Investing in Africa

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ph4t

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Article in FTfm yesterday about investing in Africa:

[broken link removed]

What would be the pros and cons of investing in Africa?
 
First that comes to mind is political volitility..... Tullow and Heritage Oil have been affected last week by tensions betw Uganda and the Congo. (Someone was shot).
Thats a starting point anyway. Wikipedia is great for investigating climates.
 
The two main pros seem to be:
  1. "Africa's fringe position within the global economy contributes to its pull. Outside South Africa, the correlation between African equity markets and other regions of the world is low, offering opportunities to reduce portfolio risk at a time of global volatility."
  2. "Africa is in the middle of a structural rather than cyclical recovery."
Do people agree with these points?
 
Tullow and Heritage Oil have been affected last week by tensions betw Uganda and the Congo. (Someone was shot).


Someone? I would have thought that in that part of the world a number of people would be shot/murdered every week. Its a very volotile part of the world..I know because I lived there for a while.....
 
The State of Africa: A History of Fifty Years of Independence
by Martin Meredith.

This book, in my opinion, should form part of your research.
 
Lauren said:
Tullow and Heritage Oil have been affected last week by tensions betw Uganda and the Congo. (Someone was shot).


Someone? I would have thought that in that part of the world a number of people would be shot/murdered every week. Its a very volotile part of the world..I know because I lived there for a while.....
Click to expand...

But that's my point? the instability of political climates would affect the stability of business in the region. Incidentally '[FONT=MS Sans Serif, Arial][FONT=MS Sans Serif,Arial]a member of the sub-contract seismic crew was killed' (Heritage).[/FONT][/FONT]
 
on the con side we have

corruption
instability
currency risk
political risk
regulatory risk
to name but a few
 
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