Excluded from country-grouping acronyms like BRIC and MINT, Africa is finally starting to attract some investor attention as an opportunity for consumer products and services. While Africa remains the world’s poorest continent, its middle class is growing at neck-breaking speeds. Additionally, oil companies are flocking to benefit from Africa’s untapped energy sources.
Africa has the fastest-growing middle class in the world, and with that consumer volume comes opportunity for companies to sell. So far, the most predominant idea for market expansion into Africa is telecommunications. Given the harsh physical and geopolitical environment in Africa, selling mobile phones to this blossoming middle class makes the most sense. Provider companies, such as South Africa’s MTN Group (MTNOY), are Africa stocks to buy as they are direct routes to reach Africa’s growing middle class.
For energy investors, African nations eager to create business from their natural resources could be a very good thing for years to come. Specifically, oil and gas companies like Tullow Oil (TUWOY) and Cobalt Energy (CIE) know Africa has great potential for new facilities and exporting opportunities.
Related Video: Big opportunities in Africa Stocks
