An article in this past weekend’s Wall Street Journal, “Africa’s Richest Man Bets Big on Oil Refinery”, discussed Aliko Dangote, arguably Africa’s richest man, who plans to build the largest oil refinery in Nigeria, his home country.
One of the things that’s interesting about the article is that what he sees as reasons to invest should encourage us to invest by including Africa in our portfolio:
1. Look for stocks that bet on the growing middle class and their consumerism.The article says that Dangote’s investment in this new refinery “…is a bet that Africa’s economy will keep growing faster than the rest of the world, especially as a wave of consumerism sweeps the continent.”
2. Find stocks that might benefit from Africa’s appetite for oil. According to the article, Africa is predicted to become the largest oil consumer. Companies that are looking to not only drill in Africa, but also to refine and sell at the retail level (think gas stations and convenience stores with gas stations) would be possibilities for investment.
We here at Africa Investment Report will continue to look for opportunities for you to invest in Africa. Be sure to 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”.