What is the best way to secure my money while making good profits ? What are stock exchanges and how do they work ? Can I invest in west African stock markets?
If you recently had some extra cash in hands or tried to boost your personal finances, you may have these questions in mind. In this article, we will provide you with 5 good reasons to invest on West African stock markets…
5 good reasons to start investing in african stock markets
- African companies are dynamic and growing quickly. Invest your money for capital gains and dividends
- You’ll make good profits and dividends, more than any traditional investments
- Accumulate capital with investment products which fits your needs
- You can be your own trader and manage your portfolio by picking the stocks you want
- Contribute to the development of companies in your home country
Survey: What made you invest in stock markets
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If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.
When you invest in stock markets you become a shareholder and then will receive dividends every year. In 2021, many companies listed on BRVM pay a record of dividends:
- SGBCI distributed XOF 34 billions to its shareholders (50% of net revenue) in 2021.
- SONATEL distributed XOF 136 billions in (50% of net revenue) 2020
Also, you will make profits on capital gains when you sell the stocks, assuming a higher selling price. In 2021, the BRVM composite index grew by 39%.
Secondly, you should know that people who invested in stocks or funds, historically made more profits compared to other investment like savings accounts or commercial deposits.
In comparison, the average annual returns paid by bank saving accounts in the WAEMU zone is 4% while stock performance on this region is 4 time bigger. Meanwhile, nominal annual returns on bonds are around 8%.
There are also innovative instruments on streets which can generate bigger profit and outperform stocks. These are cryptocurrencies and algorithmic trading. However, these instruments are highly volatiles and sometimes loose money. In addition these instruments are not available on the majority of African markets.
The best way to achieve financial success is discipline. Investors who constantly save money into their trading account see growth in capital at lowered average cost.
Several instruments from secured bonds to the most risky stocks are available. We can choose whatever product you want based on your financial objectives, risk aversion and time horizon.
Being your money manager means analyzing the market and selecting the stocks yourself.
This financial independence is the best way to build your own success. Investing on BRVM, GSE or NSE will allow you to do so.
We are working to provide an application that will:
- Set notifications about the companies you want
- Allow you to send orders directly to the brokers
- Build you own strategies
Investing in stock markets in west Africa (BRVM, GSE and NSE) will contribute to increase financing and liquidity for companies operating on the WAEMU economy .
Stock markets are currently encouraging medium size enterprises to enlist. Being an investors on these markets will increase liquidity and allow companies to raise money more easily.