Africa’s technological advancements have pushed it to the top spot of desirable markets to invest in. Many countries in the continent have transformed their economies over the last few decades, making them attractive markets for buying and selling stocks.
Taking a title previously belonging to China, Africa has become the major hub for economic growth – and this seems set to continue.
In the year 2000, China was only the seventh richest country in the world. Ten years later, it was the third most wealthy and now it sits comfortably in second place. Predicting this remarkable rise in investment viability could have made you a lot of money. Africa seems set to follow the path forged by China and exhibit similar growth over the coming decades.
The rich cultural history of the African continent, tied to a surplus of workers, more stability and better technology, is boosting Africa’s place on the world stage. This now-viable economy offers a great opportunity for buying and selling stocks.
Interested to discover the top five African stocks you should consider investing in today? Read our handy guide below.
Sasol Limited
Sasol Limited specialises in energy – specifically, generating low-carbon electricity. Like most of the richest companies in Africa, this one is based in the southernmost country – South Africa. The company provides thousands of jobs in America and elsewhere in the world, and reported an incredible revenue of $12.26bn in 2020. It’s the largest corporate taxpayer in the whole country, demonstrating its sheer strength in the market.
Sasol Limited sponsors multiple sports teams, including the South African women’s football team and men’s wheelchair basketball team. Sasol Limited is listed on the Johannesburg Stock Exchange, making it a great option for those looking to invest in JSE top 40.
Naspers
Naspers is a Cape Town-based company specializing in technological innovation. Its revenue is $22.1bn, making it a viable consideration for investment. It was founded in 1915 as a newspaper and magazine publishing company but has since expanded into many other sectors. 100 years after its founding, Naspers is heralded as one of the major success stories of African growth.
Naspers owns more than half of Prosus, as well as all of Africa’s largest publishing company and South Africa’s largest online retailer. This makes Naspers a major player in the world economy and one you should consider buying stocks in.
Prosus, the subsidiary company owned by Naspers, invests in lots of small tech startups, a strategy that has generated huge profits. The company enjoys yearly growth and there’s little sign that things will change anytime soon.
Sibanye Stillwater Limited
Africa has a lot of precious resources, including metals such as gold and copper. Mining these resources has helped to fast track growth on the continent, and companies capitalising on those resources often offer worthwhile investment opportunities.
Sibanye Stillwater Limited recently announced that production was up 6% year-on-year and its earnings exceeded $1bn. Its profits, growth and production advancements make it an enviable company in the market, with lots of interest from shareholders looking to make money from buying shares in it.
MTN Group Limited
Looking to invest in a mobile phone network business? Launched in 1994 with help from the South African government, MTN Group is a telecommunications company boasting nearly 20,000 employees and generating nearly $180bn in revenue. It’s the largest mobile network operator in the world and dominates the market in Africa. It’s the most widely used network in Nigeria, where it generates one in every three dollars.
You may recognise MTN Group’s logo, as they sponsor Manchester United Football Club and the South African rugby union team. With nearly 300 million subscribers, it’s easy to understand why this is an African stock worth investing in. Evidence points to continued growth, meaning stock value is due to thrive.
Standard Bank Group Limited
Standard Bank’s origins make it one of the oldest companies in Africa. It was established in London in 1862 by politician John Paterson, before commencing operations a year later in South Africa. The organisation employs nearly 55,000 people and has total assets worth $142.9bn.
Standard Bank offers financial services including mortgages, money lending, savings and current accounts. The bank’s parent company owns a range of subsidiaries including Liberty Holdings, and operates in Africa, Turkey, Jersey, Argentina and the United Kingdom. In Africa, it’s the largest bank and makes more money than all its competitors in the sector. It’s a worthwhile investment based on its consistent growth and exciting forecasts.
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