprived in Africa.Economic deprivation in the continent of Africa negatively impacts global economic security. According to Ryan Shen-Hoover of Africanbusinesssource.com, heres how some of the dots connect: Each dollar invested in an African stock helps to build the liquidity of the exchange on which it trades. Rising liquidity lowers risk. Lower risk attracts additional investment to the exchange. Greater investment on the exchange lowers the cost of capital for listed companies. A lower cost of capital leads to increased growth, food production, and job creation.