Investing in Africa: Opportunities in Stocks, ETFs, and Real Estate
By Prableen Bajpai Updated October 30, 2025 Reviewed by Andy Smith Fact checked by Vikki Velasquez Africa is rapidly becoming a major destination for emerging markets investors. The World Economic Forum has identified more than half of the world’s fastest-growing economies as located in Africa since 2020.1 Here we look at Africa’s economic development since 2000 and its future prospects and key investment vehicles: stocks, ETFs, mutual funds, ADRs, and real estate. There are nonetheless some risks and a need for due diligence when investing in the region. Key Takeaways Unlocking Africa’s Natural Wealth The African continent is incredibly rich in natural resources. It has huge, untapped reserves of natural gas and oil (about 20% of the world’s reserves) and largely unexploited hydroelectric power. It is home to vast gold, platinum, uranium, cobalt, and diamond reserves.2 More than 60% of the world’s arable land is in Africa, but according to a 2019 report by McKinsey, the continent’s agriculture is only living up to a fraction of its potential.34 Africa also has the advantage of a large and relatively cheap labor force. The continent is undergoing a demographic transformation, with youth as its theme; there is a very high proportion of Africans in their 20s and 30s with fewer dependents—both old and young—that will play out over the next decade.5 There is stability in terms of governance, and many countries that witnessed terrible periods of unrest have emerged as success stories. There are better policies in place, trade has improved and so has the business environment. Africa’s Economic Growth Trajectory According to the World Economic Forum, by 2030, over 40% of Africans will belong to the middle or upper classes, and there will be a higher demand for goods and services. By that time, household consumption is expected to reach $2.5 trillion, more than double that of 2015 at $1.1 trillion. Much of that $2.5 trillion will be spent in three countries: Nigeria (20%), Egypt (17%), and South Africa (11%). But Algeria, Angola, Ethiopia, Ghana, Kenya, Morocco, Sudan, and Tunisia will attract companies seeking to enter new markets. The sectors expected to grow the most by 2030 are food and beverages, education and transportation, housing, consumer goods, hospitality and recreation, healthcare, financial services, and telecommunications. How African Stocks Reflect Economic Trends Sub-Saharan Africa has 26 stock exchanges representing 22 countries.7 These exchanges have a lot of disparity in terms of their size and trading volume. The continent has a handful of prominent exchanges and many small exchanges that are characterized by small trading volumes and few listed stocks. Efforts are being put in place by all countries to boost their exchanges by improving investor education and confidence, improving access to funds, and making the procedures more transparent and standardized. Exploring Investment Options in Africa African stock markets come in different varieties, and they require deep understanding to select the appropriate stock exchange. Due diligence is key. Investing through a mutual fund or exchange traded fund (ETF) is often a better bet for small investors looking for exposure to the economies of Sub-Saharan Africa. Such funds track a large basket of companies doing business in the region, rather than relying on any single stock or venture. Investing Directly in African Stocks It is possible to invest in African stocks directly, although this route may come with additional risks. Some foreign stocks trade in North American exchanges as depositary receipts, securities that represent stocks in a foreign company. Domestic brokerages, such as Fidelity, also offer trading in international stocks, although doing so does involve some additional paperwork.8 There are downsides to trading international stocks. According to the U.S. Securities and Exchange Commission, domestic traders may face additional risks on the foreign stock market. Foreign companies may be subject to less stringent regulations or reporting requirements than those at home, and U.S. investors may incur unexpected taxes. In addition, foreign securities are often priced in a foreign currency, adding an additional layer of risk for the U.S. trader. Leveraging Exchange-Traded Funds for African Markets Investing via ETFs and mutual funds comes with the built-in advantage of ease (they are traded on U.S. exchanges), diversification, and professional management. Some prominent ones include: VanEck Africa Index ETF The VanEck Africa Index ETF (AFK) tracks some of the largest and most liquid stocks in Africa. It holds about 82 stocks and has a country allocation (top three) to South Africa (33.34%), Morocco (15.76%), and Canada (8.06%). Over the five years before 2023, the fund has closed each year with an average 5.36% loss in net asset value (NAV).11 The iShares South Africa Index Fund The iShares MSCI South Africa Index (EZA) is allocated 97.32% to mid-sized and large companies in South Africa in the financial, materials, and consumer discretionary sectors. Over the five years ending in June 2022, the fund gained annualized returns averaging negative 1.87% each month. VanEck Egypt Index ETF The VanEck Egypt Index ETF (EGPT) gives access to Egypt, the third-largest economy in Africa, with an allocation of around 93%. Over the five years ending in June 2022, the fund posted an annualized average loss of 10.19% of its net assets. Investing in Africa Through Mutual Funds Mutual funds invest in a large basket of different securities, usually targeting specific economic sectors or regions of the world. There are many such funds invested in the developing world as a whole, as well as those that invest only in Africa, or only in specific countries. The following are some notable examples: T. Rowe Price Africa and Middle East Fund Abbreviated as TRAMX, this fund is focused on banks and companies in Africa and the Middle East, as well as a handful of European companies that do business there. Over 25% of their portfolio is located in South Africa. Over the five years ending in June 2023, the fund experienced average quarterly growth of 4.41% on an annualized basis. Commonwealth Africa Fund Launched in 2011, the Africa Fund (CAFRX) is one of five mutual funds under the umbrella of the Commonwealth International Series Trust. It largely invests in equity and debt securities issued by African companies involved in manufacturing and mining. Over the five years before June 2023, CAFRX experienced
Think €250 Is a Small Test Investment? That’s How the Scam Starts, FSMA Warns
Belgium’s Financial Services and Markets Authority (FSMA) has issued a fresh warning to the public after uncovering a growing network of fraudulent online trading platforms targeting European investors. The regulator says the schemes promise fast profits but rely on deception, pressure tactics, and fake trading dashboards to steal funds from unsuspecting users. Other schemes exploit dating apps, WhatsApp messages, or so-called investment “clubs” to initiate contact. In many cases, scammers pose as financial advisers or acquaintances who claim to offer private earning opportunities. Once victims engage, they are urged to sign up on professional-looking trading platforms and deposit an initial sum, often around €250. Some scammers request remote access to victims’ devices to “assist” with account setup, a move that exposes bank logins and personal data to cyber theft. After the first deposit, victims are shown simulated profits to create the illusion of successful trading. In reality, no trades take place. Fraudsters use this illusion to pressure victims into investing more money. The FSMA notes that high-pressure phone calls, time-bound offers, and intimidation are common tactics. Withdrawals expose the fraud. Victims who request their funds face delays and are told to pay invented taxes or fees. In most cases, the platform blocks withdrawals and cuts contact once victims resist further payments.