Since the year 2003, African stock markets have been growing in exponential proportion. Only that you do not read it on the pages of the newspapers. It has been hush, hush, hush.

Many African stock markets have outperformed the world’s average for three years in a row. In some financial quarters, these African countries are now referred to as the African tigers. Some of the countries in this category of the most active markets are Botswana, South Africa, Nigeria, Kenya, Ghana, French West Africa, Namibia, and Zambia. In 2002, Botswana’s five year cumulative return was at 225.5%.

The marvelous performances of these African countries have sparked direct investment from countries like the Netherlands, Russia, India and China. In spite of the attractive returns, it is still underutilized by individual investors, like Africans abroad.

Already institutional investors have taken notice and are pouring in millions of dollars to African countries. Many of the growths are occurring in telecommunication and financial sectors.

The Namibian Stock Exchange (NSX) recorded a N9.4 billion this year, a 141 percent increase on the amount recorded in 2006. According to the United Nations African Stock Markets handbook published in 2003, from 1992 to 2002, Nigerian stock market capitalization jumped from $1.2 billion dollars to $5.8 billion dollars. Ghana’s stock indices jumped from 79.10 to 1395.31 at the same period.

As at September 2006, Johannesburg Stock Exchange market capitalization was $579.1 billion dollars. It is ranked as the 16th largest stock exchange in the world.

According to Ehimen Edokpa, the principal partner at Boston based Integrity Group, “Nigeria is the fasted growing economies in Africa and one of the best in the world.” He contended that, “The recent consolidation in the banking industry created a strong and robust financial sector in Nigeria. Banks are attracting foreign investors and private equity firms.”

In 2006, Nigeria received its first ever credit rating (BB-) from Fitch rating, a leading global rating agency based in the UK. “A double –B minus rating for Nigeria is very good,” says Veronica Kalema of Fitch, “because it just shows that if managed well its economy has really good prospects.”

Edopka, noted further that, “By settling its Paris Club debt in 2006, Nigeria freed up nearly $1.2 billion annually, a move that has aided the implementation of macroeconomic policies designed to promote domestic competitiveness and growth.”

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