Successful investors are those who can make their money work. However, it does not come for free: they usually have to constantly monitor the market and keep the balance between risk and benefit. The higher are the risks, the higher are the potential profits – this is the standard case, and vice versa is true. Each investor relies on his or her own strategy: some of them are prepared to risk losing money, while others take a patient approach and low risk.
Investors usually read a lot and learn new things to make their money work more efficiently. If you want to find out more about the best investment strategies in the current business environment, please follow the above link and visit our portal called International Wealth. We provide all the best information related to wealth accumulation and preservation, and you will find a lot of articles devoted to investment, asset protection, tax optimization, and more.
You can also book a session with our expert to discuss all matters related to making your money work: from investment in securities, real estate, citizenship, and other valuables to setting up a company, a business account, or a trust to protect your wealth. We can help you overcome all administrative hurdles and make profitable investments abroad!
Meanwhile, let’s look at the best investment strategies available.
Investment Projects in Africa
If the African continent conjures up images of barren land and malnourished children, it means that you know only one side of Africa. The other side includes politically stable countries with rapidly growing economies, such as Botswana, Kenya, South Africa, Egypt, and Morocco, to name just a few. These are attractive jurisdictions where you are sure to find promising investment opportunities.
Let’s look at the sectors that require investments in Africa:
- Car sales and maintenance (including spare parts): the demand for vehicles is high, while the number of local manufacturers is limited.
- Electricity generation (mainly with the help of solar panels) and selling.
- Agricultural business: there is a lot of fertile land in Africa, but the local farmers do not have sufficient resources and tools to cultivate it properly.
- Investment in affordable housing which will be in great demand as the continent is expected to become the main center of population increase by 2050.
- The digital economy is actively growing, which means that e-commerce and other online services are in great demand.
- Local entrepreneurs would be happy to have innovative fintech products to simplify online payments for them.
- High-quality education services (for example, private secondary schools).
- Tourism and hospitality sectors need more development.
- Mining and construction industries require the rental of specialized equipment to develop more rapidly.
- African businesses need a connection to the rest of the world to go international. However, they lack logistics and transportation services.
You can see from this list that the demand for different products, services, and investments in Africa is very high as this is a developing market. The majority of new millionaires are highly likely to be coined in Africa in the near future.
Corporate Bonds
Investments in government bonds are usually associated with a low risk, while the returns may vary from country to country. If you are looking for higher returns, please pay attention to the bonds issued by state and private corporations that usually yield more profit than those issued by the government.
As you probably understand, your sole guarantee is the financial standing of the company that issues bonds. It means that you should do thorough research or seek professional help to find the most reliable corporations before you decide to invest in their bonds.
Let’s take a look at some profitable bonds you can take advantage of in 2023:
- Bonds issued by Georgian companies yield from 6% to 9% in US dollars. The only drawback is that you will need to be personally present to open a brokerage account (no remote opportunity exists), and you will have to provide proof of the origin of the funds to be invested.
- Bonds issued by Armenian companies bring from 6% to 9.5% in US dollars, and foreign investors are exempt from income tax and dividend tax on coupon income.
- Bonds issued by Kazakhstani companies yield from 10% to 30% in KZT, and you can also invest in ESG bonds to fund social and environmental projects.
- Bonds issued by Brazilian companies will bring 6% and more in US dollars. Non-resident investors will not have to pay any taxes on the transactions with debt securities, no matter whether they deal with governmental or corporate bonds.
Analyze the issuer’s financial standing, the current market situation, and any important goings-on in the industry before you make an investment decision.
Bank Deposits in the National Currency
Some currencies are safer than others, like US dollars, euros, pound sterling, or Swiss franc. Conservative investors tend to choose these and are disappointed to find out that no bank can offer more than 5% annual interest. However, if you look at the national currencies of other countries, you may get much higher profits.
You can invest in:
- Sri Lanka in LKR for one year to earn 11%
- Egypt in EGP for 3 to 5 years at 18%
- Oman in OMR for 1 to 5 years to get from 3% to 5%
- Armenia in AMD for at least 3 months to get from 6% to 10%
- Azerbaijan in AZN for 6 to 24 months at 11%
Here are the questions to think about before you make a considerable investment:
- Does the deposit rate exceed the inflation rate in the country?
- Do the banks open accounts for non-residents?
- What taxes are payable on interest earned from deposits?
- What is the minimum deposit?
- Does the interest rate vary depending on the deposited amount and term?
- Is the investor entitled to any perks (like a residence permit) after opening an account?
- What amount of deposit is subject to insurance?
Conclusion
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