“As hard as it may be to imagine, I believe these countries, collectively and individually, will overtake South Africa in the next five to 10 years in terms of growth.” Peter Kohil, Wealth Manager with DMS Funds, speaks about what a lot of us already know – West Africa is on the rise. More after the click.
The frontier markets of Western Africa have the most promise for uncorrelated long-term potential of all sub-Saharan Africa. Having covered the larger countries of this region — Nigeria and Ghana — I want to now take a deeper dive into those countries less familiar to many investors, Sierra Leone and The Ivory Coast (Côte d’Ivoire).
As hard as it may be to imagine, I believe these countries, collectively and individually, will overtake South Africa in the next five to 10 years in terms of growth.
Sierra Leone
Sierra Leone, a country of six million, experienced GDP growth of roughly 15% in 2012 and again in 2013. Like many African countries, this growth was driven by the mining sector. Iron-ore production contributed to the country’s GDP growth from 6% in 2011 to current levels, which are expected to continue as iron-ore projects become fully operational.
He writes in depth about Sierre Leone, before moving on to Ivory Coast:
Ivory Coast
The Ivory Coast (Cote d’Ivoire) is the largest economy in the West African Economic and Monetary Union (WAEMU), consisting of 40% of the Union’s GDP [eight WA countries, Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo].
Cote d’Ivoire GDP growth for 2012 was 9.8%; the forecast for 2013 is 10.22%. With a population of nearly 20 million, the country is one of the larger in West Africa. It’s also one of the continent’s best-developed countries, possessing outstanding infrastructure in comparison to other developed countries, including 82,000 km in roadways. Abidjan, the country’s capital, is home to the second largest port on the continent.
To read the entire article, click here.
What do you think about West Africa overtaking South Africa in the next 10 years? Share your reactions in the comments section below.
