South Africa, "the final frontier," can be accessed by U.S. investors only through the iShares MSCI South Africa Index (EZA) exchange traded fund (ETF). South Africa has the largest economy on the continent of Africa, and lately many investors have shown interest.
Trang Ho for Investor’s Business Daily says the country holds 8% of the world’s oil reserves, glitters with diamonds and overflows agricultural exports. The net inflow of direct foreign investment into South Africa rose to $6.3 billion in 2005, and the GDP rose 4.9% during the same year.
EZA has 49 holdings with oil and chemicals producer Sasol (SSL) as the largest at 10.3% of assets. Banking and telecom are the next largest. Africa’s population and per capita income are expected to grow through 2015 and could be the fastest growing in the world. EZA, like many of the markets, corrected last week after reaching a new high.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.