Growth is not enough for Africa

January 28, 2010

Lots of talk at the moment about how Africa’s economy is looking up.  The International Monetary Fund, for one, reckons sub-Saharan growth will be 1 percentage point above the world average this year and it has put eight African countries in its top 20 fastest growing economies list for 2010.

Reuters has written a special report on the subject as part of its Davos coverage. You can read it here.

But before taking its place alongside Asia and Latin America, the continent has quite a lot of work to do with investors. It could start by giving them something to buy (beyond commodities that is).

Polls of leading institutional investors conducted by Reuters asked a new question about allocations to Africa and the Middle East. The results were a bit grim. On average 44 large firms in the United States, Japan, continental Europe and Britain had less than 1 percent of their equities allocated to the region and the bond allocation was 0.1 percent.

The problem, according to investors, is that while Africa’s economies may be improving, there is very little  in the way of a capital market structure. Nor, often, is there the liquidity needed to let investment in and out. 

When things are available, however, investors will show up. The poll showed yield-hungry Japanese investors to be the biggest fans of  Africa and the Middle East (albeit it relatively).  South African rand-denominatd uridashi bonds are very popular with Japanese retail buyers — to whom they are marketed — what with an 8 percent yield and all.


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Posted by Growth is not enough for Africa « Hope is Together We can make our World a better place! | Report as abusive

29 Jan 2010

How can Africa be different after over two millenniums of going through the tunnel of darkness, torture and torments. Africa is the richest mineral resources land. Western European pension funds and multinational own all the minerals. Now Asians own the few fertile farmlands.

Africa will continue to be a failure until the continent is RE-INTEGRATED FROM DISMEMBERMENT IN BERLIN CONFERENCE 15th Sept 1884. to form a proper country like the ones in Asia and other places. Its landmass and structures need this. Leaderless Africa needs responsible leaders. It must essentially regain control of its borders, land and mineral resources to use the funds to build transcontinental roads and rail network to open the continent up for business within and outside; this is the bottleneck on African Progress. How can outsiders invest in Africa when the corrupt African leaders do not invest their stolen funds in Africa?

Posted by udoafrika | Report as abusive

29 Jan 2010

The book “Africa in the Ancient World and Today” by Nung Uko published by Author House 12/07/2009

Author House UK Ltd, 500 Avebury Boulevard, Central Milton Keynes MK9 2BE 08001974150
ISBN 978-1-4490-0127-8(sc) is worth buying from Amazon and reading to understand the issues of Africa. They are just too complex to give perfunctory treatment.

Posted by udoafrika | Report as abusive

Oh. A great article on this subject.
I am a man of more economics subjects than to other subjects.
Honestly speaking, why i am a regular subscriber, writer to this great news providers,news servicer website to us.
As per genuine market surveys, Reuters world business,commerce and comparative studies on worlds more donations, aids to under developed countries,especially from African States had become popular not only to my favorite Reuters news website, but, also to entire business reporters,corespondents and to other world business networks.
Africa is in natural,mineral resources.
More good productive workers for all general works.
But their economics had not put, and not in great pace for progress compared to other developing nations.
China and India had entered and explored many good openings, executions of cable,broadband connectivity ,installation of more latest communication works, and for more expansions to latest science and technology uses for African nations to come out from dark corners of modern economic planning, structure, implementations and bring her people to modern way of living with available resources, man hours usages,planning and executions of their long pending communication networks and its channels for her openings, and increasing their standard of living and getting maximum usages of their long working hours and their well robust energies for their own benefits.,

Posted by mdspatsy | Report as abusive