Category Archives: Plays on Africa for Your Investment Portfolio

Trump and Africa, and What It Could Mean for Investors

trumpMany are saying that the President-Elect of the United States, Donald J. Trump, may not care about Africa, but some are saying that may be a good thing.

“Despite all this, it’s worth remembering uncertainty isn’t all just about downside. Less trade with the US could force African countries to put more effort into developing stronger trade links with each other. Intra-Africa trade is still a small share of trade for many African countries. And young Africans dissuaded from moving to the US comes with one potential advantage: decades of brain drain can be stalled and Africa’s brightest can focus on problems at home.”

So there may be certain companies, particularly in South Africa, that could take advantage of intra-Africa trade.  Meanwhile, however, there is a lot of downward pressure on the rand, making many South African companies less attractive, at least in the short term.  There are going to be more opportunities, however, with U.S. and European companies that are strong plays on Africa.

Furthermore:

“The unpredictability of a Trump presidency will create new types of opportunities for Africa and Africans. We may not know what they are yet, but we won’t know if we’re not looking.”

 

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

 

“It might not be the end of the world if Africa drops off Donald Trump’s map”: http://qz.com/836048/donald-trump-doesnt-care-much-about-africa-that-may-be-a-good-thing/

Rezidor Cuts Costs in Europe, But Not in Africa!

carlson rezidor hotel group

 

 

 

Rezidor (REZT|STO) is cutting costs in Europe:

“Brussels-based Rezidor Hotel Group has unveiled as series of cost-cutting measures in an attempt to deal with what it says is still a fragile operating environment.”

But there is no cost-cutting being done in Africa!

“One area where Rezidor is hoping it can turn things around is in Africa where the company has big expansion plans.

It already operates around 8,200 rooms and has 7,500 rooms in the pipeline

‘We know there are some headwinds related to commodity prices or safety and security however we really believe in Africa as a growth market and are fully aware that this is a long-term play,’ said Neumann on a conference call with analysts.”

As we have said previously, Rezidor believes in African growth. Do you?

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

“Rezidor Cutting Costs to Cope With Tough European Environment”: https://skift.com/2016/10/25/rezidor-cutting-costs-to-cope-with-tough-european-environment/

 

 

 

Why South Africa Could Be a Country for You to Buy Into For Your Portfolio

brics-logo   HSBC’s emerging market researchers and strategists recommend South Africa as one of the countries to buy into.

“Among the BRICS, the only country they rate overweight is Russia. They also have an overweight on Turkey, South Africa, the Philippines, Peru, Indonesia and Hungary.”

(Actually, South Africa is one of the BRICS – that’s what the “S” stands for!)

But they are overweight on South Africa, meaning that they think that buying stocks of companies in, or foreign stocks (U.S. and European, etc.) that are plays on, South Africa would be a better buy, relative to many other countries that are neutral or underweight.

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report and updates!

 

“8 Reasons to Buy Emerging Markets”: http://blogs.barrons.com/emergingmarketsdaily/2016/10/12/8-reasons-to-buy-emerging-markets/

 

Rezidor Heading Towards More Than 23,000 Rooms in Africa Alone!

radisson-blu-hotel   Carlson Rezidor, a company we continue to track and get excited about, is likely to achieve their goal of 23.000 rooms in Africa by 2020.

” Africa has always been close to our hearts. We were the early movers on the continent in 2000 when we established our dedicated business development base in Cape Town.”

“Today, Africa is our biggest growth market with a fully functional Area Support Office in Cape Town since 2016.”

And investing in this company does good things for the local population and for women.

“Expanding its footprint into Africa also means creating employment for the local population in each country, with an emphasis on developing women to leadership positions. “Many hotel jobs do not require tertiary education and present opportunities for locals to be trained and upskilled to fulfill particular roles…”

We found out that not only can you buy Rezidor on the Stockholm Stock Exchange (REZT.ST|STO); you can also buy it as an ADR in the U.S. (REZIF|OTC).

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report and updates!

 

“Carlson Rezidor on Track to achieve More than 23,000 Rooms in Africa”: http://www.hospitalitynet.org/news/4078640.html

The Emerging Markets’ Rise Can Keep Going

johannesburg central business district   The emerging markets have had a history of still rising for quite some time after a surge, and some think that the conditions for a long-lasting one are even more favorable than before:

“Calamos is “more positive” on emerging markets than it has been “for some time,” Speed tellsBarron’s, because earnings and business activity are improving, currencies and commodities are stabilizing, fragile countries’ external vulnerabilities have moderated, and the Fed is being deliberate in raising rates. Also, emerging market valuations remain attractive compared to developed markets’.”

Some managers recommend “plays” using multinationals in the developed markets, as we have been recommended previously:

“The managers like tech and consumer plays that benefit from an expanding emerging market middle class, and they also own developed market companies with emerging market exposure such as oil giant Royal Dutch Shell (RDSA).”

And they are adding a South African company to their portfolio:

“…South Africa miner AngloGold Ashanti (AU).”

Find out where we’re going with these Africa investment ideas and concepts by signing up for our free newsletter! Sign up in the box to the right, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”. So what are you waiting for?  Do it right now!

“Why the EM’s Rise Can Last”: http://www.barrons.com/articles/why-the-ems-rise-can-last-1471670364

 

Finding Trends in Africa Can Help You to Weather Volatility

ocean waves in Africa   Here at the Africa Investment Report, we always talk about investing for the long term; not the short term.  Investing is for the long term, and trading is for the short term.  This publication is focused on investing.

One of the things to be mindful of when investing for the long term is to find long-term trends that can sustain your investment through volatility from economic or political “influences”, for example:

“One way to address the short-term volatility associated with emerging markets is by investing alongside secular and demographic trends. These multi-year and multi-decade influences can provide long-term resilience in the face of volatility resulting from more temporary influences, such as quarterly fluctuations in gross domestic product or election results. Trends related to infrastructure and middle-class consumption in the emerging markets are two generally better known secular forces supporting emerging-market opportunities, but there are a number of lesser known but compelling trends that provide growth opportunities.

There are even multinational companies that are finding opportunities due to long-term trends in Africa:

“Evolving emerging-market demographics and consumer preferences provide long-term growth potential for companies all over the world. For example, both multinational and emerging-market domiciled companies are answering the growing demand for hospital procedures, pharmaceuticals, and cosmetic goods and services.”

Find out where we’re going with these Africa investment ideas and concepts by signing up for our free newsletter! Sign up in the box to the right, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”. So what are you waiting for?  Do it right now!

“Health and longevity trends show promise”: http://www.investmentnews.com/article/20160821/FREE/160819913/health-and-longevity-trends-show-promise

Is Growth Returning to South Africa?

pexels-photo

Though the local elections in South Africa could affect its growth, some think that South Africa and other emerging market countries, excluding China, are poised for growth:

“Excluding China, emerging markets should see a resurgence in growth next near of 0.9% he concludes, with a subset of countries — Argentina,Venezuela, Brazil, Russia, Hungary and South Africa — growing at 2.9% on average.”

Time to look at South African stocks, and those investing in South Africa (“plays”)?

“Is Emerging Market Growth About to Return?”: http://blogs.barrons.com/emergingmarketsdaily/2016/08/02/is-emerging-market-growth-about-to-return/

South African ETF Proving “Resilient”

Front view of punching fist on gray background, flag of South Africa

Front view of punching fist on gray background, flag of South Africa

South Africa is “bouncing back” from the Brexit “crisis”, despite what the naysayers were predicting.

“So much for Brexit’s impact on the global economy. With this week’s rally, the iShares MSCI Emerging Markets exchange-traded fund (EEM) is now up more than 6% for the year as the second quarter winds to a close.

BEST YTD%
Peru 46%
Brazil 41%
Colombia 24%
Russia 19%
Thailand 17%

South Africa has proved resilient, up 11% year to date.

 

“Emerging Markets’ Best and Worst Countries of 2016”: http://blogs.barrons.com/emergingmarketsdaily/2016/06/30/emerging-markets-best-worst-countries-of-2016/

France, Not China, is The Biggest Direct Investor in Africa

France_flag-lgMany people think that China, even though their economy is experiencing some rough spots, is the largest non-African investor in terms of direct investment. The truth is that France is the largest direct investor in Africa, as articles like this one have pointed out in the past.

What does this mean for the individual investor? It means that they could find more opportunities if they weren’t limited to learning only about anglophone (U.S., U.K. and Australian) companies that invest in Africa, for the most part.

Getting more information about French companies that invest in Africa could widen your scope and give you more opportunities.  That’s part of what we do at Africa Investment Report!

Orange Could Be A Great Stock to Buy and a Great Play on African Growth

orange Orange (ORAN), formerly France Telecom, was mentioned recently in Barron’s as possibly a good stock to purchase for the long term.  The company is on a cost-cutting crusade, and looks to significantly cut costs in the future.

“This may well be a stock worth looking into, both for its general growth prospects, and for its growth prospects in Africa.”

But what about the African growth prospects for Orange?  Orange is having very strong growth in the Middle East and Africa, and the telecommunications business is growing at a very healthy clip in these places.

Below is a map that denotes the countries where Orange has a strong presence. Notice on the map that Orange’s coverage is mostly in the francophone (French-speaking) countries. (Notice that they are not in South Africa, Nigeria nor Ghana, although they are in Kenya.)

Orange Operations in Africa: actual and proposed as of January 2013 Source: africantelecomsnews.com

Orange Operations in Africa: actual and proposed as of January 2013 – Source: africantelecomsnews.com

This may well be a stock worth looking into, both for its general growth prospects, and for its growth prospects in Africa.

Africa Investment Report covers not only the anglophone countries in Africa, but also the francophone and lusophone ones as well.  

Find out where we’re going with these Africa investment ideas and concepts by signing up for our free newsletter! Sign up in the box to the right, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”.