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Tuesday, December 29, 2009

African Investments Are Showing High Returns

By Jim Antonio

If you are looking to invest your money in a growing, vibrant market, you should really consider Africa. Many African countries are providing investors with a healthy return on their capital. Africa has been associated with corruption, poverty and despair, but in recent years it has proved that it can provide genuine opportunities for investors. African investments are most definitely on the rise.

Africa is made up of 53 countries, 50 of which are showing an impressive growth rate. Unlike present economic climates of the western world, most countries in Africa are enjoying a vibrant economy. New opportunities are being created all the time. A major advantage is that about half the population of Africa is below the age of 20 which creates a powerful work force.

The country of Morocco is showing itself as a leader in the real estate market. Situated in northern Africa, Morocco is close to Europe and the Middle East. Therefore its culture is tinged with a little of three different continents. With its stunning coastline and breathtaking natural beauty, it is not surprising that Morocco is attracting real estate investors from all over the globe.

Botswana has been successful in encouraging much foreign capital. Investors have ploughed lots of money into Botswana's wealthy industries such as coal mining, glass products, leather goods, and tourism. Countries that have invested strongly in Botswana are India, Portugal, the United Kingdom, Mauritius and China.

When it comes to foreign investment earnings in Africa, Kenya enjoys third position, after South Africa and Morocco. The Kenyan government introduced several policies to benefit foreign investors. These efforts have paid off and many investments have been made in Kenya's flourishing tourism industry as well as in its film industry. Kenya has a very stable government which is another encouraging factor.

Investment opportunities abound in South Africa. Previously shunned by the world due to its apartheid era, South Africa is now considered to be the richest country in Africa. One of the world's most respected icons and former president of South Africa, Nelson Mandela, played a major role in convincing the world to prosper from its many resources.

In Nigeria, the government is making great strides in attracting foreign investment. This country enjoys rich dividends earned as a result of the high oil price. Therefore investing in an oil company associated with the Nigerian oil industry would be a solid investment. Other options include investment or unit trusts.

Investors are focusing on Malawi as a country that is proving to have much potential. Known as 'the warm heart of Africa', Malawi has a flourishing farming industry and the government has realized that it has the resources to become a leading food producer. Malawi is blessed with plenty of sunshine and water, as well as fertile land.

Uganda has also joined the race to attract foreign income. With an economic climate that is improving steadily, the government has introduced infrastructures and policies that are bringing in foreign money. One major attraction is that Uganda offers investors complete ownership of their investments. With one or two exceptions, Uganda allows investments in all its economic activities. - 23218

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