Tag Archives: investing in Africa

Rezidor CEO Wants Hotels and Airlines to Cooperate Better Due to Africa Topping Growth in the World

carlson_rezidor_itb2014   Rezidor’s CEO, Wolfgang M. Neumann, would like the hotel industry and the airlines to cooperate better:

“As the CEO of one of the world’s leading hotel chains, he has welcomed the launch of AviaDev Africa – the inaugural conference to determine future air connectivity – and called for even closer cooperation between the hotel and airline industries.”

And he acknowledges Africa’s tremendous growth (Rezidor also has hotels in Europe, Eastern Europe, and other parts of the world):

“Neumann said that Rezidor has seen a surge in growth in Africa ‘more than anywhere else in the world,'”

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!

 

“Rezidor CEO calls for closer operation between hotels and airlines”: http://www.eturbonews.com/74442/rezidor-ceo-calls-closer-cooperation-between-hotels-and-airlines

African Agriculture On the Rise With Zambeef, Among Others

woman-in-agriculture-in-africa   Zambeef (ZAM|LSE) is a company based in Zambia but listed on the London Stock Exchange, and poised to be a key player in the growth of agriculture in Africa, according to companies like VSA Capital:

“‘The potential for Africa to feed itself and in the longer-term help feed the world through the development of its agriculture sector is well known,’said Ed Hugo, at VSA.”

Some believe the stock has the potential for promising growth:

“‘We believe the stock should increase further from these levels,’ VSA said.”

In fact, some are bullish on London-listed African agriculture companies:

“VSA was bullish on prospects for London-listed African agriculture equities in general, at least compared to those listed locally.”

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

“African agriculture stocks a better buy in London than Lusaka”: http://www.agrimoney.com/news/african-agriculture-stocks-a-better-buy-in-london-than-lusaka–9896.html

 

Standard Chartered Bank in New Drive to Expand in Africa

Gambia_Standard_Chartered_Bank_0001   Standard Chartered Bank (STAN|LSE; SCBFF|OTC MKT), which is based in the U.K. (as opposed to Standard Bank, which is headquartered in South Africa), has a new drive to expand in Africa.

“Contributing about 10 per cent of the Standard Chartered Group profitability, the African business supports over 1 million retail customers in Africa and over 25,000 commercial, corporate and institutional clients. The campaign has been launched barely four months since the Standard Chartered Group Chairman Sir John Peace visited Kenya during which he reiterated the Bank’s commitment to continue trading in Africa. Standard Chartered operates across in 38 African economies, 16 on a full-presence and 22 on a transactional basis.”

Hmm…This may be worth looking into…

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“StanChart in new drive to grow market share in Africa”: http://www.standardmedia.co.ke/business/article/2000214048/stanchart-in-new-drive-to-grow-market-share-in-africa

 

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

Shoprite Growing in Other African Countries

shoprite africa  Shoprite (SRGHY|OTC MARKETS), South Africa’s largest food retailer, and in fact Africa’s largest food retailer, has beaten estimates and sales are rising:

“Sales gained 12 percent on a 52-week basis, driven by a 29 percent increase outside South Africa. The rise elsewhere on the continent was achieved despite weaker local currencies relative to the U.S. dollar and the negative effect of depressed commodity prices, while growth in West African countries has been stifled by a lower oil price and a shortage of foreign currency.”

“Shoprite opened 22 new supermarkets outside South Africa during the year, mostly in Angola, Zambia and Nigeria. Sales growth was led by Angola, where the company said it’s not restricted by a severe shortage of foreign exchange in the country and is able to restock its 29 supermarkets on an ‘almost continuous basis.'”

This is one of those South African stocks that could prove to be a great play on the rest of Africa.

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!

“Africa’s Biggest Food Retailer Beats Estimates as Sales Rise”: http://www.bloomberg.com/news/articles/2016-08-23/shoprite-full-year-profit-beats-estimates-on-africa-sales-growth

 

 

 

Why Emerging Market Stocks Like South Africa (and Nigeria) Could Rise

nigerian stock exchange building   The financial institution BlackRock is saying that emerging markets stocks can rise (even further).

“Global chief investment Strategist Richard Turnill explains 3 likely outcomes that motivated BlackRock to upgrade emerging market equities to overweight:

  1. Global growth expectations pick up and interest rates stay low.
  2. Federal Reserve officials appear split on policy direction. LIBOR hit seven-year highs ahead of U.S. money market reforms.
  3. Fed Chair Janet Yellen may shed light on future policy moves in a speech [Friday] at the central bank’s annual Jackson Hole meeting.”

“EM equities are trading at a 24% discount to global developed markets on forward earnings multiples. Fundamentals could further improve, we believe, as EM companies focus on controlling expenses and targeting profits over market share gains.”

“Within EM equities we prefer countries showing economic improvements or having clear reform catalysts, including India and ASEAN countries.”

With the devaluation of the naira and other factors, Nigeria could be moving in this direction, and so could South Africa.

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!

“3 Reasons Emerging Market Stocks Can Rise: BlackRock”: http://blogs.barrons.com/emergingmarketsdaily/2016/08/22/3-reasons-emerging-market-stocks-can-rise-blackrock/

Mining Company Anglo-American May Be Pressured to Create a Separate South African Company

anglo-american-logo   South Africa, through their own Public Investment Corp. (PIC), may want to break up Anglo-American (NGLOY|OTC MARKETS; AAUKF|OTC MARKETS), a large mining conglomerate, in order to create a more nationally-oriented (and controlled?) mining company:

“London and Johannesburg-listed Anglo American has been attempting to sell many of its operations worldwide in recent months, jettisoning coal and iron ore to concentrate on three key products, copper, the De Beers diamond business and platinum.”

“South Africa’s ruling African National Congress party is also looking for ways to boost the economy and gain public support following recent electoral setbacks… A source close to the situation pointed out that the South African government has often aired the view that it would like to see a nationally owned mining company emerge “at some point…”

Mining companies have been hit hard lately by the commodities “bust”, but there may be some investment “values” out there worth examining.

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!

“South Africa Wants Break-up of British Mining Company Anglo American”: https://www.thestreet.com/story/13675053/1/south-africa-wants-break-up-of-british-mining-company-anglo-american.html

Standard Bank is Committed to Francophone Africa (Third in a Series)

standard bank   As we reported a couple of years ago, Standard Bank has as part of their growth strategy a commitment to move into francophone Africa. This continues to be the case, including their foray into Cote d’Ivoire:

” The pan-African lender plans to use the market as a gateway to expand across the francophone West Africa region.”

“The Standard Bank group, now in 20 African markets, aims to open its first branch in Abidjan by the end of the first quarter of 2017. According to Boyer, around 60% of the market share is held by five banks and there is potential for Standard Bank to introduce retail banking operations. However, he added the strategy is to grow slowly.”

“While South African companies have grown their African footprint across a number of English-speaking markets, they have typically been slower to expand to French-speaking countries – a result of challenges posed by the language barrier.”

But as we can see, this reluctance to go into francophone (and even lusophone) Africa,  is changing, and the prospects for growth are there for these South African companies, including the banks, and for you as an investor.

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 Standard Bank is expanding to francophone West Africa”: http://www.howwemadeitinafrica.com/standard-bank-expanding-francophone-west-africa/55342/

Bank Expert Sees South African Banks as Solid (Second in a Series)

capitec bank   In this second post in our series concerning banking in Africa, let’s focus on South African banks.  This could be a great play on the growth of the rest of Africa, because most South African banks have as a large part of their strategy to expand in sub-Saharan and/or the rest of Africa, in commercial and/or retail banking.

We’ve discussed banking in Africa previously, for example here and here. While there are some analysts who believe that only one bank in South Africa is poised to do well, a bank ratings expert, headquartered in London, says that:

“Based on all of the banks we have rated so far, which are about 250 around the world, the South African banks as a whole are distinctly the best in the world. There is no two ways about it.”

Why?

I think it has to do with several things. First of all they score very well on the financial side of our ratings criteria – that’s stuff like capital, liquidity and all the financial ratios that are very important in assessing banks. But they also score very well on the so-called qualitative criteria, which is where we look at things like strategy, like culture, like living the brand promise. They’re actually extremely impressive banks – that’s taking the South Africa banks as a whole. We looked at the big five, including Capitec.”

We still need to do our “homework”.  They looked at the “big five” (Capitec (CPI|JSE), Barclays Africa (BGA|JSE), FirstRand (FANDY|OTC MKTS.; FSR|JSE), Standard Bank (SGBLY|OTC MKTS.; SBK|JSE), and Nedbank (NED|JSE)), but, to reiterate, he said that “…South African banks as a whole are distinctly the best in the world.”

Africa Investment Report owns shares in iShares MSCI South Africa, which has holdings (owns shares) in Standard Bank and FirstRand.

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!

 

“Capitec, Barclays Africa and Atlas Mara: Thoughts From a Bank Ratings Expert”: http://www.howwemadeitinafrica.com/capitec-barclays-africa-atlas-mara-thoughts-bank-ratings-expert/55269/