Africa Looks to Rebound (AFK, GAF)

The World Economic Forum on Africa recently began on May 5th to discuss how the continent can reach its economic potential. When the global credit crisis hit the continent, there was a general slowdown in economic growth across sub-Saharan Africa. However, this was distributed unevenly. For example, in Tanzania, growth slowed from 7.5% to 5.5%, Zambia's economy grew, albeit slightly and Senegal could only manage a fragile 1.5% GDP growth. However, the Forum predicts a rosier outlook for all nations of Africa. The group found that with the global economy recovering, demand for African exports and prices of the commodities it produces have jumped significantly. In addition, individual nation’s finances were in much better shape going into this downturn than in previous slumps. This has aided in recovery. Investors with long enough timelines or wanting to play short term pops in the African economy have a few choices for a portfolio. The SPDR S&P Emerging Middle East & Africa (NYSE: GAF) and the more broad based Market Vectors Africa Index ETF (NYSE: AFK) are the perfect ways to add the emerging continent to a portfolio.