African ETFs Benefit From Continent's Growth

(TheStreet) -- As the world seeks natural resources and economic growth, Africa's economy may continue to witness expansion enabling the Market Vectors Africa Index AFK and the SPDR S&P Emerging Middle East & Africa ETF GAF to reap the benefits. According to a report by McKinsey & Co., from 2000 to 2008 the world's second largest and second most populous continent witnessed a compound economic growth rate of 4.9%. Although this growth is not as great as that witnessed by emerging Asia, it superseded that of Latin America and Eastern Europe. Furthermore, even the poorest region of Africa witnessed gross domestic product growth of 4.8% between 2004 and 2008. Lastly, the report indicates that even though the overall global economy shrank by 2 % in 2008, Africa actually grew by 2% during the same period. A major reason that Africa has witnessed this growth and is likely to continue to grow is its abundant supply of commodities and natural resources. On the energy forefront, Africa has nearly 16 billion metric tons of proven crude oil reserves and nearly 500 trillion cubic feet of gas reserves. Additionally, the continent has 90% of the world's cobalt, 90% of its platinum, 50% of its gold, 98% of its chromium, 70% of its tantalite, 64% of its manganese and one-third of its uranium. Furthermore, Congo has 70% of the world's coltan, which is found in nearly all of the world's mobile phones, and is home to more than 30% of the world's diamond reserves. To read the rest, head over to TheStreet.com