The Risks and Rewards of Emerging-Market Investing

For savvy investors, these thriving economies provide a prime opportunity for big returns.


But as the performance of mature economies versus emerging economies has shown, the upside to investing in emerging markets is high. And according to the April 2012 Global Economic Monitor issued by the Institute of International Finance, opportunities are ripe across Africa.

"High yields on government securities in emerging and frontier markets in Sub-Saharan Africa have caught the eye of foreign investors over the past few years," the Institute found. "With returns in mature markets remaining low since the global recession in 2008, interest rate differentials have been large, making higher yielding, but inherently riskier, investments more attractive."