For
context, the total market cap of the Nairobi Stock Exchange was 1
trillion Kenyan Shillings (KES), which was roughly equal to $13 billion. Kenya’s GDP though, was $66
billion.
The Nigerian Stock Exchange is
targeting a market capitalization of $1 trillion dollars in 2016
(http://www.voiceofnigeria.org/Nigeria/NSE-market-capitalisation-to-hit-one-trillion-by-2016.html)
while its 2016 GDP is projected to be $400 billion. Currently, its market
capitalization is $74 billion while 2010 GDP was $378 billion.
The
market capitalization of the Johannesburg Stock Exchange (JSE) was at
$779.1 billion. Months ago the JSE market cap stood at $594 billion while South
Africa’s 2010 GDP stood at $524 billion. So what does the
GDP-Market Capitalization correlation cause one to interpret?
Based upon the Nigerian projections which
point to its out-performance of South Africa over the next 15 years, Sub Saharan
Africa’s vibrant markets are the place to have investment as the returns are
very profitable to say the least however note that in between these dominant
markets are the more interesting smaller financial locations which give a higher
yields in return profits for the investor & venture capitalist, Namibia and Mozambique are examples.
The Future looks bright in Africa
The Future looks bright in Africa
