Africa should be in your 2015 portfolio, including gold

[Contributed article] Africa is currently the second most-attractive investment behind the U.S. for a number of reasons. Seven countries – Ethiopia, Tanzania, Rwanda, Chad, Mozambique, South Sudan and Sierra Leone – have forecast growth rates over 7% a year for 2014-2016, according to the World Bank.

These are the 3 major drivers of Africa’s economic growth.

Rich in natural resources

Africa is very rich in natural gas, minerals, food and oil, and has some giant water resources. Its land mass is bigger than the U.S., India, China, and Europe combined. While oil is the major driver of Africa’s economy, other industries such as mining and technology are thriving and renewable sources of energy are being built throughout the region.

Expanding economy

Many of the economies are among the fastest growing in the world. In addition, many countries have lower debt to GDP levels than most developed countries. Yahoo! Finance reports that UK has a debt level of 77% of GDP compared to 16% in Nigeria.

Thanks to Africa’s young demographic, a lot of international companies are currently investing in the region. Because of its thriving economy, the middle class are growing, giving people more purchasing powers to keep Africa’s economy running.

Africa’s gold-mining industry

The gold-mining industry is huge in Africa. One country, South Africa, is the world’s 6th gold producer as of 2014, according to Investment site BullionVault.

Gold-mining output is declining all over the world. However, precious metal experts are confident that there are still many unmined gold resources in Africa. To take only one country from the aforementioned huge land mass, Nigeria still has a lot of underdeveloped land. With promising technology that makes it easier for miners to extract more gold from Earth, Africa can become the world’s number-one producer again in the future. Two of the deepest gold mines can be found in South Africa, including the TauTona mine in Carletonville and East Rand Mine in Boksburg. Gold demand is huge in China, which bodes well for Africa’s mining industry

Africa’s soaring growth seems set to continue for many years to come, and there are many good reasons why investors should add the region to their portfolio.

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