Africa’s Evolving Economy
The economy in Africa is on the rise, and financial hubs are beginning to slowly emerge. While Africa has traditionally played a minor role in the world market and global economy, the continent is coming into its own as a hub for financial services and entrepreneurship. Africa’s growing elite has added approximately 19,000 new millionaires over the past decade, with total private wealth totaling approximately $2.3 trillion United States Dollars. An easy way for investors to invest in Africa’s growth is by purchasing the iShares MSCI South Africa ETF (exchange traded fund) through a stock broker such as Charles Schwab or TD Ameritrade.
The iShares MSCI South Africa ETF (exchange traded fund) is listed on the New York Stock Exchange with the symbol “EZA” and gives investors exposure to large and mid-sized companies that are located in South Africa. The iShares MSCI South Africa ETF (exchange traded fund) seeks to track the investment results of an index composed of South African companies that can benefit from Africa’s expected phenomenal growth during the next few decades.
The five wealthiest cities in Africa are located in three countries:
1. Johannesburg, South Africa ($276 billion)
Founded in the Witwatersrand Gold Rush of 1886, South Africa’s City of Gold is a hub for financial services, professional services (law firms and consultancies), construction, telecommunications, and basic materials.
2. Cape Town, South Africa ($155 billion)
One of South Africa’s three capital cities, Cape Town’s major sectors include real estate, financial services, retail, and tourism. Cape Town has the highest prime residential rates on the continent at US$6,100 per square meter, similar to cities such as Washington, D.C., or Berlin.
3. Cairo, Egypt ($140 billion)
A hub for Africa and the Middle East, Cairo’s major sectors include real estate, construction, financial services, and basic materials.
4. Lagos, Nigeria ($108 billion)
The clearing house for 80% of Nigeria’s imports, major sectors include basic materials, real estate, construction, telecommunications, transport, and financial services.
5. Durban, South Africa ($55 billion)
Home to the biggest shopping center in Africa – complete with 350 stores, 70 restaurants, 18 movie theaters, an IMAX theater, an indoor climbing wall, and a skate park designed by Tony Hawk – Durban’s major sectors include real estate, finance, healthcare, construction, retail, and transport.