Accessing the African Stock Market
The continent of Africa represents the second largest land mass in the world and is home to roughly 15 percent of Earth’s inhabitants. The continent is well known for its wealth of natural resources, like minerals and petroleum. Often overlooked is the human resource, an evolving source of educated and willing to work labor pool that is the back bone of a rapidly expanding consumer class. In fact, between now and 2050, Africa is expected to account for about half of the world’s population growth, which translates to more than a billion new consumers in the African market.
The emerging economies of these African nations require inflows of capital to foster development of industries that span financial services, industrial and construction, education, healthcare, power generation, communications, sanitation and clean water production. These industries generate goods and services for their host countries as well as for export and help sustain Africa’s growing labor force.
During his recent remarks to the African Growth and Opportunity Act (AGOA) Forum, Deputy Secretary of State John Sullivan noted Africa’s importance as a major market, adding that “increased trade and investment are key to creating jobs and generating resources that strengthen security and democracy.” The Act, which became effective in 2000, aims to “expand U.S. trade with Sub-Saharan Africa, promote inclusive development and economic growth, foster a higher-level dialogue in trade and investment-related issues, encourage economic integration, and facilitate Sub-Saharan Africa’s integration into the global economy.”
As a Houston-based registered investment adviser, FCA Corp has more than two decades of experience in Africa. FCA Corp established the Africa Fund with the investment objective to provide long-term capital appreciation and current income by investing in various African countries’ financial markets and economies through their stock markets. The Africa Fund has emphasized investments in the Sub-Saharan countries of Africa, although the Africa Fund may invest in securities of issuers located in any country in Africa. FCA Corp believes the Africa Fund provides investors the opportunity to diversify their portfolios while making an impact on an emerging market.
Regardless of your strategy or purpose, those investing in the continent of Africa are doing something good, while seeking an opportunity to increase wealth. An influx of funds allocated toward an emerging market has the potential to increase jobs, grow the middle class, and boost the economy since workers who earn more tend to spend more.
Learn more about the Africa Fund.