Ghana:
Of-course the Ghana story is well documented and commented upon, with commercial oil production scheduled for the end of this year and plenty of foreign firms and investors flocking Ghana.
The Ghanaian Cedi changes at a rate of 1 Ghana Cedi = 0.70 USD, after dropping four zeros in the past few years.
The country is hailed as a model democracy in Africa, a position Kenya once pretended to hold until, we fought and killed each other…
Well, hopefully oil dollars won’t throw Ghana into this trap. And should they continue on the growth trajectory they are positioning themselves for, then am very bullish on the Ghanaian stocks especially their banks and oil companies.
Uganda:
This is another oil story with a twist, the country still has rebels engaged in guerrilla warfare. That worries me somewhat, that even if there will possibly be an oil windfall, this could send the country into more chaos.
But should Museveni hold it steady and steer the country out of this path( a big ‘if’), then this forms a good country to also consider. And Uganda is currently implementing a central depository system and most of the shares are being immobilized, this has been one of the things that has slowed me down when investing in Uganda as I have to sign sale orders, follow up to receive share certificates and lodge them when selling.. terrible admin which was Kenya a few years back. After the share immobilization in Kenya, traded volumes increased and market liquidity improved, this is an effect am hoping will be replicated in Uganda in the next few weeks.
I am positioning myself here for the local companies, not the cross-listed Kenyan companies. For those I don’t need to take a currency risk since I can still be exposed to them with the shilling.
These are two countries I will keep a close eye on in the coming months, with a view to accumulate.
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{ 2 comments… read them below or add one }
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
With Mheshimiwa Museveni as president, I do not think the rebels pose a big threat however am waiting to see whether the oil will benefit Ugandans or the corrupt high & mighty.
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