Africa's Investable Universe and Related ETFs

by: David Hunkar

The investable universe in Africa is listed in the graphs below.

Click to enlarge:

Source: Africa’s Investable Universe, Nick Ndiritu, Allan Gray Asset Management, South Africa

The aggregate market capitalization of all African markets, excluding South Africa, as shown in the first graph is about US$250 billion, or about 20% of GDP. In many countries a very few sectors have a high concentration in the country’s stock market capitalization. For example, in Nigeria, banks account for about 50% of the total equity market.

South Africa has the largest economy in Africa and accordingly has the largest market capitalization, as shown in the second graph. Some of the South African companies trading on the U.S. markets include AngloGold Ashanti (NYSE:AU), Gold Fields (NYSE:GFI), Harmony Gold (NYSE:HMY), Randgold Resources (NASDAQ:GOLD) and Sasol (NYSE:SSL).

To put the African market caps in perspective, excluding South Africa, the equity market capitalization of all the individual countries are less than that of the market capitalization of Apple (NASDAQ:AAPL), which is at about $340 billion.

Related ETFs:

Market Vectors Africa Index ETF (NYSEARCA:AFK)

PowerShares MENA Frontier Countries Portfolio (NASDAQ:PMNA)

iShares MSCI South Africa Index Fund (NYSEARCA:EZA)

SPDR S&P Emerging Middle East & Africa (NYSEARCA:GAF)

Disclosure: No positions