Africa’s quickly recovering economy has attracted investors from China and India, and Africa related exchange traded funds (ETFs) have also shown decent gains. This year’s World Economic Forum in Africa will allow political leaders and businessmen to take a look at Africa and the opportunities the continent may offer.

The financial crisis changed tourist spending in Africa as customers had less to spend on novelty items and focused on basic necessities like food and shelter, reports Andrew Walker for MarketPlace. Now, Africa is showing great improvements in its economy and the World Economic Forum is meeting to discuss how to take advantage of the recovery. Business leaders are thrilled by the opportunities that a recovery could bring to Africa. [Africa ETFs: 5 Plays for a Growing Economy.]

Bankers make up the largest group of delegates, looking to profit from Africa’s economy, which is expanding at double the rate of developed nations, report Nasreen Seria and Renee Bonorchis for BusinessWeek. The International Monetary Fund (IMF) projects that the sub-Saharan Africa’s economy will expand 4.7% this year, double 2009’s rate. Commodity exporting countries will likely lead the growth.

Mike Brown, Chief Executive Officer of Johannesburg-based Nedbank Group Ltd, says the conference may open more “deal-flow and investment opportunities in Africa.” Industrial powers like China has looked to Africa’s supply of raw materials and India has bought land to feed its growing population.

Still, Africa is still weighed down by poverty, political instability, weak infrastructure and corruption, so invest with caution and have a stop-loss at the ready.

For more information on Africa, visit our Africa category.

  • Market Vectors Africa ETF (NYSEArca: AFK)
  • iShares MSCI South Africa Index Fund (NYSEArca: EZA)
  • SPDR S&P Emerging Middle East & Africa (NYSEArca: GAF)
  • PowerShares MENA Frontier Countries Portfolio (NYSEArca: PMNA)
  • Market Vectors Egypt Index (NYSEArca: EGPT)
  • iShares MSCI South Africa Index Fund (NYSEArca: EZA)

Max Chen contributed to this article.

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.