2. www.afribiz.info
Many African countries have shown robustness against the world financial and economic crisis, because
of their low financial inclusion into the world financial system. What once had been considered a curse is
now seen as a blessing.
The growth rates in various African countries are very different. South Africa, which has recorded the
longest upswing in its history, had growth rates of about 5%. The oil rich country of Angola had growth
rates of around 20 % in three consecutive years.
On the other extreme, Zimbabwe’s national economy has contracted by 70 % over the last decade. This
country has hit rock bottom and might perform very well in the coming years. However, we should have in
mind that countries like Zimbabwe and Ethiopia are starting from a low economic base.
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3. www.afribiz.info
The performance of African stock markets in 2009 was ranging from + 85 % to – 52 %. Ghana and
Nigeria were the worst performing stock markets in 2009. These markets have huge upside potential.
Some stocks are incredibly cheap, with price earnings valuations well below 5.
The situation of the Nigerian Stock Exchange All Share Index is very interesting. It looks like the market
completed a major double bottom and is now rising. A down trend line has been broken as well. In
January alone, Nigerian stocks gained more than 10%.
Smart portfolio investors should not primarily focus on the major stock exchanges of South Africa and
Egypt, and the commodity stocks that are traded in Canada, Australia and the UK. Instead, they might
consider it better to invest into the “real Africa”. Markets like Nigeria, Zimbabwe and Kenya might offer
superior returns to bold investors.
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