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| African Patterns Photo by Eva Blue on Unsplash |
Carmine Fusco is head of CLM Global Enterprises, LLC, an investment company focused on global emerging markets. As head of this company, Carmine Fusco assists clients with finding opportunities for investing in emerging markets (in addition to other financial services). As markets in Asia mature, investors are looking toward emerging markets in African countries. There are challenges to investing in the various markets in Africa (including political instability and regime change), but investors do have options.
To begin with, the continent is split into three categories, by region. Northern Africa’s resources are comprised of oil assets, and the continent’s mining industry makes up much of South Africa. Sub-Saharan Africa is comprised of lesser developed economies, and is inaccessible to many investors.
Those who are not knowledgeable about investing in the continent or who are risk wary can still invest in two ways. For the novice investor, investing in African emerging markets can be done either through exchange-traded funds (ETFs) or mutual funds. Both funds have built-in diversification and are more cost-effective than building a portfolio through the American Depositary Receipts (ADR) or trading on foreign stock exchanges.
To begin with, the continent is split into three categories, by region. Northern Africa’s resources are comprised of oil assets, and the continent’s mining industry makes up much of South Africa. Sub-Saharan Africa is comprised of lesser developed economies, and is inaccessible to many investors.
Those who are not knowledgeable about investing in the continent or who are risk wary can still invest in two ways. For the novice investor, investing in African emerging markets can be done either through exchange-traded funds (ETFs) or mutual funds. Both funds have built-in diversification and are more cost-effective than building a portfolio through the American Depositary Receipts (ADR) or trading on foreign stock exchanges.
