Category Archives: Plays on Africa for Your Investment Portfolio

DM in EM: Developed Markets in Emerging Markets, and What it Means for Africa

tata motors Some financial analysts were advocating a year or two ago that investors buy developed markets’ stocks, like those on the New York, London and Paris exchanges, in order to profit from emerging markets’ growth.  This is called “EM in DM”.  The idea is that you would identify good developed markets’ stocks to invest in that have a significant amount of business in emerging markets countries like South Africa, or even some frontier markets countries like Nigeria and Kenya.

But now, many analysts are advocating “DM in EM”, the thought process being that many of the emerging markets companies’ stocks are going to increase in the coming months or years; particularly those emerging markets companies that have a significant amount of business in developing countries and Africa.  Companies like these would be Tata Motors (TTM), an India-based company that owns the brands Range Rover and Jaguar, as well as other automobile models and trucks .  They are doing well in the developed countries, and business is growing in countries like Zambia and South Africa.

Also, Lenovo (LNVGY), the computer firm, which is a Chinese company, is in many developed markets, and is beginning to expand into Africa, with an eye on the smartphone market.

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! 

 

A Play on Africa for Your Investment Portfolio: Domino’s Pizza

Domino's corporate logo   It has been reported that Taste Holdings, a South African restaurant company, has announced a 30-year agreement to market the Domino’s brand in Southern Africa.  This includes Swaziland, Lesotho, Mozambique, Zimbabwe, Botswana, Namibia and potentially Zambia and Malawi – oh, and South Africa, of course.

Domino’s is already doing quite well, with 21.9% EPS (earnings per share) growth in the fourth quarter of 2013, including strong, robust international growth, and with a 25% increase in its dividend, it might be a stock well worth examining.

The company opened its first stores in Nigeria in 2012, that country being potentially a huge market for its product, and with the middle class growing in many countries on the continent, the potential growth for much of Africa is there.

Are you investing in Africa, where the “smart money” is going? We here at Africa Investment Report will continue to “do our homework”  and look for “practical” opportunities for you to invest in Africa.  So what are you waiting for? Sign up in the box to the right for updates, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”.

A Play on Africa for Your Investment Portfolio: The Lafarge/Holcim Merger

Lafarge Holcim logos

This is the beginning of a series that will appear from time-to-time, A Play on Africa for Your Investment Portfolio, where companies that are based outside of Africa, yet have significant or growing business there, will be spotlighted, thinking about and analyzing them as possible investment opportunities.

The merger of the two largest cement companies in the world, Lafarge and Holcim, could cement…uh, reap, big benefits in Africa, and for those investing in Africa.

Many countries in Africa are growing very fast. Nigeria recently announced that they have rebased their GDP, and it is now larger than South Africa’s.  But they still need lots of infrastructure, in the form of, but not limited to, highways and roads, bridges, and buildings. It takes cement for a lot of these to be built, and that’s where Lafarge and Holcim hope to come in.

Lafarge currently does 27% of their business in Africa, and is already well-established in Nigeria, while Holcim currently does 4% of theirs on the continent.

The merger still has considerable regulatory hurdles to surmount, but most seem to think that it will happen, after shedding some of their assets.

We are in the process of providing our subscribers a FREE report called “The Cement Industry in Africa”. Sign up in the box to the right NOW for this future report and for other updates, and as a gift for doing so, get our FREE report NOW: “How to Profit From Africa’s Growth Without Leaving Home”.