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.

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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.

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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?

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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

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3 Frontier Africa Funds for South African Investors

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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.

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11 Africa-Focused Mutual Funds and ETFs

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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.

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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.

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3 Tax Tips for Africa Investors

Photo by John Morgan

When tax time rolls around, it’s important to remember that the long arm of the IRS reaches all the way to Africa. In this guest post, Samuel Guinen and the Ellsworth Law Group walk us through some tax implications of African investments.

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Cautious Optimism: Political Risk Insurance In Africa

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While the African political scene is maturing rapidly, a coup in Mali, an upsurge in violence in Cote d’Ivoire, and bloodshed at a South African platinum mine have reminded the investment community that the continent can still be a volatile place.

Alkan Shenyuz is a Managing Director for Veventis, a political risk insurance services firm focused on providing risk management to private equity investors and large-scale project developers in emerging markets.

Here he explains the concept of political risk and how Africa investors can take it into account when putting their money to work on the continent.

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Your Portfolio’s Better Off Without African Mining Stocks

Photo by Liane Greeff

In the wake of the violence at South Africa’s Marikana platinum mine. Africa investors may be uncomfortable holding mining industry shares in their portfolios.

Recent market performance suggests that those who avoid investing in the industry are, on average, further ahead than those who do.

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