If you're interested in the Forex market, you likely have a natural curiosity about countries dissimilar from yours - I know I do. Though I hail from a developed country, I can't help but root for the underdog, and I've recently taken a closer look at two under-developed nations that I think have significant potential for future growth - and profits.
South Sudan
The first country I'm particularly interested in is South Sudan. I'm interested because this is a nation with vast natural resources which is literally being built from the ground up. The country has no infrastructure, no economy and no way to tap their oil wealth. At first glance, this would seem to be a nation which simply doesn't have the possibility of being able to make money – after all, you need to have money to hire people.
Donations and Future Wealth
However, I see that South Sudan has significant potential to make money for smart people now and in the future. First, let's start with the now – in spite of the crisis in world financial markets, most wealthy nations still donate money to poor nations and South Sudan is definitely primed to receive investments of capital from these donor nations. At first, this money will be directed toward rebuilding the country – this means improving the roads, building up the national airport and in general doing infrastructure work.
Eventually however, I also see South Sudan developing and becoming a fairly wealthy African nation thanks to the oil it has under the ground. Therefore, expect that in a few years time the oil companies will be looking to invest in that nation as well. In short, for the medium and long term, looking for companies which will invest in South Sudan (or investing yourself if you have the money and connections to do it) can pay off handsomely.
Libya
Another country which I'm very interested in is Libya. While Libya actually has had a functioning economy, along with roads and other infrastructure, the country has been devastated by the recent civil war which was fought there. This means that Libya, like South Sudan has the potential to see massive investment in infrastructure improvement to repair all the damage from the war. While they have a much shorter distance to travel than South Sudan, I also see these kinds of companies making money there as well.
Bottom Line
Look for companies which do infrastructure work in order to find a way to make money in South Sudan and Libya. I expect the stocks of these companies to start going up in value, especially if they already have contracts or are in talks for contracts with the governments of these nations.
In the Forex market, I see potential in the long term for the national currencies of both nations to grow in value. However, this is a much riskier investment as mismanagement by either new government could send the value of the local currency plummeting (international infrastructure companies by comparison will generally require payments in hard currency).