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Why the big players are racing into Africa and how you can profit

by , 21 February 2014

For the last decade, the darlings of the investment world have been the emerging markets. These are the world's big markets like China, India and Brazil. But strangely, the African market has been left out.

Some analysts say it's because it takes too much money, time, patience… well, too much everything to make business work in Africa.

But times are changing… All of a sudden, the world's big investment houses are looking for another option. And they've found it… Africa is now the focus of growth. And the big institutions around the world are scrambling to get in.

This race to stake a claim in African business will create some great opportunities. And if you know where to look, you could profit handsomely.
The race is on… Make sure you don’t get left behind!

Like I mentioned before, in the past, all the attention has been given to the other emerging markets. But with growth worries in China and a global tightening of monetary policy, growth will be harder to find.

But one continent can’t help but grow…

Africa has more than 1.1 billion people. It has more than 60% of the world’s unused arable land. It has the lion’s share of most of the resources you can think of. Simply put, Africa has everything it, and the rest of the world, needs for growth.

And now that the rest of the world isn’t distracted by the emerging Asian economies or financial crashes, it’s seeing the real potential.

We’ve already seen global giants like Wal-Mart and Barclays make moves into Africa. 

And now even the world’s third largest bank, Citibank believes Africa will be where the company’s next burst of growth comes from.
Citibank stated that with more and more businesses entering and profiting in Africa, there will be a huge amount of mergers and acquisitions. And that means this is a region the company needs to get involved in. 

So how can you profit from the race for Africa as a trader?

The answer to this becomes clear when you look at how these big companies enter the African market. They don’t start from scratch. Instead, they look for successful companies that are growing in Africa, and they try to buy them before they get too big.

This means there are two ways for you to profit.

First up, you can look for companies that are likely takeover targets. And by buying into these companies early, you’ll see their share prices soar when the big players make a move to buy them out. 

But for my money, I prefer the second method…
Own companies buying great assets and markets to unlock real African profits

As companies buy into Africa, they tap into new markets and new assets. And if the company plays it smart, it can make you a fortune with its expansion.

A great example of this is Famous Brands.

This fast food giant of South Africa is making fast moves into Africa. In its most recent move, it secured a stake in Nigeria’s (Africa’s most populated country) rapidly growing market by buying the Mr Big restaurant chain.

This move instantly grew Famous Brands business and it won’t be long before you see African profits rolling into this company. That makes now a great time to get into this company.

So make sure you don’t miss out on trading opportunities like this. Make sure you’re not left behind.

And if you want to see what other short-term opportunities I’ve uncovered, make sure you check out my Capital Wave Trader service today.

Until next time,

Here’s to staying ahead of the game.

Warren Jeffery

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Why the big players are racing into Africa and how you can profit
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