Africa: The Next Great Energy Growth Story
24 February 2012
InvestorPlace - February 23, 2012
When it comes to emerging markets and energy production, powerhouses like Brazil and Russia tend to dominate portfolio holdings. Both nations have been blessed with a vast array of hydrocarbons and natural resources — Russia is the world’s leader in natural gas, and Brazil’s deepwater salt-fields could be home to some of the richest concentrations of oil in recent history.
Equally rich — but less known — is the emerging oil story in Africa. The continent often is completely ignored by investors, but the tale brewing there could be exactly the catalyst needed to propel the region into superstar status.
Investors willing to bet on this relatively unknown growth story could reap significant profits in the long term.
Surging Reserve Growth
Years of corruption, infighting and violence have tainted perceptions of the continent. However, Africa’s rich abundance of natural resources is leading to its revival. Overall, the continent is becoming more politically stable, and resource dollars are beginning to find their way back into African infrastructure and telecommunications.