Go!
While many investors know emerging markets have generated strong investment returns over the past decade, they often overlook the promising opportunities in Africa. Which African stock market has been one of the best performing, generating more than a +200% return over the last five years alone?

A.) Angola
B.) Mali
C.) Cameroon
D.) Tanzania
E.) Nigeria
Published: September 29, 2008

The correct answer is      (E.)  Nigeria

Nigeria, the largest African country by population (with 140 million citizens), is admittedly very poor: Seven in ten residents live on less than US$1 a day. But thanks to rapidly rising revenue from oil exports -- with China supplying the lion's share of demand growth -- Nigeria's economy has grown at an annualized rate of about +6% over the past five years. As a result, the country's stock market has been one of the best performing in the world over the past few years, returning more than +200% over the last five years alone.

In the past decade, we've witnessed a sea of change in the attitudes of investors toward emerging markets like Nigeria. Once largely avoided as volatile and unprofitable, markets such as China, India and Brazil have generated steady and surprisingly strong investment returns over the past decade. These markets have years, if not decades, of strong performance ahead of them.

Many experts think Africa will be the next economic and investment frontier due to an enormous population, tremendous natural resources, a growing number of democracies with reform-minded leaders, and plenty of room for economic growth. This year, with most developed economies barely eking out positive economic growth, many African economies continue to tear up the track with expected growth rates in the +5-7% range.

Unfortunately, individual U.S. investors can't buy stocks directly on the Nigerian Stock Exchange. But don't get discouraged; there are still a number of ways U.S. investors can tap into the hot Nigerian market. And StreetAuthority editor Nick Lanyi has done all the leg work for you. In fact, in the latest issue of his High-Yield International newsletter Nick takes a long look at Nigeria and African income plays. He also profiles a high-income stock that serve as a proxy for growth in Nigeria and other top-performing African markets. To learn the names of this stock, and to learn more about the High-Yield International newsletter, please visit this link.

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