Make this one move now says emerging markets expert, Manraaj Singh, and you could well double your money inside 12 months.
Imagine you’d invested in Russia just after the fall of communism...
Within months these visionaries turned into the world’s wealthiest as new business flooded in with billions of dollars worth of investment.
That’s exactly what one little-known merchant bank did back in the early 90’s...
And they’re about to do it again. Like to know where?
If you’re broker advised you to invest in Africa, many would say he’s mad.
But the fact is the continent is in the early stages of a massive boom... and a few shrewd investors will ride this wave all the way to the bank.
RenCap is one of them.
These were the smart chaps who set up a merchant bank in Russia after the fall of communism, when most of the big banks wouldn’t go anywhere near the country.
And they’ve made a mint from it. Now, they’ve spotted a similar opportunity in Africa.
One of RenCap’s top bankers, Andrew Cornthwaite, says "The situation is similar to our experience in Russia 15 years ago. There is a business opportunity here, and if you've seen the movie before, you're in a better position to capitalise..."
A $1 billion investment... and that’s just for starters!
RenCap isn’t the only outfit heading to the southern continent...
International investors are beating down the door to get into Africa because it’s producing some of the best returns they’ve gotten anywhere over the last few years.
Just look at the Finch Africa Fund. It’s already up by 11% this year. It was up by 43% last year and 25% the year before.
And African countries are taking full advantage of all the interest they’re getting...
International investors looking for higher-yielding assets right now are flocking to the region. Ghana and Gabon, sold their first global bonds last year and Uganda looks set to follow.
Uganda may soon raise as much as $1 billion through its first international bond issue. The country’s finance minister says they have held "exploratory talks" with at least two international banks to act as advisers.
Uganda’s economy is forecast to grow by about 7% over the next two years but there are still infrastructure bottlenecks. So, now they plan to raise funds to boost electricity generation and increase rail capacity.
But this $1 billion may just be the start... it won’t be long before the Chinese show up!
The Chinese government is drawing-up plans to support Chinese companies acquiring agricultural land in Africa to help feed its massive population.
Uganda looks like a prime candidate for a bit of Chinese investment to us. The country sits on fertile land and is Uganda, Africa's largest producer of Robusta coffee.
Coffee probably isn’t the first thing that comes to mind when you think of China, but demand for stuff is growing massively in the Middle Kingdom. Like their counterparts everywhere, China’s upwardly-mobile are demanding their divine right to Starbucks...or local knock-offs.
With Western bankers and the Chinese government both looking at Africa as the next big profit opportunity, the continent is in a sweet spot right now.
For how big an impact China’s entry could have, just look at what it’s doing in the Congo...
Africa’s emerging giant
China’s just struck a deal to invest $9 billion in building-up the Democratic Republic of Congo’s infrastructure in return to gaining access to a chunk of that country’s vast mineral wealth.
Last Friday, the Congolese government released full details of the deal.
The Congo is set to gain 3,300km of road and 3,000km of railway; and two hydro-electric dams. In addition, China will build hundreds of clinics, hospitals and schools. That’s going to have a dramatic impact on the country...
Congo is the size of Western Europe, but they’ve only got 5000 kilometres of tarred roads right now. Gaining access to the country’s mineral wealth and getting it out of the country has been a nightmare.
But the major routes that China is building run from the mineral-rich rich south of the country to its ports in the west and connect the north to the south.
So, you can understand why the Congolese are thrilled by this!
The county’s infrastructure minister, Pierre Lumbi, compared China’s investment to the Marshall Plan to reconstruct Europe after the Second World War. "This contract is the foundation on which the growth of our economy is going to be built," he declared.
Congo is still scarred by the civil war of the 1990’s. But all those new roads and railway lines should help consolidate reunification in the he country and bring down prices for basic goods.
I think that what’s happening in the Congo right now is quite simply one of the most exciting emerging opportunities around. What we’re seeing is the awakening of an African giant.
Here at Profit Hunter, we’re keeping a very close ear to the ground on what’s going on there...
The best way to invest in booming Africa!
And I believe we’ve found just the way in...
All it takes is one simple investment in a company that’s listed right here in the UK.
Like RenCap, this remarkable business knew that they had to get into the emerging markets of the future... so they did... and now these markets look about to make this company a lot of money.
They’ve been keeping it low key - working behind the scenes - doing deals that would pay off in the long term...
But one particular deal they’re hammering out as I write could make this tiny company a very big player, in a very profitable region.
Click here for all the details.
Regards,
Manraaj Singh
Editor Profit Hunter
