Tag Archives: investing in Nigeria

Sub-Saharan African Growth Slumping? So Says World Bank

lion-1551759_960_720   The World Bank has cut their prediction for sub-Saharan Africa for 2016 to 1.6%.

“The disappointing rate of economic expansion is well below the global average of 2.3%, the World Bank said in its twice-annual “Africa’s Pulse” report.

Just in April, the World Bank publication had seen growth in sub-Saharan Africa reaching 3.2% this year, but the slide in the region’s two biggest economies, Nigeria and South Africa, as well as other oil and commodity exporters, has been steeper than anticipated.”

They don’t sound very confident about the future, either:

“The report saw the region growing by 2.9% next year—still below the 3% expansion rate of 2015—but warned that “the balance of risks… remains heavily tilted to the downside.”

This means that even that 2.9% growth projection for 2017 could be optimistic as low oil and commodity prices could persist.”

Okay, so we really have to look for the “bargains”!

And wasn’t it Warren Buffett who said, “Be fearful when others are greedy and greedy when others are fearful.”? Just sayin’…

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

 

“Sub-Saharan African Growth Slumps Says World Bank”: http://www.wsj.com/articles/sub-saharan-african-growth-slumps-says-world-bank-1475148609

 

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/

Time to Ring the Bell for Nigerian Stocks?

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The Hon. Yakubu Dogara, Speaker of the Nigerian House of Representatives, rang the closing bell for the Nigerian Stock Exchange (NSE) this past Friday. Leaders in the Nigerian legislature are pushing for reforms and innovations for the exchange.

“The Hon. Tajuddeen Yusuf (PDP, Kogi)-led House Committee on Capital Market and Institutions last month held a conference on the capital market and Nigeria’s economy in Abuja with a view to brainstorming on how to mainstream the market as a major driving force in repositioning the nation’s economy via initiatives that will enable ordinary Nigerians (to) key into opportunities available at the Exchange to increase their propensity for long term investment.”

This could be very positive for Nigerian stocks. There were other indications in a previous post that outlook for Nigerian stocks could improve.  We need to monitor NGE carefully.

“Dogara to Ring Closing Bell at Nigerian Stock Exchange” : http://thebossnewspapers.com/2016/07/08/dogara-to-ring-closing-bell-at-nigerian-stock-exchange/

Joe Biden and Others Think That Africa is a Country

Joe Biden Vice President of the United States Joe Biden has called Africa a country!  Is it any wonder that many don’t understand Africa and the investment potential that is there? Now it is reported that Nancy Pelosi, too made the same gaffe.

Is this unbelievable or what?  Biden is a past chairman and member of the Senate Foreign Relations Committee, and he has in his mind that Africa is a country????  And the president of the United States, that he serves under, had a father that was from a country in Africa, Kenya.

Those who educate themselves using this site and other resources are going to reap the benefits, while others who wallow in ignorance like these “leaders” will be left behind.

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”.

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”.