5 Best African Stocks to Buy Now

In this article, we will discuss the 5 best African stocks to buy now. If you want to see more stocks in this selection, go directly to the 10 Best African Stocks to Buy Now.

5. Harmony Gold Mining Company Limited (NYSE:HMY)

Number of Hedge Fund Holders: 11

Harmony Gold Mining Company Limited (NYSE:HMY) is a Randfontein, South Africa-based corporation that has the distinction of being the biggest gold mining company in South Africa. The company also has operations in Papua New Guinea.

Harmony Gold Mining Company Limited (NYSE:HMY), founded over seven decades ago, is considered a solid long-term investment for investors interested in gaining exposure to the African gold mining industry. During Q3 2022, the company’s Tshepong North and Tshepong South gold mines reported stellar results. The mines generated 37% of operating free cash flow for Harmony Gold Mining Company Limited (NYSE:HMY) due to better grade production. Furthermore, Harmony Gold Mining Company Limited’s (NYSE:HMY) South African business segment countered the impact of lower production from the international segment.

AQR Capital Management increased its stake in Harmony Gold Mining Company Limited (NYSE:HMY) by 902% during the third quarter of the year.

4. AngloGold Ashanti Limited (NYSE:AU)

Number of Hedge Fund Holders: 13

AngloGold Ashanti Limited (NYSE:AU) is another gold mining company based out of Johannesburg, South Africa. The company is at the fourth position on our list of the ten best African stocks to buy now.

Although AngloGold Ashanti Limited (NYSE:AU) completed the disposal of its South African operations in September 2020, it still has a significant presence in the African continent through its five operations. These operations are centered in the Democratic Republic of Congo (DRC), Ghana, Guinea, and Tanzania.

In a research note issued to investors on November 23, Abhi Agarwal at Deutsche Bank increased the price target on AngloGold Ashanti Limited (NYSE:AU) from $16 to $20 and maintained a Buy rating on the stock. The analyst firmly believes that the supply from the mining companies would not be enough to fulfill the ramped-up demand. AngloGold Ashanti Limited (NYSE:AU) is expected to increase production and be a beneficiary of the rising demand in the coming quarters.

Of the 920 hedge funds in Insider Monkey’s database, AngloGold Ashanti Limited (NYSE:AU) was held by 13 hedge funds as of Q3 2022.

3. IHS Holding Limited (NYSE:IHS)

Number of Hedge Fund Holders: 14

IHS Holding Limited (NYSE:IHS) is a London, UK-based provider of telecommunications infrastructure across the continents of Africa, Latin America, and the Middle East. The company has the distinction of being the fourth biggest independent tower company in the world.

On November 16, Colby Synesael at Cowen increased the target price for IHS Holding Limited (NYSE:IHS) from $27 to $29 and reiterated an Outperform rating. The analyst highlighted that IHS Holding Limited (NYSE:IHS) is showing signs of resilience as the company is aggressively pursuing its carbon reduction roadmap called Project Green. Synesael thinks IHS Holding Limited’s (NYSE:IHS) balance sheet offers flexibility which can result in a better valuation. IHS Holding Limited (NYSE:IHS) is one of the best African stocks as the management is focused on improving the company’s fundamentals and is targeting a revenue CAGR of 11% till 2025.

2. Sibanye Stillwater Limited (NYSE:SBSW)

Number of Hedge Fund Holders: 18

Sibanye Stillwater Limited (NYSE:SBSW) is a Roodepoort, South Africa-based mining company. The company is considered the biggest producer of platinum, the second biggest producer of palladium, and the third biggest producer of gold globally.

Sibanye Stillwater Limited (NYSE:SBSW) also owns a 50.1% stake in DRDGOLD Limited (NYSE:DRD). Experts believe that the South African operations of the company are a bright spot in its global portfolio. Furthermore, the company has a solid balance sheet and is focused on growing its presence in the raw materials segment for batteries through acquisitions. Sibanye Stillwater Limited (NYSE:SBSW) is considering the precious metals required for batteries as the next growth frontier. Furthermore, it is also believed that the share price of metal mining companies has already priced in the impact of a mild recession along with many other recent developments.

Here’s what Desert Lion Capital said about Sibanye Stillwater Limited (NYSE:SBSW) in its Q2 2022 investor letter:

“Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. On top of its additional gold mining operations in SA, the business has significant upside optionality in its growing lithium and nickel operations which are not yet contributing to earnings and remain unrecognized by the market in SSW’s price.

PGM and gold prices are lower than a year ago and Sibanye Stillwater’s earnings followed suit. Gold operations made a loss during the period due to a wage negotiation labor strike (see chart on next page). Notwithstanding all these headwinds, the company reported H1 2022 earnings per share of R4.23 which was in line with the six months ended December 2021 EPS…” (Click here to see the full text)

1. Kosmos Energy Ltd. (NYSE:KOS)

Number of Hedge Fund Holders: 30

Kosmos Energy Ltd. (NYSE:KOS) is a Dallas, Texas-based crude oil and natural gas exploration and production (E&P) company. The company is a player in the offshore E&P business.

Kosmos Energy Ltd.’s (NYSE:KOS) share price increased by 104.5% over the previous 12 months. The company posted strong Q3 results as it benefited from rising energy prices and demand over the last year. Since the conflict between Russia and Ukraine started in late February 2022, crude oil and natural gas prices have remained considerably high.

In Africa, Kosmos Energy Ltd. (NYSE:KOS) has a presence in Equatorial Guinea, Ghana, and Senegal. There is a huge energy market in Africa as 600 million people in sub-Saharan Africa still do not have access to electricity, and 900 million do not have access to clean cooking fuels as of 2022. Furthermore, between 2019 and 2021, the region’s access to energy declined by 4%. Kosmos Energy Ltd. (NYSE:KOS) targets to increase production by 50% by the end of 2024 to meet the unmet energy demand. The company’s strong growth potential justifies its inclusion in the list of the best African stocks to buy.

You can also take a peek at the 13 Best Robotics Stocks To Buy and the 12 Best Apparel Stocks To Buy Now.

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