China Petroleum & Chemical Corp (ADR) (SNP), Barrick Gold Corporation (USA) (ABX): Will Africa Be the Next Booming Economy?

With that said, countries are willing to make major investments in Africa, and that portends major growth in the future. The question for investors is whether they want to follow sovereign nations into buying up natural resources through mining companies, whose stock prices often hinge on the going price for commodities.

A better bet might be looking at stocks of consumer-goods companies. As China has witnessed, greater investment has led to a rising middle class with more disposable income. A similar trend might follow in Africa, with stocks such as Yum! Brands, Inc. (NYSE:YUM), whose KFC restaurants have been expanding their presence, and Diageo plc (ADR) (NYSE:DEO), which may still sell more Guinness in Nigeria than it does in Ireland. Wal-Mart Stores, Inc. (NYSE:WMT) also has a significant presence in Africa.

These are the kinds of companies that will benefit their investors as Africa comes into its own, and you may want to be there with them when it does.

The article Will Africa Be the Next Booming Economy? originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Diageo.

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