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.
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