The Opportunity in Africa

How African returns compare with those of the S&P 500 and other international indexes.

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Larry Seruma, chief investment officer of Nile Capital Management, says investors are overlooking a tremendous opportunity for growth in Africa. He compiled a table with the returns of eight African countries compared with those of the S&P 500 and other international indexes like the MSCI Emerging Markets Index. You may be surprised by his findings. Here are the returns for the major indexes for the decade ending Dec., 31 2009.

Annualized Returns 1 Year 3 Year 5 Year 10 Year
Dow Jones Industrials 18.82% -5.77% -0.67% -0.97%
S&P 500 23.45% -7.70% -1.65% -2.72%
Russell 2000 25.22% -7.40% -0.82% 2.17%
MSCI World 26.98% -7.65% -0.01% -1.94%
MSCI Emerging Markets 74.50% 2.73% 12.79% 7.29%
South Africa 28.63% 3.55% 16.93% 12.68%
Africa Composite -4.32% -0.72% 9.71% 13.83%

Source: Bloomberg; African data includes South Africa, Nigeria, Kenya, Mauritius, Ghana, Egypt, Morocco, Botswana, through 12/2009.