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Investing in Africa

  • 24-01-2021 12:02am
    #1
    Registered Users, Registered Users 2 Posts: 20


    Wondering if anyone here has ever made any investments in Africa, thinking of allocating very small % and interested if any experience with funds/investment trusts focused on regions/individual countries?


Comments

  • Registered Users, Registered Users 2 Posts: 2,251 ✭✭✭massdebater


    I'm not familiar with any geared towards just africa. Any "emerging market" etf/trust will probably have some exposure to south africa (3%ish) but not sure about the rest. Jumia Technologies (JMIA) is an african e-commerce company that's been doing well, one of my top holdings now after the recent run up. It's my only direct exposure to Africa aside from the small emerging market allocation.


  • Registered Users, Registered Users 2 Posts: 84,707 ✭✭✭✭Atlantic Dawn
    M


    I'd be inclined to go the ETF route rather than invest in a specific company in the region, far too much instability.


  • Registered Users, Registered Users 2 Posts: 18,379 ✭✭✭✭namloc1980


    iShares have a South African ETF "SRSA" and there is also a Lyxor Pan Africa UCITS ETF "LGQM". The funds are small and are quite volatile/unstable so should really be a very small part of a balanced portfolio.

    https://www.justetf.com/en/etf-profile.html?query=Africa&groupField=index&from=search&isin=LU1287022708#overview


  • Registered Users, Registered Users 2 Posts: 20 Green Penguin


    Thanks yeah pretty few options alright & as you say are very small in terms of value.
    I see there is a JP Morgan fund out there as well so might have a look at that too along with the ETF options.


  • Closed Accounts Posts: 204 ✭✭Chuckie_Egg


    I think investing in emerging markets will give you more or less the same returns. Unless you have a specific country that you are interested in, at that stage you'd have to be doing a lot of research and it would be still quite risky and many unknowns.
    Another option is invest in commodities like Aluminium and Copper. They tend to rise and fall at the same rate as the emerging markets


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