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While Walmart (WMT, quote) has been in China since opening its first store in Shenzhen in 1996, it is expanding operations in Africa. Earlier this year, Walmart acquired Massmart Holdings, a South African entity for $2.4 billion. From there, it will inevitably grow in presence in Africa.
One frontier market frequently on my list of attractive investments is Nigeria, a vital emerging economy.
China is buying African oil and Libyan wells are pumping, getting traders excited about the continent’s theoretical energy wealth again. But instead of waiting for the drills to start turning, why not lock down exposure to the countries and companies we know have the crude?
Citing ineffectual and capricious government policy, Moody’s has reaffirmed its negative outlook on South Africa’s credit rating, as its economy (EZA, quote) is now experiencing slower growth in addition to stubbornly high unemployment.
Reports this week that graft related to controversial oil subsidies have incensed the Nigerian public. The presentation made to the Nigerian Parliament indicated that the country lost $6.8 billion because of blatant corruption within the subsidy program.
