Question

Everything has it's up and down, I want to ask which kind of investment can average man venture into that can open door for it's better life. Some says investment is land is ok, building house and sell it or lease it out, investment in transportation. Please which investment is best for average man( not poor not rich) that can change its life to rich man.
I will appreciate it if someone can answer my question and even recommend the reliable investment to venture in, especially for someone from West Africa

Answer 1

Solution =

Over the past decades, Africa has explored great depths for its rise in economic growth and investment opportunities. While Africa offers great returns compared to most emerging market economies, it cannot be observed as a solitary performing body. The continent bears 54 distinct economies that are weighed with challenges and opportunities significant to their economic activities and operating environments; the two most crucial inputs to investment. These economies have continued to support their nations and the world at large with their invested natural produce resources, skills and labour.

1) ETFs and Mutual Funds -

The easiest way to invest in Africa is through exchange-traded funds (ETFs) and mutual funds. Not only are these funds traded on U.S. stock exchanges, but they also contain built-in diversification and cost far less than manually building a portfolio with American Depositary Receipts (ADRs) or foreign stocks that trade on foreign stock exchanges.

The most popular ETFs to invest in Africa include:

• Market Vectors Africa Index ETF (AFK)
• SPDR S&P Middle East & Africa ETF (GAF)
• MENA Frontier Countries Portfolio (PMNA)
• Middle East Dividend ETF (GULF)
• Frontier Markets ETF (FRN)

2) Vast Natural Resources -

The African continent is incredibly rich in natural resources. It has huge, untapped reserves of natural gas and oil (10% of the world’s reserves) and largely unexploited hydroelectric power. It is home to vast gold, platinum, uranium, iron ore, copper and diamond reserves. Currently, only 10% of Africa’s arable land is being cultivated, yet it holds around 60% of the world’s cultivable land. As such, Africa has become a magnet for foreign direct investment (FDI). So by giving land on lease for development of various industries will play major role for ones development.

3) Hotels -

Hotels are generally a solid investment option. They produce predictable incomes and are a departure from traditional real estate investments such as residential properties that are merely bought and sold.

In spite of the high costs associated with major investments in projects like hotels, there are still many reasons in favour of such investments. These include:

• There is still a strong demand for hotels in the Country. The industry has not reached its saturation point yet.
• There is a good balance of customers with a mix of wealthy Africans and foreign visitors depending heavily on hotels for comfortable stays.
• There is low seasonality in the sense that, the seasons do not really affect hotel patronage

4) Gold -

Gold can be bought in the physical form as jewellery. However, this form involves concerns about quality, safety and high costs.
Physical gold can also be bought as coins or bars from jewellers, banks and other avenues with hallmark for purity but still have concerns about safety.
Exchange Traded Fund is a low-cost way of owning gold on paper that can be bought and sold on the exchange when required and is subject to tax at redemption.
Sovereign Gold Bonds are issued by the government and are available for purchase during intervals when they open up every few months and are good for long-term gold investment and are tax-free on redemption.
Digital gold is a mode of investing in physical gold through online platforms. This physical gold is safely stored centrally which can be redeemed as physical gold or be can resold to the vendor.

So, out of the above options, it will be good to invest in stock market for longer duration by investing in direct equity , MFs , ETF. This option will help you to achieve predecided goal and also provides with option of systematic investment on monthly basis. Long term investment will provide good amount of money for education, business purposes.