Africa-The Final Frontier

In Barron's:

To many Western investors who don't look past the stereotypes, Africa is terra incognita. Their ignorance could cost them plenty in lost opportunity.Take the U.S. Chamber of Commerce, which in a survey last summer revealed that "over all, U.S. businesses do not view Africa as an attractive place to invest. The image of lawlessness, corruption, unstable governments, an inadequate infrastructure, uneducated or untrained people and an unwelcoming government attitude toward business serve as major deterrents."That depiction is increasingly mistaken...after a big drop from boom highs in early 2008, African stock markets—despite their problems—now offer the long-term investor a number of fast-growing companies with stocks that sell for about 11 to 12 times trailing 12-month earnings per share as of June 30, according to S&P Indices. They look inexpensive compared with price/earnings ratios in most developed markets or even in the broad world of emerging markets, where the average stock fetches 15 times trailing profits.