African Journal of Political Science

African Journal of Political Science ISSN 3461-2165 Vol. 1 (1), pp. 001-008, December, 2007. © International Scholars Journals

Full Length Research Paper

Identification of Emerging markets in Africa based on certain criteria

J.R. Kehl

Rutgers University Department of Political Science, Graduate Department of Public Policy, 401 Cooper Street Camden, New Jersey, USA, 08102, 856-225-2994. Email: [email protected].

Accepted February 21, 2007

Abstract

Emerging markets present an exciting challenge for international finance and foreign investment. New markets hold both promise and peril. They have the potential for remarkably high returns, while simultaneously harbouring substantial risks. The objectives of this research are; 1) to refine our understanding of emerging markets based on new information about the foreign investment decision-making process, and 2) to more accurately identify emerging markets in Africa based on ten criteria previously excluded from analyses. The methodology consists of a performance evaluation regarding macro political and macro economic indicators; and CSTS regression to correlate investment patterns with investors’ preferences. The analysis identifies nine newly emerging markets in Africa, and an additional ten that are making progress. The results suggest specific strategies for ‘marketing’ newly emerging economies to foreign creditors and global investors.

Keywords: Emerging Markets, Development, Africa, Foreign Investment.