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Are U.S. Investors and Companies Listening? Africa is a Good Buy.

By Laura Davis | Thu Feb 17 2011

Several of the world's fastest growing markets are where? You guessed it: Africa. This factor along with a growing base of consumers with disposable income, improving infrastructure and a host of other factors (like incredible natural resources)have made the continent tantalizing for several American giants like Walmart. But Walmart's move to acquire Massmart in South Africa is being met with some opposition according to a recent article in The Economist. Only time will tell exactly what impact the retailer will have, but we can take one lesson: If Walmart thinks Africa is a good buy, perhaps the rest of us should listen.
China is another player we should be listening to. Like it or not, they've had it figured out for a long time. A recent article on included the following facts and figures on Africa/China trade:
  1. 1. 89 percent of exports from Africa to China in 2009 were oil, minerals and other raw materials.
  2. 2. The value of exports from Africa to China grew from $4.2bn in 2000 to $38bn in 2009.
  3. 3. Africa imports from China are about equal to exports and include footwear, furniture, lighting, textiles, electronic toys and pharmaceuticals.
Renew Capital is an Africa-focused impact investment firm that backs innovative companies with high-growth potential. Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact. For the latest on investing in Africa, subscribe and follow us at our social links below.

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