Africa is a resource-rich continent with vast mineral reserves. It holds an estimated 30% of the world’s mineral reserves including 40% of the gold, 60% of the cobalt, and 90% of the platinum group reserves. And according to the National Intelligence Council, 25% of U.S. oil imports will come from Africa by 2015. The largest economies in the world, including the U.S. and China, are looking to Africa to supply many valuable and strategic natural resources.
Certain African markets are in only the earliest stages of development and may experience political and economic instability, capital market restrictions, unstable governments, weaker economies and less developed legal systems with fewer security holder rights.