I studied political philosophy in college at the London School of Economics. I have experience in trust banking. I have been published in the UB Post, Forbes Asia, and on Seeking Alpha. Frontier and emerging markets research and writing is my work. Sri Lanka and Mongolia are the primary focus of... More
Harris Kupperman (on Seeking Alpha) and of the free blog Adventures In Capitalism has spent time there and blogged about it (Mozambique, Zimbabwe, Namibia, etc - go to the site and look it up)
A high quality reader inspired me to start this blog with an e-mail which said:
"If you might be interested in creating an East African blog sometime in the future, I can share some interesting ideas I've read about Kenya in particular. Here is a sample. An African City Has The Fastest-Growing Luxury Real Estate Prices On The Planet The main investment thesis for East Africa includes: 1. It has a great deal of natural resources, especially oil and gas, many of them have been recently discovered. 2. It is on that side of the continent facing the teeming millions in India and China. 3. The northern reaches of East Africa are not that far away from the main trans- global shipping lanes which the Somali pirates are trying to interfere with in vain. 4. The United States is increasing its involvement in the region. Lord's Resistance Army Disarmament and Northern Uganda Recovery Act By East Africa, I mean that swath of territory encompassing Uganda, South Sudan, Ethiopia, Djibouti and Puntland in the north extending southward to include Mozambique and Madagascar."
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha
community. Instablog posts are not selected, edited or screened by Seeking Alpha editors,
in contrast to contributors' articles.
It seems to be time for we in the West to update our thinking about SubSaharan Africa in the general sense. SubSaharan Africa is becoming more businesslike. http://bit.ly/U5DLa9 SubSaharan Africa is using technological advances to enable prosperity. http://read.bi/12ukCAK SubSaharan Africa's coasts will probably receive the most investment flows given their global positions. The western coasts face European and American business centers. The eastern coasts face the teeming markets of India and China.
One way to investigate any of the African countries is to check with our State Department. They have background information regarding the overall economic and political health of each country from their point of view. http://1.usa.gov/WZQxJY
India is increasing its investment efforts in Africa. India contributes technological skill, Africa offers access to raw materials, basically for now, but as time goes on, they will trade finished goods with each other. http://bit.ly/YYpH0B http://bit.ly/131dDAt
About a third of Africa's trade is with their former European colonial partners. The Europeans are keen on keeping their market share with the Africans if they can. They will probably have to offer more favorable trade deals to the Africans for the foreseeable future. http://reut.rs/Tz5rDR http://bit.ly/Vl8uOi
There is an global index of global economic competitiveness by country. African rankings are examined at this link. http://bit.ly/ZtVNGp A surprise showing was made by Rwanda, an inland country soon to be connected to the ocean by a new railroad.
A large collection of mining companies working in Africa appear in this Mining Indaba trade show listing of exhibitors. http://bit.ly/119MX0V;alpha=@ MineAfrica also has an enormous amount of information on the African mining scene. http://bit.ly/VP39hr
The Sub- Saharan banking sector is an important participant in Sub- Saharan Africa's economic resurgence. They are telling the world about Africa's potential and actual financial performance with explanatory articles and statistics. http://econ.st/UWKnaj http://bit.ly/13iSPUn http://bit.ly/UWKnak
The African Export-Import Bank facilitates many of the trading transactions taking place between African countries and beyond to the other continents. Some of the trading relationships can be studied from reading their reports. http://bit.ly/VL1Hjf http://preview.tinyurl...
Uranium is usually sought after from the nations with nuclear power plants in a steady way. There has been a price reduction for this commodity since the Japanese disaster a couple of years ago. http://bit.ly/USMMpd http://bit.ly/WH5VED Sub- Saharan Africa can potentially supply much of the uranium the world needs. Niger is the country in the region most noted for its uranium supplies. http://bit.ly/VOb3c2 http://bit.ly/13l9Iyw
Africa has a lot of comings and goings at its ports. One can get a sense of Africa's maritime activity by checking in on this link. http://bit.ly/ZR5uPx
America's economic involvement with Sub- Saharan Africa has steadily increased over the past decades. Much of it consisted of direct aid and assistance through various organizations and agencies. http://www.adf.gov Trading increased more substantially after the passage of the African Growth and Opportunity Act of 2000. The act gave more impetus to more direct trading initiatives and high level discussions. http://1.usa.gov/TS2Kxb http://export.gov/africa http://1.usa.gov/XtYuDK Some of the trade meetings are reverse trade missions whereby American experts explain industrial and commercial processes to visiting African delegations in the United States. http://1.usa.gov/TS2LkT http://1.usa.gov/XtYx2s
Korea is increasing its trading interests in Sub- Saharan Africa. Korea is primarily concerned about acquiring raw materials because they are short of those. Africa gains Korean technical knowledge and products. http://bit.ly/V1AICi http://reut.rs/VVpECg http://bit.ly/V1AICk
There are conflicting reports about the durability of iron ore prices coming out of a recessionary period. Chinese demand is the main demand factor with booms and busts. Supplies will probably increase from Africa and other iron ore rich regions. The African iron ore scene can be detailed at these links. http://bit.ly/UY8MeG http://bit.ly/ZZWYO6 South Africa is the country with the most iron ore in Sub- Saharan Africa. http://preview.tinyurl...
Nickel is mostly viewed to be in a rough balance between supply and demand across the globe. Sub- Saharan Africa is a promising region to look for new supplies of nickel. South Africa is the largest producer in the region. Botswana and Madagascar also have generous supplies of nickel. http://bit.ly/13AtF3B http://bloom.bg/108713M http://bit.ly/13AtDZq http://bit.ly/108713N
One key to future Sub- Saharan prosperity will have to be the reduction of disease prevalence across Africa. New hospitals and clinics have to be built. More doctors and nurses need to be available for the patient load. Sanitary projects need to be constructed. The modern communication technologies will foster more health education among the populace as time goes by. Some progress on improving health is being made here and there but the news indicates any progress is not easy to come by. http://preview.tinyurl... http://bit.ly/10KR7xA http://bit.ly/Vi9TG9 http://bit.ly/10KR9FB
Promoting economic diversification, building critical infrastructure projects and developing human talent for Sub- Saharan Africa are the prime topics for discussion amongst top regional business leaders. http://bit.ly/13WxekR
The African Renaissance is gaining more attention, discussion and analysis. http://bit.ly/W76Q60 This economic phenomenon is being looked at by the U.S. Congress, the Senate Subcommittee on African Affairs and the Congressional Black Caucus Foundation in particular. http://1.usa.gov/14mGAq9 http://bit.ly/W76Ov9
Australia is another country taking more of an interest in Sub- Saharan Africa. Australia's trade with the continent is growing. Many African students are in Australia gaining technical and practical knowledge to help their countries. Mineral rich Australia is an important participant in the Sub- Saharan mining industry. Since Australia is not particularly oil rich, any oil obtained from the Sub- Saharan countries is important to them. http://bit.ly/10YPAD2 http://bit.ly/Y7J3S4 http://bit.ly/10YPAD6 http://bit.ly/Y7Jj3v
South Africa has built its economy over many decades due to its strategic location on the oceanic shipping lanes and rich mineral deposits located inland from its ports. The country has been instrumental in participating in the Sub- Saharan economic renaissance through a series of trading initiatives. Trade agreements, economic integration across national borders and trade promotion by various groups have reinforced South Africa's economic ties with the rest of the continent. http://bit.ly/Y9w8PC http://bit.ly/110NALr http://bit.ly/Y9w7Lp http://bit.ly/110NCDh http://bit.ly/Y9w7Lt South Africa has tended to serve a hub for funneling outside investment to the rest of Sub- Saharan Africa for quite some time. But it now has plenty of competition from the rest of the world wanting to strengthen their own trade with Sub- Saharan Africa. http://buswk.co/110NALx http://bit.ly/Y9w8PF
Russia has been rekindling its interest in Sub- Saharan Africa in recent years. It is sharing its expertise in aluminum smelting and oil and gas production in particular. Since Russia is a huge country with plenty of natural resources of its own, it will be interesting to see how well it trades with Sub- Saharan Africa, the home of many natural resources. http://preview.tinyurl... http://bbc.in/WGybJH http://bit.ly/WGybJJ http://bit.ly/XEVwtI
Japan is a wealthy country raising its economic sights in Sub- Saharan Africa. Since Japan doesn't have much in the way of natural resources, Sub- Saharan Africa is offering some of their natural resource abundance for trading with them. Japan contributes technical knowledge, trading and shipping expertise and hard currency for infrastructure development, agricultural improvements, construction of health facilities and various efforts done from grants. http://preview.tinyurl... http://bit.ly/XIXUj9 http://bit.ly/14tWi3O http://preview.tinyurl... http://bit.ly/XIXUjb
Africa has a lot of potential to develop renewable energy industries and projects. North Africa has the most potential for solar power. Sub- Saharan Africa has great prospects for many different kinds of renewable energy either large- scale or small- scale. http://bit.ly/WVspnJ http://bit.ly/Tho7sL http://preview.tinyurl... There are a number of energy industry conferences devoted to the topic of new renewable supplies, perhaps too many to mention because the renewable energy discussions are mixed in along with the carbon- based and electrical energy conferences. Here are a few examples: http://bit.ly/WVspnM http://bit.ly/Tho7Jb http://bit.ly/WVspnV http://bit.ly/YmbFXJ
Sub- Saharan Africa's oil and gas sector is on the upswing with many potentially lucrative fields located just a few years ago. Nigeria, a member of OPEC, has been the largest oil and gas producer for many years. Many other countries hope to achieve similar production results in coming years. http://bit.ly/WEgFoB http://bit.ly/UHq4hB http://bit.ly/WEgFoD News about Sub- Saharan Africa's oil and gas sector is expanding at a rapid rate as the situation becomes better known. The news mentioned in this blog entry is only a small sampling of what is now available. http://bit.ly/UHq4hD http://bit.ly/WEgFoE http://bit.ly/UHq6WK
Fresh water in Africa is sometimes thought to be more valuable than oil. Africa needs water treatment plants, pipelines, storage facilities, purification, recycling, desalination and ground water extraction. Private industry might get more involved in the water sector as the countries gain some wealth. http://bit.ly/WEn8zP http://read.bi/116Jfp5 http://bit.ly/WEn6In
There are thick tropical forests in the better watered areas in Sub- Saharan Africa, mostly in the equatorial regions. The timber industry is small compared to other tropical regions in the world such as Brazil and Indonesia. Timber production remains a bit tricky in the tropical regions because conservation of the rainforests is vital to the health of the local economies and habitats. Forest plantations cover extensive areas of South Africa and Zimbabwe. http://bit.ly/12dyL7Q http://bit.ly/Vre55c http://bit.ly/12dyL7S http://bit.ly/Vre3Kr http://bit.ly/12dyLoa http://bit.ly/Vre5lq
Farming can thrive across much of Sub- Saharan Africa where there is enough water directed to crops. An agricultural revolution is underway across the continent resulting in improved crop yields. There is some concern that if too much food is raised for export there won't be enough left over to bring the cost of food down for the benefit of domestic consumption. http://bit.ly/U5fOBW http://aatf-africa.org http://preview.tinyurl... http://preview.tinyurl... http://bit.ly/Xbls06
Population growth in Sub- Saharan Africa has mostly gravitated toward the cities during the last century. The cities have attracted rural dwellers in search for a better economic life. Many of the cities are now undergoing redevelopment in attempts to mitigate unhealthy living conditions, inefficient transport and rampant unemployment. Most of the business investments are directed toward the cities. http://bit.ly/WN02dy http://bit.ly/VRygLI http://bit.ly/WN03OO http://bit.ly/WN02dz
The larger cities handle the most air traffic between Sub- Saharan Africa and the other continents. The airports have grown and modernized with the growth of the cities. Progress is being made in improving air travel and air transport across Sub- Saharan Africa. http://bit.ly/YBnQQC http://bit.ly/WNailY http://bit.ly/YBnQQD http://bit.ly/WNaim0
Poverty is pervasive across Sub- Saharan Africa. It is probably most noticeable in the cities where slums cover the landscape. If the African Renaissance continues to gain traction in coming years, the rates of poverty should decline. http://bit.ly/YBuVAE http://bit.ly/VHljaw http://bit.ly/YBuVAK
The high levels of sovereign debt are one major cause of poverty among the nations of Sub- Saharan Africa. Some progress has been made during the last decade on alleviating the debt crisis with some governmental assistance. The HIPC Initiative is perhaps the most effective government debt program. The fresh prosperity generated from the economic workings of the African Renaissance will hopefully produce lower debt burdens in the future. http://bit.ly/12repYS http://bit.ly/WuiCpx http://afrodad.org
Corruption tends to spread poverty by re- routing the natural, legal flow of monetary transactions. There are ongoing efforts to corruption across Sub- Saharan Africa. Those efforts might have a chance for greater success so long as the countries continue to work on effective governance. http://bit.ly/WumM0y http://bit.ly/12rhfNx http://bit.ly/WumJBZ http://1.usa.gov/12rhdFj
It was mentioned in an earlier entry that the wealthy Arabian Gulf countries are re- directing investments into poverty- stricken areas of Sub- Saharan Africa. The Gulf countries have small amounts of fresh water and farmland. They also have a desire to diversify their economies into manufacturing and away from complete dependence on oil and gas production. Sub- Saharan Africa can provide them with food and various raw materials for manufacturing. http://bit.ly/VCuOCC http://bit.ly/12rodC7 http://gaic.kcorp.net http://preview.tinyurl...
We are reminded by our new Secretary of State that China is heavily invested in Africa. http://bit.ly/WPkuun As was mentioned before, China invests in Africa for its raw materials in particular. China is motivated to feed its millions of people and gain access to raw materials to support its manufacturing sector. China is therefore interested in Sub- Saharan arable land and productive mining districts. China is working on building infrastructure across Sub- Saharan Africa with emphasis given to building new railroads and rehabilitating the older ones. The railroads will provide access to the farms and mines from the port cities. Sub- Saharan Africa gains with the infrastructure building and having a demanding market for its exportable goods. http://bit.ly/VEydAJ http://www.sinogate.org http://bit.ly/WPkuup
Copper is often mined in areas associated with gold deposits. Consequently, copper can be found in Sub- Saharan Africa in generous amounts. The Copperbelt of Zambia and Katanga has historically been the region with the most prolific copper output. Since the price of copper is usually directly correlated with global economic growth, any such growth is good news for the copper producing areas of Sub- Saharan Africa. http://bit.ly/TA2SAx http://bit.ly/YHEONl http://bit.ly/12xbFch http://bit.ly/YHEQF5
Investors can find a tremendous amount of information about the African business scene by searching the phrase "African business news" on the internet. There are many African publications catering to African business readers. Investors can search for many leads on companies doing business in Africa by using the search name "Africa" in the search boxes for the stock exchanges located in the United States, Canada and Europe. Investors can check with the chamber of commerce for African related business ideas. http://bit.ly/YIwU6m Investors can check with any of the stock exchanges located in Africa to get a good idea of business being done in the various countries. http://bit.ly/TSfjtN Investors might decide that is simply easier to do business with an African related exchange traded fund, a closed end fund, an index fund or a mutual fund found in the listings on the major financial news websites. Or perhaps a depositary receipt found in http://www.adr.com will fit an African related investment objective.
So what might an ordinary American investor make of the African Renaissance? The phenomenon appears strong enough at this point in time to provide for a lively market of trading, investing, importing and exporting. If it continues to gain momentum, it will feel as natural in a few years to talk about Emerging Africa as it is now commonplace to talk about Emerging Asia or anyplace else. It will need more strength and universality to fight the famous problems of disease, hunger, poverty and despair. Extraordinary efforts, both public and private, are being made to tackle those challenges. It is hoped that they turn out to be very successful. http://bit.ly/TSz0l7
You are welcome, Schumpeter_1. And thanks go to you for mentioning Ryan Hoover's helpful African investment resources article linked at the top of this blog. I'll re- link it here as a reminder for any reader making progress going through this rather extensive blog. http://seekingalpha.co...
An update is provided here about America's Doing Business in Africa campaign. It will be interesting to see if the campaign achieves great success in American and African business development in tandem with Africa's economic aspirations. http://preview.tinyurl...
As Americans gradually become more familiar about doing business in Africa or otherwise investing in it, attending a trade show devoted to that topic seems to be in order. Chicago will host a trade show about Africa in October. http://preview.tinyurl... http://africacncl.org
New compilations of information are being published as the evidence for Africa's resources and economic value accumulate. One such product is a new soils atlas of Africa which will be helpful in determining how best to increase the value of the agricultural sector. http://bit.ly/Ya9VoQ
Regarding the coasts, posing the question: Which coastal city and- or coastal strips have a good chance to act as Africa's trading window to the rest of the world given the circumstances? To put it another way, which coastal stretch has a good chance to be the next Cape Town? Kenya, one of the many coastal nations, has ambitions to act as the economic hub for most of East Africa. It looks like they have a decent chance to fill that role according to some interesting research I've come across.
In that sense, it is very unfortunate that Portek International has been delisted and acquired by Mitsui. They were a nice stock to play ports in Gabon, Algeria and a dryport in Rwanda. It seem that ICTSI also has a port terminal in Madagascar. But that is only one African terminal of the many port terminals both ICTSI has.
Likewise for DP World with operations in Djibouti, Mozambique, Senegal, Algeria and South Africa.
By the way, I do not know whether somebody already has it noticed, but APM Terminals, one of the largest port operators in Africa, CURRENTLY operates port terminals solely in West Africa => nine ports in eight West African countries http://bit.ly/R4vi6o
Although it already has inland service operations in 12 countries from East Africa (including Kenya, Uganda and Tanzania, as well as parts of Congo and Zambia)
It eyes Mombassa for their expansion into East Africa, i.e. expansion in port terminals. Logistics Container Centre Mombasa (LCCM), part of APM Terminals Inland Services, already is in operation since 1997.
Off record, some other trucks which I found often along the road in Uganda (building a tarmac road to Rwanda): SBI International Holdings AG, i.e. a Swiss listed construction company:
One of the more thought provoking items you shared, Jon, in my opinion, is the global map of shipping routes portrayed by volume in your article on Sri Lanka's economic outlook. http://seekingalpha.co... While Kenya is not right on the beaten path of trans- global shipping, it is not too far way from it. It's developing its ports to tap into that traffic. Kenya also has a huge resource rich hinterland of neighboring landlocked countries with potential items for trade going through Kenyan ports to the outside world. Kenya's geographic position must be one of the investment criteria taken into account by the business community. http://bit.ly/ZQiEMd http://1.usa.gov/12AJlmV
Could be a niece way to play Mozambique (and Angola). Operations mainly ride the commodity wave, i.e. the firm's most considerable investments are in Congo, Zimbabwe, Equatorial Guinea, Angola and Mozambique.
Includes majority ownership in FastJet, a low cost airline backed by EasyJet's Stelios: http://bit.ly/YmxeKR
Singapore's shipping industry is in a good position to really thrive in the years ahead partly because the more undeveloped countries within Singapore's easy reach are keen on developing their economies. Papua New Guinea is one example to Singapore's east. Eastern and Southern Africa provide other examples to Singapore's west. http://preview.tinyurl...
First, at this point there is NO PURE PLAY on Africa listed in the group. It' scattered all over the place between ODET-BOL-PTER-CBDG-ART... (all listed in Paris). The Socfinal part (Fabri) is mostly related to SE Asia.
FORE, while one of the tiniest is one the purest play.
Because of the magnificent cross-holding, putting a valuation on any of those firms is a FANTAISY for now, but that will be improving in the coming months-years.
Interesting things you are saying. Can you elaborate somewhat more on [the] "last few months something, on the surface minor, but of CRITICAL important happened, so we could expect SERIOUS CHANGES in the structure of the group this year....which means that at some point, African-trading activities could listed in a new company within 2-3 years." ? Perhaps a few links ?
Do you expect that " Bollore Africa Logistics" which already has it's own listing in West-Africa, will undergo an IPO overseas ?
Interesting stocks you are mentioning. I thought there was also a separate (Luxembourg) listing of the African business by Socfin: Socfinaf ?
Under the same entities, you find ANYTHING, Africa-trading as well as HAVAS, VIVENDI, ITALIANS BANKS, LI BATTERIES AND BLUE CAR....plus all the small stuff left of over from Rivaud ...and I forget many.
Even FORE that controls Sitarail I think owns a critical piece of one of the key holding, making the valuation a headache.
Socfinal-Socfinasia-So... controlled by H Fabri which is a partner of VB but VB is only a minority shareholder there. Socfinaf is about Kenya if I remember, marginal in comparing to the trading business of VB in Africa.
Socfin was listed in Belgium and Luxembourg and has been delisted (split between VB and HF).
ANYWAY, I think the activity on many of those VB entities are for those (maniacs or fans) following VB for 20-30 years a hard evidence something is changing, with his sons getting more in charge, simplification of the structures per type of business in order to raise equity thanks to high valuations of "pure plays".
If I am not mistaken, within 9m-12m, it should be clearer.
My cup of coffee is Mongolia (my exposure to the local market is at par with my exposure to the VB companies), not Africa which I think is a 50 years shooting range while Mongolia should deliver much more within 10.
Some East African countries have a good chance to become emerging economies in ten years depending on circumstances. The coastal countries of Kenya, Tanzania, Mozambique and Djibouti will have much better trading links to the inland hinterland countries in several years. Djibouti, Somaliland and Puntland are right on the main shipping lanes between the Suez Canal and Singapore. Ethiopia, Uganda and Rwanda are growing at a fast clip right now despite their landlocked positions. Both the coastal countries and the inland countries are expected to continue their economic booms as the trading and communications infrastructures get built and as economies become more diversified and integrated. East Africa has the advantage of being that side of the continent facing the richer, resource hungry countries of Turkey, the Gulf States, India, China, Japan, Taiwan and Korea. Australia invests a lot in East Africa, too. East Africa is an interesting investment destination.
The eastern half of Africa is taking some constructive steps to bolster their economies through trade and regional integration despite the common roadblocks. Eastern Africa will become even more interesting when more trading links get built and established. http://bit.ly/Z2Acma http://comesaria.org http://bit.ly/11nMWaY
Kenya already has a major port at Mombasa servicing the country's trade with the rest of the world. http://bit.ly/12kl4Cq Kenya is now working on developing a new corridor connecting neighboring countries with Lamu, another Kenyan port. The corridor will consist of a highway, oil pipeline, railroad and a deepened water port. The corridor will enable the development of the dry northern half of Kenya and neighboring portions of South Sudan and Ethiopia. South Sudan is noted for its oil wealth; Ethiopia has some mineral wealth; both are concerned about their landlocked status. It is hoped that Lamu can keep its appeal to tourists with the development, however. http://bit.ly/XzICy3 http://bit.ly/12kl4Cv
Besides the improvements being made at the all- important seaport at Mombasa, Kenya is improving its railroad network from the port to elsewhere in the country. http://bit.ly/11Xzytp http://bit.ly/XBLSYL
Nairobi is the largest city in East Africa. The metropolitan region is thriving on new business so much so that the new city of Konza is now being built in the area. If I might hazard a guess, the growing pains will necessitate a freeway conversion of the highway going from Nairobi down the slope to Mombasa one of these years. Nairobi will need quick access to the ocean trading routes. http://bit.ly/14eI4Ui http://bit.ly/V5J48p http://bit.ly/14eI4Um http://bit.ly/V5J4Ft
To build up Nairobi and work on the nation's economy and infrastructure takes a fair amount of energy. Kenya is in the process of diversifying its power resources away from hydroelectric supplies because of occasional low water levels from draw- downs and droughts. Kenya is expanding its power supplies concurrent with its other economic endeavors. http://www.energy.go.ke http://bit.ly/Vbd7M9 http://bit.ly/10ZomML http://bit.ly/Vbd7Mb
The regional oil and gas industry is apparently large enough now to hold an international exposition about its development potential. http://oilgas-africa.com
There are more discussions and information about Kenya's oil industry as it becomes better known in the international news. http://bit.ly/W2RVZX http://bit.ly/10huO1c
There should be more investment opportunities in the region as the years go by. The United States government is acting on this notion by setting up a commercial dialogue with the countries in the region. http://bit.ly/12kCu1L
Kenya is famous for its tourism. Safaris to see Kenya's wildlife have been going on for over a century. The country has many national parks and wildlife preserves attracting the sightseers. http://bit.ly/14jiAEA http://bit.ly/11Xvzgn http://bit.ly/14jiAEC
Tanzania is gaining fame in recent years for its deposits of rare earths, gold, uranium, gas and oil. http://bit.ly/101s5Zt Tanzania has historically been famous for its tourism. http://bit.ly/Tejey4
Indeed they have a "track record" on tourism and their port of Dar es Salaam seems very popular with port terminal operators. But currently there some things that are becoming burdensome to business :
It looks like much of Tanzania's revenues are being directed toward railroad development. Rail lines are being revamped and extended in keeping with the East African Railway Master Plan. A new rail line will connect Tanzania with the two landlocked countries of Burundi and Rwanda which are still recovering from the civil wars of a couple of decades ago. Another rail line will connect Tanzania with the oil rich countries of Uganda and South Sudan. Trade from these countries will probably increase and be funneled towards Tanzania's main port at Dar es Salaam. That port is currently being expanded to handle the additional traffic volume expected from the railways. http://bit.ly/Uy5puU http://bit.ly/XxtXIV http://bit.ly/Uy5nDh http://bit.ly/XxtXIZ Details about the new rail lines are found with downloadable pdfs at this link. http://bit.ly/Uy5puV
The increase in taxes might prove to be worthwhile when the upcoming projects bring forth the promised prosperity. It looks like one of those wait and see situations.
A number of companies target Tanzania for its promising geologic position on the Tanzanian craton and nearby mountains of the East African orogeny. The companies might report in their financial findings to what extent the new tax law has effected their outlooks. http://bit.ly/XpReWX http://bit.ly/UasmFP http://bit.ly/XpReWZ
The East African Community has its headquarters in Arusha, a city in a scenic region not far from the famous Mt. Kilimanjaro. The EAC works to integrate governmental and institutional functions in Tanzania, Kenya, Burundi, Rwanda and Uganda in order to create economic efficiencies between them. http://bit.ly/15aV9P8 The EAC is making diplomatic arrangements with other countries besides the United States in hopes of attracting additional foreign investment. http://preview.tinyurl... http://preview.tinyurl... http://preview.tinyurl... http://preview.tinyurl...
Sorry to bother you guys again, but ...I have another link to some condensed country reports made by the Rabobank (i.e. reports on Ghana, Nigeria, Tanzania, Rwanda, Angola, Botswana, South Africa, Cameroon). They are quite recent, i.e. Ghana report is from August 23, 2012
By the way, there are also country reports on Mongolia (Sept 2012) and Sri Lanka (two versions: Sept 2012 and Jan 2010), Bangladesh and the Maghreb region (Algeria, Marocco).
The BBC World Newsalso seems to do a god job with their country profiles. They are all updated quite regularly: http://bbc.in/UYRDQ7
Regarding Djibouti, Somaliland and Puntland, the storied lands of myrrh and frankincense: These are the Sub- Saharan countries that are actually facing the busy trans- global maritime route. Their littoral is on the strategic Gulf of Aden between the Red Sea and the Arabian Sea. The maritime route has connections northward to the Suez Canal, recently deepened to accommodate some cape- size vessels. The maritime route connects traffic eastward to the Malabar Coast of India, Sri Lanka and Singapore, with a side detour to the oil rich Gulf States. Djibouti has ambitions to become an important stopover on the maritime route. Dubai World has a port there. The United States military is stationed there. And Djibouti is the main port servicing Ethiopia, which makes up the country's hinterland. http://bit.ly/VkdY9Z http://bit.ly/RbiLyf Somaliland is a region needing to be explored for valuable minerals. Its main commercial asset must is the deep water port at Berbera. http://bit.ly/VkdYqh Puntland is known for its fisheries and oil deposits. Its port at Bosaso is becoming more important for Arabs and Indians doing business in nearest Africa. http://bit.ly/RbiNWS The three countries are considered to be underdeveloped; investors will probably need to take a very long range view of their situations. A reduction in maritime piracy should go a long way to facilitating their development and awakening foreign investment. http://bit.ly/VkdWyD
Oil exploration and drilling is just getting underway in Puntland. This situation appears to be the most actionable one for investors at the present time. http://bit.ly/WxNJjc
I guessing that Puntland and Somaliland will keep their loose affiliations with Somalia in the foreseeable future because, after all, they are ethnic Somalis. I imagine they prefer their autonomy because that seems to be working for them so far without having to hassle the complications of unrest in Somalia proper. Their neighbors in Ethiopia's Ogaden region are ethnic Somalis, too. The politics of that situation helps to make investing efforts in the Horn of Africa problematical. http://bit.ly/VX2Pwk
It looks like Somaliland might open up its gas and oil reserves for development soon. http://bit.ly/12HPWMy http://bit.ly/TeCSeK The country is known to have some mineral wealth such as coal, base metals, gemstones and rare earths. Interested parties are just beginning to scratch the surface about these. http://bit.ly/12HPWMA
I think you are really making some excellent points here. Both on Ethiopia and on Somaliland. It has occurred to me that many, many non-resource companies are moving toward Ethiopia (e.g. Diageo, Visa, Bollore). Economic activity is rapidly increasing. This has much to do with a very large Ethiopian diaspora. Mostly because home remittances. And let us not forget, the country's booming potash industry e.g. Allana Potash (ALLRF.PK). Djibouti, a stable country, might be the perfect way to play Ethiopia.
And Somaliland might be an excellent way to play Somalia. It is absolutely non-comparable to Somalia itself: http://bit.ly/ThIlA1
I would strongly recommend checking the related BBC TV-series "Indian Ocean with Simon Reeve" in which he travels from Somalia to Somaliland (series also include Sri Lanka and Bangladesh in a different episode)... If not alone, for the wheelbarrow full of dough.
We are essentially studying the Land of Punt consisting of Yemen or Arabia Felix, Ethiopia and the lands of the Somalis. http://bit.ly/YBMAeI It will be worthwhile to see if the three regions trade more closely with each other in the future. A couple of examples: The Bridge of the Horns might be built with Arabian oil money. http://bit.ly/Ti53Z3 Ethiopia is trading more out of Somaliland's Port of Berbera. http://bit.ly/TgRJaD http://bit.ly/Ti527a http://bit.ly/TgRJaG China, America, Europe, Arabia and India are taking an active interest in the Land of Punt. There has to be good reasons why.....
The Port of Djibouti will be expanding its infrastructure soon. Business must be good due to its strategic location, deep water port, free trade zone and better connections to its Ethiopian hinterland. http://bit.ly/VXUkB6 http://djiboutifz.com http://bit.ly/WI7PLx
Allana Potash Joins the Ceremony of Tadjourah Port Construction Start
Marketwire - Dec. 18, 2012 - Allana Potash Corp. (ALLRF.PK) wishes to express its congratulations to the Djibouti Ports and Free Zones Authority (DPFZA), the Governments of Djibouti and Ethiopia, and the people of Tadjourah Region in Djibouti, on the official completion of financing and start of construction of the new bulk port at Tadjourah, Djibouti.
The port construction at Tadjourah is significant for Djibouti and its much larger neighbor, Ethiopia. The new rail connection between Tadjourah and northeastern Ethiopia will not only open up a broad stretch of country for development but will enable another trade route between the two countries. The new railroad is part of a larger effort by Ethiopia to expand its railroad system in various parts of the country. http://bit.ly/YgU421 http://bit.ly/10jOAsH
I know about Allana (ALLRF.PK) but I used to really be interested in Ehtiopian Potash (ETPHF.PK) (FED.V) which seems to have seen its price drop through the bottom.
The way to benefit is to actually come here and directly invest. There is a commodity exchange by the way called the ECX and the government is pushing hard to make coffee its core export.
Djibouti is the busy port most centrally located within the common market of eastern and central African countries. Rail and road links still need to be built within the common market for efficient transport of marketable goods. The common market will make economic progress as those links get built. That will give the Djibouti ports additional business and add to its pressure packed port volume. http://bit.ly/UmvPxS http://bit.ly/Tz0MSp
" Ethiopia is Africa’s second most populated country with approximately 85m people and population growth of 2.5 per cent per annum. It is also one of the fastest growing non-oil economies in Africa with a stable political environment and growing personal incomes. "
" The UK’s Diageo last year snapped up Meta Abo Brewery, maker of the country’s number two beer brand Meta, in a $225m all cash deal."
This news site appears to be a good source of business intelligence for the Horn of Africa region including Ethiopia and Kenya. http://www.hananews.org
Ethiopia is looking forward to selling greater exports of sugar, biodiesel and coffee as well as potash. I drank some Ethiopian coffee from one of the specialty grocers a few months ago; it has a hearty flavor and aroma. http://bit.ly/10jQDNc http://bit.ly/YgWeyt http://bit.ly/10jQBoA
Ethiopia also has some gold. Exploration for gas and oil is now underway mostly in the Ogaden Basin near Somalia but also elsewhere in Ethiopia. http://bit.ly/10jUObQ http://bit.ly/Yh0D4t
I know the firm. Quite important to know is that Feronia Uganda Limited is not associated with them (as I always mistakingly thought).
I believed that SA author John Polomny was also watching this stock ("As far as other countries in Africa I like Banro (BAA) in the DRC. I also am looking at a small compnay that is rehabilitiating a palm oil plantation that used to belong to Unilever.")
- numbers wise, it is understandable still to make a profit, and a bit illiquid, however it also has a low debt/equity ratio (which i am heavily bias towards). most importantly, at around 10c, it is much easier to double to 20c, than say bunge to move from $72 to $144. major risk here is further share dilution may happen.
- seem immune to the political issues in congo. also appears to be looking after the environment and people - very important to me.
I agree with you on the latter matter. Bas Congo is quite safe and doesn't suffer from the anarchy in Eastern-Congo (that only seems to reach television). Though I am still a bit worried (as a big fan of wildlife) It says zero deforestation because of re-planting, but what about those lowland gorillas ?
I am big fan of investing in agricultural lands and even more keen on frontier markets, but it seems to be a re-occurring worry to me with those plantation companies.
Moreover there is a word of precaution. Each time Congo troubles start, they start locally in the eastern part, i.e. the rise & march of a new rebel group. Recently rebel group M23 conquered Goma, while the UN wasn't prepared to do anything. Not even defending local civilians. M23 said it wanted to march to Kinshasa (DRC's capital), i.e.. the west. It was only after international pressure on Rwanda and Uganda(!) that M23 didn't do it and even left Goma.
Might be valuable to compare landprices on a per acre basis. Yesterday I read that Belgium/ Luxemburg listed palmoil plantation companies were very much cheaper than Singapore. And yes, there is also (at least 1) an Asian listed plantation company in Belgium/ Luxemburg (besides African plantation companies).
If the fighting in eastern Congo ever stops so that development can occur, the agricultural resources of Bas- Congo might find their way to the East African markets. What is missing is the proposed rail link between Kisangani, at the head of navigation above the Congo River by river barge upstream from Bas- Congo, and Kasese, at the end of the rehabilitated rails in western Uganda. The fighting is going on in the Kivu region in eastern Congo where the proposed rail link for the Northern Corridor is supposed to be constructed. http://bit.ly/VfdcOq http://bit.ly/10IwXnD http://preview.tinyurl...
Off the record....did I ever told anyone that I fell in Congo River 50 meters a way from a couple of hippo's, while trying to follow an elephant herd. It actually has a strong current. Talking about in-depth market research...
Tanzania's island of Zanzibar is getting bad press on the rise of Muslim values on the island http://on.ft.com/YWAAo9
One of my most favorite parts of my 5 week trip from South Africa to Egypt in 1995 was time in Zanzibar, Mitu's spice tour, the food market with kebabs and sugar cane juice, Sambusa's Two Tables restaurant (literally a restaurant of two tables on his home's patio), the old city. Really nice place. Feels like the author hasn't been there. Couldn't write the way he did if he had. Yet, its the FT and it will get international attention.
Zanzibar shares a lot of cultural affinity with its parental country of Oman. http://bit.ly/Vm5INo http://bit.ly/10ESlEX http://bit.ly/Vm5Lce The Omani role in Zanzibar happened many years prior to Zanzibar's union with Tanganyika in 1964, forming Tanzania.
No problem Jon. I had been thinking of writing a follow up as that story is now almost exactly two years old. There have been a lot of positive changes and the investing landscape is absolutely phenomenal. It is so disconnected with what is happening elsewhere that the story of Western troubles does not even register here at this time. Much of Sub Saharan Africa is also in the midst of a transformation and economies are really booming. Coca Cola is here now and working hard to expand its market share with a huge advertising campaign. But that is not why you or anyone else would come because it is not possible to participate in the expansion via shares of Western companies in a meaningful way as the global giants success in one region can be flattened out by losses in another. No...you really need to be here in person with your feet on the ground directly making use of your capital to take a share in any one of the small growing companies that are showing explosive growth. Candy and confections are a perfect example as are beauty care products, publishing, entertainment and light manufacturing as examples. I know of a gal who started a small chewing gum factory five years back with one small machine from China. She absolutely dominates the domestic market of 82 million people today and is expanding into chocolates. She is one of the first in the country doing so and looks to be a great success. Where else on earth is that dream still possible?????
Sounds like a flourishing frontier market. Looking forward to more writing and comments from you.
My personal travels are unfortunately booked up through August... but after that I'm open to suggestions as things develop... and depending on employment status, I may be a bit more beholden to travel more to Asia for the time being.
That said, I would also like to hear more about stories such as the woman who started a chewing gum factory and now dominates the market. I go to conferences from time to time where there are people interested in these types of stories and investing in people with this kind of success.
One issue I've heard is a challenge for Ethiopia's development is that it is landlocked and must go through either Somalia, Djibouti, Eritrea, or Kenya to get port access. Is this issue overblown? How is infrastructure development? (roads, rails)
I would say the issue of being landlocked is perhaps a bit overblown as there is good cooperation and strong economic ties between Ethiiopia and Djibouti for example. A rail line partially funded by the Chinese is being reestablished there now, roads are being upgraded between the two nations and a significant investment is underway by Ethiopia to expand capacity in Djibouti ports and container facilites. One of this Ethiopias most important exports is going to be power long into the future and the regional nations will all benefit. The neighbors are already connecting to the grid and are supportive of the hydroelectric projects where they do not have means of their own to build a capacity. Djibouti meets 60% of its power needs through a new transmission line. See this article for a bit more background.
Frontier investing is a good term Jon. I think this may even define why most Westerners are missing the action here while Chinese and Indians are signing off on all the juicy contracts at a rate of 20 to 1.
You just cannot participate here by sitting in a New York office and pushing buttons on a computer. There are very few publicly listed companies in most of Africa actually especially as compared to the developed world. No easy means are available to add to a pension plan or investment portfolio so almost everyone is going to miss out on the growth story.
This is a place where much of what is happening is in the incubation stages and so the real action is much more personal and in your face. It is a market for younger people with their own capital, a little ambition (and lots of patience).
I hear stories almost daily from others about what they are doing and am usually amazed at how well it has worked out. Even guys who are complete screw ups elsewhere are turning a buck. It is because land, labour and power costs are just so low here that there is a lot of forgiveness for those making mistakes and they survive to see another day.
One of the biggest areas of opportunity here and in much of the rest of Africa is "processed foods". Try buying a bag of potato chips in Addis Ababa for example and you will see what I mean. There are no MacDonalds either and precious few chain stores. Everything is Mom and Pop.
Pizza and burgers have just arrived here in the last few years and overnight became some of the most popular dine-out foods. Fast food is still virtually unknown and yet the term "take-away" has still managed to creep into the local language and the idea has taken hold. Fried chicken outlets have yet to make an entrance. I have only seen one so far but I am confident they will grow explosively once someone starts building them.
I just saw the first real car wash the other day. It was full. Laundries and dry cleaners are still in their infancy yet are so popular and in demand that you wait in excess of a week to get your clothes back. One of the biggest areas of opportunity is in entertainment. This is a nation of youth where the median age is 14 years. Games, pool halls, arcades, toys and cosmetics for young women are huge growth areas. Just by paying simple attention to the demographics one could make his fortune.
There is a fast developing middle class here and a huge Diaspora with strong connections to the West that live here. Consumption is rising dramatically. Shops and cafes are often filled to the last chair with the most successful being those that have emulated Western marketing models.
But you can't make money on it unless you do a little serious research and just get on a damn flight and come here. Ethiopian Airways offers direct non-stop flights daily from both Toronto and Washington DC and will soon have a fleet of ten 787 Dreamliners on offer.
They are the only airline in Africa with direct links to North America incidentally and that in itself should indicate to everyone the growing importance of this region.
Without giving it too much thought I can say without reservation that Ethiopia is now amongst the most strategically important nations to US interests in Africa and the relationship is growing stronger all the time. This country is a lion in the region and a good friend to the West.
Abegaz... great posts. If you keep it up... I'm going to wind up buying a plane ticket to Ethiopia by mid-2014 or earlier (which I wouldn't have thought 10 days ago).
A happy, healthy and meaningful 2013 to everyone in this chat room, and your families, (and even to the people not in this chat room who just don't know how good it is ;-) Jon
Well thanks Jon. Good to hear you may be coming over at some point. It is not all roses here though, let me assure you. This is not the West by any stretch so be sure to get all your vaccinations ahead of time, get your dental work up to date and carry some good health insurance.
There are crazy things about this place that drive some people nuts. We don't have phone books for example and there is no yellow pages online or in print.
There is also no mail delivery and only wealthy people have box addresses. Streets do have names but nobody uses them so locating people and places is hit and miss but a good driver can usually get you near if they have a landmark.
Business's and homes also do not have numbers posted on their door as is common in the US. Nor are there many traffic signals, crosswalks, sidewalks or public benches to sit and rest. It is a lot to adjust too.
Traffic especially is interesting as pedestrians do not have the right of way. So those are just a few extra thoughts to help you understand why the cost of doing business for those who engage is so low but also why it can be maddeningly slow.
JS, Happy New Year to you and yours and all the bloggers here. Thanks also for all the info and time spent updating and keeping us informed. To all the bloggers, thanks for the great comments and for furthering my growth of knowledge.
I am watching at the window to the chat room. Nothing to add but say thanks for the great insight from you all. Abegaz thanks for the boots on the ground perspective.
Yes Happy New Year to each one of you and all the followers.
Thanks everyone and may I wish you all a happy New Year too. If anyone is interested in hearing more about this part of Africa I would be happy to oblige with added commentary.
For those of you who are smokers and also enjoy a drink (and might be coming over for a visit) I have terrific news. Beer is 60 cents a bottle in restaurants and a pack of filter smokes goes for 50 cents. Very good hotel rooms begin a 65 dollars per night.
Housing is shockingly inexpensive compared to home. Foreigners can get very decent digs beginning at around 150 dollars per month. I have a four bedroom place, two kitchens, two baths with white marble floors throughout plus servant quarters included for that price, just to give you an idea.
Fresh fruit and veggies are available year round for mere pennies. The services of a porter to carry groceries, luggage, building supplies or whatever starts at 15 cents per load if it is near home. Average daily wages run about 1.25 for low skilled folk but even a fully qualified engineer costs just 350 dollars per month if you have the need for one.
One of the fascinating aspects of this country is that it is Orthodox Christian for the most part. There are churches absolutely everywhere you go and the people are quite devout compared to home. This is also a gun-free peaceful culture and violence is quite rare.
Despite the limitations around mail services and street address's the country is well connected. Virtually everyone has a cell phone and internet is usually available in even the smallest of villages. The new Commodity Exchange handles four products at the moment but is focussed on coffee.
Banking services are currently limited compared to the West which is problematic at times. There is no Debit system nor do shops accept Visa and Mastercard with the exception of some tour operators and the biggest hotels. ATM's meanwhile are still sparsly distributed around the country but that is changing fast. These can be used to dispense funds off most networks that accept Visa or Masercard or the new Debit-Visa cards.
Happy travels to anyone thinking of coming over for a look!
Sub- Africa has two emerging economies. The first one, South Africa, has been well known for a good number of years. The second one is Mauritius, the island country situated on the main sea lanes connecting South Africa with South Asia and Southeast Asia. Mauritius is a country known for its economic freedom. It is often portrayed as an economic example for the struggling African countries to emulate. The country's economic expertise has recently been tapped for use as a conduit for Asian, European and American countries to indirectly invest in the Sub- Saharan region. http://bit.ly/WmEmkd http://bit.ly/WmEjoE http://bit.ly/11651ZP
Here are more in- depth looks at Mauritius' effort to serve as a financial middleman for the rest of the world regarding African investments, especially Sub- Saharan African investments. http://bit.ly/W7X5nI http://bit.ly/WP8jd4 http://bit.ly/W7X3fo
Mauritius has a well- rounded economy other than the overseas financial conduit business. http://bit.ly/VSbBQO It takes a particular interest in what resources the surrounding Indian Ocean has to offer with its dependent island territories. The country has kept its claim to the Chagos Archipelago located north of Mauritius toward India. The archipelago, due to its mid- ocean position, is home to an important American military base on the island of Diego Garcia. http://bit.ly/13SLNpy http://bit.ly/VSbBQR
Mozambique is a coastal country with a promising amount of natural resources available for trading. It is in the process of arranging itself as a trade corridor for its northwestern inland neighbors, Malawi and Zambia. Malawi and Zambia are better known for their mineral reserves. The northern Mozambican ports of Nacala and Beira are now just recently in a position to receive them for export.
There is some concern about economic nationalism in Mozambique and Malawi. That concern should best be weighed against their economic capacity to achieve prosperity for the long run. http://reut.rs/RACoQx http://bit.ly/VvfVTa
Mozambique has a developing mining sector offering gold, aluminum, iron, cement, gemstones and, perhaps most importantly, coal. There are some other geologic resources such as the mineralized sands along the ocean shore yielding titanium from ilmenite. http://bit.ly/XAYaXB http://bit.ly/WloIVX http://bit.ly/XAYcP8 http://bit.ly/WloIVZ
Malawi now a railroad lifeline to the deep water port at Nacala. Nacala is favorably situated opposite of Madagascar about midway between the Kenyan ports and the South African ports. A slide show with page navigation arrows showing a project map is viewed at this link. http://slidesha.re/XcQmYb The rail line between the port city of Beira to the inland town of Sena and then beyond to Moatize has been rebuilt. It is important for the coal transport coming down from the Moatize area for export. Work is being done to connect Moatize northeastward into Malawi with a new railroad. An existing railroad from the town of Sena northward into Malawi is being rehabilitated. Malawi will have a couple of more connections to the ocean going through Mozambique. http://bit.ly/106ZfrR http://bit.ly/XcQkQ1 http://bit.ly/106ZfrT
Northern Mozambique will have improved business with the new railroad capacities. The Port of Beira will share in the business expansion. http://bit.ly/UB7eqY
Malawi provides the transportation corridor for neighboring Zambia. There is a new railroad connecting the two countries which, by extension, enables Zambia to more efficiently trade overseas via the rail line going to the ocean port at Nacala. http://bit.ly/TFuPI7 http://bit.ly/VvxMt2
In recognition of Beira's resurgent economic outlook, with its improving linkage with Malawi, Zimbabwe and Zambia and coastal oil resources, the city is playing host to an international shipping conference. http://bit.ly/VGinrY
Zimbabwe has been working on a economic comeback with some success in the last couple of years. Hyperinflation there has been halted with the adaptation of foreign currencies several years ago. http://bit.ly/Syhhfu http://seekingalpha.co...
Zimbabwe has been recently reconnected to the ocean port at Beira, Mozambique with the re- opening of the railroad from the border at Machipanda, Mozambique near Mutare, Zimbabwe. http://bit.ly/VLaWO5
There are many news sources available regarding the threat and actuality of Zimbabwe's nationalization of resources. The news will need to be monitored for any investor interested in participating in the country's progress.
The reconstructed railway connecting Harare, the capital of Zimbabwe, and the ocean port at Beira, via Mutare, must be significant. The rail line was closed for many years due to damages inflicted upon it in the 1980s Mozambican Civil War. It represents a key central corridor link within the Southern African Development Community of nations. If there is to be a recovery for Zimbabwe, the revived rail link to ocean trade will help. http://bit.ly/13f0nas http://bit.ly/13cSd3w
You really should come on over Valley Boy. Take the legendary trip from Cairo to Cape town for an eye opener on the state of the continent. There was a popular book by that title so I will post a link. Maybe you will pick it up for a good read and some extra insights.
One thing I will say is that travelling here is not nearly as difficult as some portray it to be. It is nowhere near as dangerous as others suggest either. There are so many misconceptions it is aggravating to those who actually live here. It is meanwhile also an incredibly low cost place to visit (especially if you stay away from the big tourist attractions).
I recommend Thorntree travel forum as a site you will want to visit for current up to the minute information on all aspects of travel there. The site is temporarily down but should be back in a months time.
I like that idea, Abegaz, but I don't get around like I used to, wishing I was young again. So I'm just settling down in this role as a retired armchair geographer, vicariously traveling and marveling as I go along, dabbling in the bounty of information the internet provides. There is so much fresh news on the African Renaissance: more international trading with Africa, new railroad connections, new port expansions, new mining efforts, more wealth spreading amongst the populace, more avenues of communication, more opportunities to tackle the long term problems. Maybe more interest in Africa from American investors?
Sorry to hear you can't make it. You could always try your hand at putting up your own blog centered on the business here though. An armchair guy might be just what gives African interests a little extra boost.
I agree Abegaz. I wish there was an aggregated news feed for investors for every country I go to like Mogi's Cover Mongolia in Mongolia. Aggregated news is something investors need going forward for frontier and emerging markets. It will help them quickly find the useful data they need.
I think American investors will have a hand in Africa's progress eventually. We are more exposed to the news coming from the global emerging markets and a little more from the global frontier markets. But lately in the past several years most of us have been caught up in following one financial crises after another in the developed markets. One has to wonder where in the world is there growth? To help answer that question, here are some samples from another commentator on Seeking Alpha about some Sub- Saharan African countries. http://seekingalpha.co... http://seekingalpha.co... http://seekingalpha.co...
It sounds like that would be an interesting project to work on, Abegaz, regarding Ethiopia's economic prospects, perhaps in the same inquisitive spirit in which Jon devotes to Mongolia's potential. But I think your instablog on Ethiopia is well- rounded and insightful; I couldn't improve on it. There is nothing quite like living within the scene to get a good handle on local business conditions. http://seekingalpha.co... There is actually a great deal of information regarding Ethiopia written in Seeking Alpha by now. http://bit.ly/VJ3y8f;goto_search_tab=
I really have to get around to writing that update about Ethiopia. Did you guys know for example that land leases start at the astonishingly low price of 8 dollars per hectare per annum? This price is up significantly from the 50 cents they were charging back in 2006.
Hundreds of thousands of hectares of good quality Ag lands have already been let to some of the biggest agribusinesses around. Little guys are welcome too though if they have a minimum of 60,000 dollars in capital on hand. The whole continent is in the midst of the biggest land rush since the British (via the Hudsons Bay co.) parceled out Canada in the 1800's.
I mean it is simply UNBELIEVABLE what is happening in Africa now that has hardly even registered in the North American media. Millionaires are being minted here on land that is as close to free as you can imagine and with the lowest labour rates on the planet.
Only a fool could not make his fortune here if he tried.
I know of multiple people planting everything from cotton to apple orchards to Mango, banana and sugar that are already enjoying the fruits of their success. The demand from most of the governments is that the products be destined for export. All of these African nations are working hard to bring in foreign reserves as fast as they can.
Feeding the world is the key. They are simply building on their existing strengths as agricultural nations. A friend of mine from Italy has taken a 500 hectare plot for vegetables and peas. It is South of the capital in a prime growing region that gets more than 1000 milliliters of rain per year.
Just try to imagine for a second seeing that much land devoted to carrots, tomatoes, garlic and pulses. It is pretty much mind blowing. He is making a fortune. Labour rates on the farm are costing him 2 bucks per day but he sells into markets that are competing at 5 to 7 dollars per hour.
Rwanda is importing machinery equipment and construction materials for their development efforts. The country is a source for tin, coffee and tea. http://bit.ly/VRiiQi
With the railway project underway and with new energy developments such a methane source for energizing the power plants to business, Rwanda's trade statistics should improve in the years to come. http://bit.ly/UccsJC http://bit.ly/TPPKIz http://bit.ly/UcctNG
Rwanda is enthusiastic about becoming a technology center which, by virtue of the country's central location, will tend to make it an economic magnet in a region made up of several countries. http://bit.ly/VdRVs5 http://techrwanda.com
Would be very interesting if somebody here on SA could give a closer look on the Advance Frontier Markets Fund, a London listed closed-end fund with a 13.5% discount. Fund of funds dedicating approx 35% to Africa and 9% to cash. http://bit.ly/13oBTwJ
Africa 34.6% Botswana 0.8% Dem. Rep. of Congo 0.9% Egypt 1.8% Ghana 1.3% Ivory Coast 0.9% Kenya 1.6% Mauritius 1.5% Morocco 0.2% Namibia 0.5% Nigeria 9.9% Senegal 1.5% South Africa 2.1% Tanzania 0.3% Tunisia 1.7% Zambia 4.3% Zimbabwe 2.4% Other Africa 2.9%
Got it. Has had some dramatic moves down and up in the past year. Best bets for knowing about it are Wexboy (http://bit.ly/UCBS2c) and maybe John Polomny (http://bit.ly/A2RnRJ). Sent an e-mail to Wexboy. Also might check with Steven Dotsch (http://bit.ly/13vMxSj).
Burundi has achieved relative peace in the past few years. Peace has enabled it to work on its business potential. The upcoming railroad network serving neighboring Rwanda will traverse through Burundi as well. The railroads will help reinforce the promised economic integration of inland Burundi with its East African neighbors. http://bit.ly/TS5udU http://bit.ly/Xu2Bjd http://bit.ly/Uy5puU http://bit.ly/Xu2CDH
The economic development of the East African countries will continue to rely on the maintenance of peace in the Indian Ocean. It is hoped that the Indian Ocean Rim countries can determine mutual agreements regarding their trading activities as time goes by. http://iorarc.org There have been many discussions about the geo- strategic importance of the Indian Ocean. http://bit.ly/W66kVh They vary in their opinions according to who is viewing the ocean from what national standpoint about their commercial supply chains. Many articles can be found using the search terms: Indian Ocean rivalry India in the Indian Ocean China in the Indian Ocean
It turns out that coastal Mozambique and inland Rwanda have the fastest growing economies in East Africa right now. That should be very good news for the port cities of Maputo, Beira, Nacala and Dar es Salaam. http://bit.ly/VRMNs9
Broadband communications between continental East Africa and the island nations are being improved by a state of the art cable network laid on the ocean floor. http://bit.ly/Xt15vh
The northern part of East Africa, the Horn of Africa, to use another term, suffers from periodic droughts. The droughts cause food scarcity with attendant food price inflation. The food scarcity is probably most notable in the reduced numbers of livestock available for market. http://preview.tinyurl... http://bit.ly/WnDq0K One business that does well in regions of little rain is the jojoba business. http://preview.tinyurl...
There are political dialogs being made to create a massive trading bloc covering the entire eastern half of continental Africa. That will essentially involve meshing the existing regional trading blocs: East African Community, Common Market for Eastern and Southern Africa and the Southern African Development Community. If this idea gets finalized, it will be a prime topic for later discussion about what it will turn out to mean for trading partners. http://bit.ly/XJlYo7 http://bit.ly/VeXzZ0 http://www.eac.int http://www.comesa.int http://www.sadc.int
Here's the prime source of information on East Africa's transport corridors and their improvement projects. A tremendous amount of construction activity is underway on the corridors. http://bit.ly/133eZfI
Yes, I can personally recommend Advance Frontier Markets Fund (AFMF:LN). ;-)
It's probably the cheapest frontier markets fund out there - it's on a 9.5% discount to NAV (rallied sharply YTD - but I haven't seen anything more than a 15% discount in the past yr or two), and many of its underlying fund investments trade on significant discounts also. Not to forget frontier market valuations are also pretty cheap in relation to developed markets & to their estimated growth potential. AFMF is also the most diversified fund you can buy, both in terms of its own country allocations, and of the underlying fund allocations.
It's on my list of possible write-up stocks. It actually has a (dormant?) US ticker, but right now I just don't feel up to the aggravation of submitting a foreign stock article to SA editors... Sign up for email alerts at http://bit.ly/MVFfyk and you might see more abt AFMF & other similar opps. in due course.
Blackrock Frontiers IT (BRFI:LN) is the obvious competitor. It's not as cheap (5.8% discount, in line with its recent history) & somewhat less diversified (invests in stocks, not funds), but you get an active stock-picking approach & Blackrock's muscle behind it, so it's pretty attractive also.
Africa Opportunity Fund (AOF:LN) well worth a look also, on a 20.1% discount & looking set to rally for the new year. Which reminds me, the only US frontier markets fund that's impressed me is Market Vectors Africa ETF (AFK:US). The rest are pretty much rubbish - look at their portfolio allocations - not so diversified at best, downright misleading at worst!
There's one other v promising frontier markets fund I'm keeping an eye on - but it's a bit of unusual story, and clearly flying under the radar at the moment. I'll save it for a closer look first, and then possibly an interesting write-up.
Regarding the Comoros Archipelago between Madagascar and Tanzania: Comoros is one of the most undeveloped countries in Africa. It has recently begun to work on a possible economic expansion with its potential for oil drilling and tourism. Perhaps its relationship with the other countries facing the Indian Ocean will improve its spice marketing and increase its shipping volumes. http://bit.ly/VXkfNf http://bit.ly/Umms38 http://reut.rs/VXkhF7 http://bit.ly/Ummqbt http://bit.ly/VXkfNh Mayotte is a department of France and therefore its currency is the euro. It might be an interesting speculation that this circumstance will enable it to become wealthier. But in the present time, a refugee situation is clouding the economic picture for these islands. http://bit.ly/Umms3c http://preview.tinyurl...
Uganda is a tropical country centrally located within the Great Lakes Region and the Great Rift Valley. The region is geologically rich in mineral wealth and fertile soils. This position has enabled Uganda to diversify its economy with lumber, agriculture, tourism, oil drilling and mining. Uganda has a goal to become a regional business hub with its central continental location. Business is making progress toward that end. They should be more successful when the rail links get constructed with neighboring countries besides Kenya and if peace comes to Congo to the west of them. http://bit.ly/WZEmqs http://bit.ly/SBFXYs
East & Sub-Saharan Africa Investing Blog 285 comments
This blog is nascent. I don't know when I'll travel to East Africa, though I have been in the past to Kenya, Tanzania, & Mozambique.
I've also been to South Africa, Zimbabwe & Zambia.
Matthew Wood of Garrison Capital has mentioned he has an oil & gas project going in Madagascar.
Namibia is supposed to have a bright outlook.
I don't know much investing about these regions.
Who does?
Jan Schalkwijk (Africa)
Ryan Hoover (Africa) (good investor bible of Sub-Saharan mutual funds and ETFs by Ryan here, as noted by Schumpeter_1)
Investing Africa (Ryan Hoover's off-site blog) (free)
Mutale Mubanga (Africa; based in Zambia)
Kenyan Investor
Evaluate Energy wrote this good article about Namibia
John Polomny has investments there
Harris Kupperman (on Seeking Alpha) and of the free blog Adventures In Capitalism has spent time there and blogged about it (Mozambique, Zimbabwe, Namibia, etc - go to the site and look it up)
A high quality reader inspired me to start this blog with an e-mail which said:
"If you might be interested in creating an East African blog sometime in the future, I can share some interesting ideas I've read about Kenya in particular. Here is a sample.
An African City Has The Fastest-Growing Luxury Real Estate Prices On The Planet
The main investment thesis for East Africa includes:
1. It has a great deal of natural resources, especially oil and gas, many of them have been recently discovered.
2. It is on that side of the continent facing the teeming millions in India and China.
3. The northern reaches of East Africa are not that far away from the main trans- global shipping lanes which the Somali pirates are trying to interfere with in vain.
4. The United States is increasing its involvement in the region.
Lord's Resistance Army Disarmament and Northern Uganda Recovery Act
By East Africa, I mean that swath of territory encompassing Uganda, South Sudan, Ethiopia, Djibouti and Puntland in the north extending southward to include Mozambique and Madagascar."
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SubSaharan Africa is becoming more businesslike.
http://bit.ly/U5DLa9
SubSaharan Africa is using technological advances to enable prosperity.
http://read.bi/12ukCAK
SubSaharan Africa's coasts will probably receive the most investment flows given their global positions. The western coasts face European and American business centers. The eastern coasts face the teeming markets of India and China.
http://seekingalpha.co...
http://1.usa.gov/WZQxJY
http://read.bi/WZWV3Q
http://bit.ly/YqdvFD
http://bit.ly/WZWXIZ
http://bit.ly/YqdvFG
http://read.bi/Yqek0Y
http://read.bi/UyktdJ
http://bit.ly/VvDYk1
http://bit.ly/U1TDwn
http://reut.rs/UHvt7U
http://stanford.io/Ru4Ovt
http://bit.ly/VwzDxr
http://cogen.unep.org
http://bit.ly/YYpH0B
http://bit.ly/131dDAt
http://reut.rs/Tz5rDR
http://bit.ly/Vl8uOi
http://bit.ly/ZtVNGp
A surprise showing was made by Rwanda, an inland country soon to be connected to the ocean by a new railroad.
http://bit.ly/1165RWL
http://bit.ly/119MX0V;alpha=@
MineAfrica also has an enormous amount of information on the African mining scene.
http://bit.ly/VP39hr
http://econ.st/UWKnaj
http://bit.ly/13iSPUn
http://bit.ly/UWKnak
http://bit.ly/VL1Hjf
http://preview.tinyurl...
http://bit.ly/USMMpd
http://bit.ly/WH5VED
Sub- Saharan Africa can potentially supply much of the uranium the world needs. Niger is the country in the region most noted for its uranium supplies.
http://bit.ly/VOb3c2
http://bit.ly/13l9Iyw
http://bit.ly/ZR5uPx
http://www.au.int/en
http://preview.tinyurl...
http://bit.ly/VvOX0o
http://bit.ly/WZrGAx
http://bit.ly/VvOZW7
http://bit.ly/WLssjQ
http://www.adf.gov
Trading increased more substantially after the passage of the African Growth and Opportunity Act of 2000. The act gave more impetus to more direct trading initiatives and high level discussions.
http://1.usa.gov/TS2Kxb
http://export.gov/africa
http://1.usa.gov/XtYuDK
Some of the trade meetings are reverse trade missions whereby American experts explain industrial and commercial processes to visiting African delegations in the United States.
http://1.usa.gov/TS2LkT
http://1.usa.gov/XtYx2s
http://1.usa.gov/UVfySt
http://1.usa.gov/UfksK3
Partly in consequence, a number of forums for business networking opportunities have proliferated, probably too many to mention. Here is a sampling:
http://bit.ly/ZVvTvz
http://preview.tinyurl...
http://bit.ly/UfkrG3
http://bit.ly/UfksK7
http://bit.ly/ZVvVmW
http://bit.ly/WPFqgu
Here is an excellent source for keeping track of the various organizations and their respective events:
http://bit.ly/UfkrWm
http://bit.ly/V1AICi
http://reut.rs/VVpECg
http://bit.ly/V1AICk
http://bit.ly/VXiNIA
http://bit.ly/VTspUn
There are quite a number of institutional reports on Africa's progress. Here are some examples:
http://stanford.io/Y3HBnu
http://www.nepad.org
http://bit.ly/Y3HBny
http://bit.ly/X5KHkK
http://bit.ly/Y3HEzH
http://bit.ly/XwGfO3
http://bit.ly/11twKUI
Business between Turkey and Africa is solidified by a series of conferences and country partnerships.
http://bit.ly/XwGfO7
http://bit.ly/11twIvQ
http://bit.ly/Y3KLre
http://bit.ly/11twIvS
http://bit.ly/UY8MeG
http://bit.ly/ZZWYO6
South Africa is the country with the most iron ore in Sub- Saharan Africa.
http://preview.tinyurl...
http://bit.ly/13AtF3B
http://bloom.bg/108713M
http://bit.ly/13AtDZq
http://bit.ly/108713N
http://bit.ly/Xc7GdP
http://bit.ly/VhHotl
http://preview.tinyurl...
http://bit.ly/Xc7GdR
Some progress on improving health is being made here and there but the news indicates any progress is not easy to come by.
http://preview.tinyurl...
http://bit.ly/10KR7xA
http://bit.ly/Vi9TG9
http://bit.ly/10KR9FB
http://bit.ly/13WxekR
http://bit.ly/TbogPB
http://bit.ly/10EN93U
http://bit.ly/YqIhU1
http://bit.ly/10EN9ka
http://bit.ly/YqIhU4
http://bit.ly/10EN9kd
http://bit.ly/W76Q60
This economic phenomenon is being looked at by the U.S. Congress, the Senate Subcommittee on African Affairs and the Congressional Black Caucus Foundation in particular.
http://1.usa.gov/14mGAq9
http://bit.ly/W76Ov9
http://bit.ly/10YPAD2
http://bit.ly/Y7J3S4
http://bit.ly/10YPAD6
http://bit.ly/Y7Jj3v
http://bit.ly/W8W0wh
http://bit.ly/Y9pCIG
http://bit.ly/W8W0wi
http://bit.ly/Y9pEju
http://1.usa.gov/Wq787A
http://1.usa.gov/XEAV8T
http://1.usa.gov/Wq787C
http://bit.ly/XEAV8V
http://bit.ly/Y9w8PC
http://bit.ly/110NALr
http://bit.ly/Y9w7Lp
http://bit.ly/110NCDh
http://bit.ly/Y9w7Lt
South Africa has tended to serve a hub for funneling outside investment to the rest of Sub- Saharan Africa for quite some time. But it now has plenty of competition from the rest of the world wanting to strengthen their own trade with Sub- Saharan Africa.
http://buswk.co/110NALx
http://bit.ly/Y9w8PF
http://bit.ly/N0e71a
http://bit.ly/WvjvfA
http://bit.ly/WvjxUI
http://www.saisi.co.za
http://www.sassda.co.za
http://nmdcnigeria.org
http://bit.ly/Yxv9fU
http://bit.ly/UY8MeG
http://bit.ly/Yxv7EV
http://bit.ly/XKnQeS
http://bit.ly/VqxxEq
http://bit.ly/XENn8G
http://bit.ly/VqxxEs
http://bit.ly/XENpgO
http://bit.ly/XENn8K
http://preview.tinyurl...
http://bbc.in/WGybJH
http://bit.ly/WGybJJ
http://bit.ly/XEVwtI
Believe this is an excellent book - if you search, I think 1/2 bloggers have commented on it/reviewed it.
Sure you can find it on Amazon (UK?) too.
http://preview.tinyurl...
http://bit.ly/XIXUj9
http://bit.ly/14tWi3O
http://preview.tinyurl...
http://bit.ly/XIXUjb
http://bit.ly/WVspnJ
http://bit.ly/Tho7sL
http://preview.tinyurl...
There are a number of energy industry conferences devoted to the topic of new renewable supplies, perhaps too many to mention because the renewable energy discussions are mixed in along with the carbon- based and electrical energy conferences. Here are a few examples:
http://bit.ly/WVspnM
http://bit.ly/Tho7Jb
http://bit.ly/WVspnV
http://bit.ly/YmbFXJ
http://bit.ly/WEgFoB
http://bit.ly/UHq4hB
http://bit.ly/WEgFoD
News about Sub- Saharan Africa's oil and gas sector is expanding at a rapid rate as the situation becomes better known. The news mentioned in this blog entry is only a small sampling of what is now available.
http://bit.ly/UHq4hD
http://bit.ly/WEgFoE
http://bit.ly/UHq6WK
http://bit.ly/WEn8zP
http://read.bi/116Jfp5
http://bit.ly/WEn6In
http://bit.ly/12dyL7Q
http://bit.ly/Vre55c
http://bit.ly/12dyL7S
http://bit.ly/Vre3Kr
http://bit.ly/12dyLoa
http://bit.ly/Vre5lq
http://bit.ly/U5fOBW
http://aatf-africa.org
http://preview.tinyurl...
http://preview.tinyurl...
http://bit.ly/Xbls06
http://www.icafrica.org
http://bit.ly/TiRuec
http://preview.tinyurl...
http://bit.ly/VyevZl
http://bit.ly/TiRsmH
http://bit.ly/Vyewwv
http://telecomafrica.org
http://bit.ly/WN02dy
http://bit.ly/VRygLI
http://bit.ly/WN03OO
http://bit.ly/WN02dz
http://bit.ly/YBnQQC
http://bit.ly/WNailY
http://bit.ly/YBnQQD
http://bit.ly/WNaim0
http://bit.ly/YBuVAE
http://bit.ly/VHljaw
http://bit.ly/YBuVAK
will hopefully produce lower debt burdens in the future.
http://bit.ly/12repYS
http://bit.ly/WuiCpx
http://afrodad.org
http://bit.ly/WumM0y
http://bit.ly/12rhfNx
http://bit.ly/WumJBZ
http://1.usa.gov/12rhdFj
http://bit.ly/VCuOCC
http://bit.ly/12rodC7
http://gaic.kcorp.net
http://preview.tinyurl...
http://bit.ly/14D76Mn
http://bit.ly/VHKXMs
The UK Trade and Investment agency mentions many conferences meant for stimulating British- African trade.
http://preview.tinyurl...
http://bit.ly/14D772B
http://bit.ly/VHKXMu
http://bit.ly/WPfPsv
http://bit.ly/14EvVY7
Canada is working on increasing its trade and assistance with Sub- Saharan African countries. Canada might be at its best with providing food and technical assistance while the Sub- Saharan African nations may prove to be a reliable market for Canadian manufactured products as they become more prosperous over time.
http://www.caipa.ca
http://bit.ly/WPfQN0
http://bit.ly/14EvVY9
http://ccafrica.ca
http://bit.ly/WPfPIN
http://bit.ly/WPkuun
As was mentioned before, China invests in Africa for its raw materials in particular. China is motivated to feed its millions of people and gain access to raw materials to support its manufacturing sector. China is therefore interested in Sub- Saharan arable land and productive mining districts. China is working on building infrastructure across Sub- Saharan Africa with emphasis given to building new railroads and rehabilitating the older ones. The railroads will provide access to the farms and mines from the port cities. Sub- Saharan Africa gains with the infrastructure building and having a demanding market for its exportable goods.
http://bit.ly/VEydAJ
http://www.sinogate.org
http://bit.ly/WPkuup
A glimpse at the rare metals:
http://bit.ly/tcxj2q
http://bit.ly/VJs77y
http://bit.ly/XWWv8O
http://bit.ly/VJs8sd
http://bit.ly/XWWv8S
A glimpse at the precious metals:
http://bit.ly/VJs8sg
http://bit.ly/XWWvp6
http://bit.ly/VJs77C
http://bit.ly/XWWvp8
http://bit.ly/VJs8sj
A glimpse at diamonds:
http://bit.ly/VJs77E
http://preview.tinyurl...
http://preview.tinyurl...
A glimpse at the gems:
http://on.doi.gov/XWWvFT
http://bit.ly/VJs77G
Trading these precious items are often fraught with danger and controversy.
http://bit.ly/XWWvFV
http://bit.ly/VJs8Ix
http://bit.ly/TA2SAx
http://bit.ly/YHEONl
http://bit.ly/12xbFch
http://bit.ly/YHEQF5
Investors can search for many leads on companies doing business in Africa by using the search name "Africa" in the search boxes for the stock exchanges located in the United States, Canada and Europe.
Investors can check with the chamber of commerce for African related business ideas.
http://bit.ly/YIwU6m
Investors can check with any of the stock exchanges located in Africa to get a good idea of business being done in the various countries.
http://bit.ly/TSfjtN
Investors might decide that is simply easier to do business with an African related exchange traded fund, a closed end fund, an index fund or a mutual fund found in the listings on the major financial news websites. Or perhaps a depositary receipt found in http://www.adr.com will fit an African related investment objective.
Perhaps it might be the oil and gas and mining sectors.
http://bit.ly/11tOksL
http://bit.ly/14GXGzj
Maybe it might be the logistics, shipping and rail sectors.
http://bit.ly/11tOlgy
http://bit.ly/14GXGzl
http://bit.ly/11tOlwM
Or maybe it will be the urban renewal, real estate, banking and finance, marketing and trading sectors.
http://bit.ly/14GXFLS
http://bit.ly/11tOlwN
http://bit.ly/14GXGzn
http://bit.ly/11tOlwP
It could be the education, health care and technology sectors.
http://bit.ly/14GXGzr
http://bit.ly/11tOksP
http://bit.ly/14GXGzt
Or it might be the agriculture, tourism and forestry sectors.
http://bit.ly/14GXFLU
http://bit.ly/11tOksR
http://bit.ly/14GXFLV
The phenomenon appears strong enough at this point in time to provide for a lively market of trading, investing, importing and exporting. If it continues to gain momentum, it will feel as natural in a few years to talk about Emerging Africa as it is now commonplace to talk about Emerging Asia or anyplace else.
It will need more strength and universality to fight the famous problems of disease, hunger, poverty and despair. Extraordinary efforts, both public and private, are being made to tackle those challenges. It is hoped that they turn out to be very successful.
http://bit.ly/TSz0l7
And thanks go to you for mentioning Ryan Hoover's helpful African investment resources article linked at the top of this blog. I'll re- link it here as a reminder for any reader making progress going through this rather extensive blog.
http://seekingalpha.co...
http://bit.ly/X18d6i
http://preview.tinyurl...
http://preview.tinyurl...
http://africacncl.org
http://bit.ly/11lsKX4
http://bit.ly/YZVX5Y
http://bit.ly/11lsN56
Africans give the view that their stock exchanges will grow smartly in the next several years as they gain financial savvy.
http://bit.ly/YZVX60
http://bit.ly/11lsN58
http://bit.ly/YZVX61
http://preview.tinyurl...
http://preview.tinyurl...
http://preview.tinyurl...
http://bit.ly/Ya9VoQ
Which coastal city and- or coastal strips have a good chance to act as Africa's trading window to the rest of the world given the circumstances? To put it another way, which coastal stretch has a good chance to be the next Cape Town?
Kenya, one of the many coastal nations, has ambitions to act as the economic hub for most of East Africa. It looks like they have a decent chance to fill that role according to some interesting research I've come across.
Suez Canal (before the revolution) is/was actually Egypt's biggest contributor to GDP
Mombassa in Kenya, Dar Es Salaam in Tanzania and Beira in Mozambique seem to be the contenders you're talking about.
Mombassa is medium: http://bit.ly/R24Lqm
Dar is large: http://bit.ly/VM145j
Beira is medium: http://bit.ly/R24JyZ
Seems like Dar Es Salaam is the leader in the club house... what do you know otherwise?
(By the way... Zanzibar off the coast of Dar makes for a nice few days of holiday...)
http://bit.ly/XBzIjr
Likewise for DP World with operations in Djibouti, Mozambique, Senegal, Algeria and South Africa.
http://bit.ly/T6uEUK
http://bit.ly/R4tCKc
Although it already has inland service operations in 12 countries from East Africa (including Kenya, Uganda and Tanzania, as well as parts of Congo and Zambia)
It eyes Mombassa for their expansion into East Africa, i.e. expansion in port terminals. Logistics Container Centre Mombasa (LCCM), part of APM Terminals Inland Services, already is in operation since 1997.
OR
Groupe Bolloré SA ( 94% shareholder of Bolloré Africa Logistics)
main listing at Euronext (Paris) , but also US-listed on the Pink Sheets (BOIVF.PK).
50 years of experience in Africa and plans for African logistics to expand to Ethiopia.
Barron's on Bolloré SA:
"An investment in Bolloré is a bet on France's Warren Buffett....[..] The 60-year old CEO generates most of the headlines for agitating for change at staid companies, but Bolloré is a well-run business whose activities span transport and logistics, fuel distribution, technology, and media. [..].
Its profitable transport and logistics operations, which account for more than 50% of revenue, are concentrated in Africa and encompass everything from ports to railways and trucking. That makes Bolloré a play on Africa's enormous growth potential."
http://bit.ly/UL7bH8
(Full text without subscription: http://bit.ly/12oK1N6 )
Operations of Bollore Africa Logistics.
http://bit.ly/UL7bHf
What seekingalpha writes on Bollore.
http://bit.ly/VPfilM
Bollore Africa Logistics stock info:
http://bloom.bg/UL7bHl
http://bit.ly/12oK3od
Financial Times'article
http://on.ft.com/ULaiig
Uncle Scrooge has now been added to the Frontier Markets Authors page: http://bit.ly/ULc4jC
I am reading everything you guys are putting here.
For those who are familiar with Uganda. It recently acquired SDV Transami. In addition, Bolloré Africa is going to support the oil companies with real estate solutions . http://bit.ly/T6HPos
http://bit.ly/T7jgJs
http://bit.ly/TyfnMe
=> Operations in Kenya, Uganda, Tanzania, Rwanda, Rwanda, Burundi and Sudan.
Customers include well-known MNC's: http://bit.ly/TyeHXh
Off record, some other trucks which I found often along the road in Uganda (building a tarmac road to Rwanda): SBI International Holdings AG, i.e. a Swiss listed construction company:
http://bit.ly/TyhkrZ
http://www.sbi-ag.ch
http://seekingalpha.co...
While Kenya is not right on the beaten path of trans- global shipping, it is not too far way from it. It's developing its ports to tap into that traffic. Kenya also has a huge resource rich hinterland of neighboring landlocked countries with potential items for trade going through Kenyan ports to the outside world. Kenya's geographic position must be one of the investment criteria taken into account by the business community.
http://bit.ly/ZQiEMd
http://1.usa.gov/12AJlmV
http://bit.ly/V8A8f1
Could be a niece way to play Mozambique (and Angola).
Operations mainly ride the commodity wave, i.e. the firm's most considerable investments are in Congo, Zimbabwe, Equatorial Guinea, Angola and Mozambique.
Includes majority ownership in FastJet, a low cost airline backed by EasyJet's Stelios: http://bit.ly/YmxeKR
http://bit.ly/U0KFMr
http://bit.ly/Y7g2TX
http://preview.tinyurl...
First, at this point there is NO PURE PLAY on Africa listed in the group. It' scattered all over the place between ODET-BOL-PTER-CBDG-ART... (all listed in Paris).
The Socfinal part (Fabri) is mostly related to SE Asia.
FORE, while one of the tiniest is one the purest play.
Bolloré-Rivaud is BY FEW MILES the ultimate example of cross-holding, result of the combination of Bolloré + group Rivaud, both extremely complex examples of cross-holdings, French style.
Vincent Bolloré has been grabbing bits and pieces of the float on all those firms with tiny float (some as low as 2 or 3%)...but holders are hard core FANS who knows he is very good at making money, so unlikely to sell. "Sorry Monsieur Bolloré, respect you too much to sell my shares in all the above".
The good news for you is that last year a bunch of small things happened and over the last few months something, on the surface minor, but of CRITICAL important happened, so we could expect SERIOUS CHANGES in the structure of the group this year....which means that at some point, African-trading activities could listed in a new company within 2-3 years.
For now, in my opinion, you best hope to gain exposure to Bolloré's African business (big picture) is Bolloré, or cheaper smarter but less liquid, Odet!.
Disclaimer:
I hold shares in: PTER, CBDG, ARTO, MONC, FORE, MLTRA, MLCVG.
Can you elaborate somewhat more on [the] "last few months something, on the surface minor, but of CRITICAL important happened, so we could expect SERIOUS CHANGES in the structure of the group this year....which means that at some point, African-trading activities could listed in a new company within 2-3 years." ?
Perhaps a few links ?
Do you expect that " Bollore Africa Logistics" which already has it's own listing in West-Africa, will undergo an IPO overseas ?
Interesting stocks you are mentioning. I thought there was also a separate (Luxembourg) listing of the African business by Socfin: Socfinaf ?
That Bollore (=comprised of many holdings in small companies) does not have any business which is a 100% exposure to Africa ?
Hope to see you more often at SA.
http://bit.ly/131cQCn
Have a look at the list of listed entities and their shareholders and you will the problem.
What happened in june 2012, nov 2012 and feb 2013 are technical points that could help to merge ODET and BOL without Vincent Bolloré going below 50% of the merged entity, ignoring cross-holding.
I don't think there is a more complex cross-holding structure in the world so decoding the move on this chess board for years has turned into an art :)
So time may move faster.
Will see once the 2012 financials are announced (next week ) what happens!
Under the same entities, you find ANYTHING, Africa-trading as well as HAVAS, VIVENDI, ITALIANS BANKS, LI BATTERIES AND BLUE CAR....plus all the small stuff left of over from Rivaud ...and I forget many.
Even FORE that controls Sitarail I think owns a critical piece of one of the key holding, making the valuation a headache.
Socfinal-Socfinasia-So... controlled by H Fabri which is a partner of VB but VB is only a minority shareholder there.
Socfinaf is about Kenya if I remember, marginal in comparing to the trading business of VB in Africa.
Socfin was listed in Belgium and Luxembourg and has been delisted (split between VB and HF).
ANYWAY, I think the activity on many of those VB entities are for those (maniacs or fans) following VB for 20-30 years a hard evidence something is changing, with his sons getting more in charge, simplification of the structures per type of business in order to raise equity thanks to high valuations of "pure plays".
If I am not mistaken, within 9m-12m, it should be clearer.
My cup of coffee is Mongolia (my exposure to the local market is at par with my exposure to the VB companies), not Africa which I think is a 50 years shooting range while Mongolia should deliver much more within 10.
East Africa has the advantage of being that side of the continent facing the richer, resource hungry countries of Turkey, the Gulf States, India, China, Japan, Taiwan and Korea. Australia invests a lot in East Africa, too.
East Africa is an interesting investment destination.
http://bit.ly/Z2Acma
http://comesaria.org
http://bit.ly/11nMWaY
http://bit.ly/12kl4Cq
Kenya is now working on developing a new corridor connecting neighboring countries with Lamu, another Kenyan port. The corridor will consist of a highway, oil pipeline, railroad and a deepened water port. The corridor will enable the development of the dry northern half of Kenya and neighboring portions of South Sudan and Ethiopia. South Sudan is noted for its oil wealth; Ethiopia has some mineral wealth; both are concerned about their landlocked status. It is hoped that Lamu can keep its appeal to tourists with the development, however.
http://bit.ly/XzICy3
http://bit.ly/12kl4Cv
http://bit.ly/11Xzytp
http://bit.ly/XBLSYL
http://bit.ly/XG19IJ
http://bit.ly/UqXv7V
http://www.kura.go.ke
http://bit.ly/XG1aMN
http://bit.ly/14eI4Ui
http://bit.ly/V5J48p
http://bit.ly/14eI4Um
http://bit.ly/V5J4Ft
http://www.energy.go.ke
http://bit.ly/Vbd7M9
http://bit.ly/10ZomML
http://bit.ly/Vbd7Mb
http://read.bi/VLQDym
http://seekingalpha.co...
http://bit.ly/RA11On
http://oilgas-africa.com
http://bit.ly/1370uGb
http://bit.ly/WgHCNQ
http://bit.ly/1370whe
http://bit.ly/VrOutf
http://bit.ly/XwAFyZ
http://bit.ly/VrOuth
http://bit.ly/W2RVZX
http://bit.ly/10huO1c
http://bit.ly/SFW7zR
Some organizations offer advice on investing in Kenya-
http://bit.ly/UDLVmw
http://bit.ly/SFW7Qd
http://bit.ly/UDLTeF
including the Nairobi Securities Exchange.
http://www.nse.co.ke
Our State Department also issues advisories and other news.
http://1.usa.gov/SFW6fg
http://bit.ly/12kCu1L
http://1.usa.gov/10WTXj7
http://1.usa.gov/VcuQ3Z
http://bit.ly/V5iZ9t
http://bit.ly/11XqaG5
http://www.ktio.org
http://bit.ly/V5j0Kx
http://bit.ly/11Xr6KL
http://bit.ly/V5lgSi
http://bit.ly/11Xr6KM
http://bit.ly/UqNOX7
http://www.kari.org
http://bit.ly/V5mWez
http://bit.ly/UqNR5k
http://bit.ly/14jdGaq
http://on.doi.gov/11XsME7
http://bit.ly/14jdGau
http://bit.ly/RA11On
http://bit.ly/14jiAEA
http://bit.ly/11Xvzgn
http://bit.ly/14jiAEC
http://bit.ly/10X21QI
http://bit.ly/WZfFe6#
http://bit.ly/10X21QO
http://bit.ly/101s5Zt
Tanzania has historically been famous for its tourism.
http://bit.ly/Tejey4
http://on.ft.com/Vc73nq
http://on.ft.com/VY4oKM
http://on.ft.com/UQiq1G
Tanzanians like taxes:
http://on.ft.com/VY4oKQ
http://bit.ly/Uy5puU
http://bit.ly/XxtXIV
http://bit.ly/Uy5nDh
http://bit.ly/XxtXIZ
Details about the new rail lines are found with downloadable pdfs at this link.
http://bit.ly/Uy5puV
http://bit.ly/XxxbMs
Zambia is geologically wealthy and is probably most famous for its copper mines.
http://bit.ly/Uy8ye3
http://bit.ly/XxxdUO
http://bit.ly/Uy8ACR
http://bit.ly/XpReWX
http://bit.ly/UasmFP
http://bit.ly/XpReWZ
http://bit.ly/YsGca5
http://bit.ly/XFrc2R
http://bit.ly/YsGaPN
http://bit.ly/XFreYg
http://bit.ly/YsGca7
http://bit.ly/15aV9P8
The EAC is making diplomatic arrangements with other countries besides the United States in hopes of attracting additional foreign investment.
http://preview.tinyurl...
http://preview.tinyurl...
http://preview.tinyurl...
http://preview.tinyurl...
http://preview.tinyurl...
http://bit.ly/Zxnps9
http://bit.ly/10QAaz9
This new project comes at a time when the other ports and infrastructure are being upgraded.
http://bit.ly/Zxnpsb
http://bit.ly/10QA9uY
http://on.ft.com/UQioqI
http://bit.ly/YxknFL
http://bit.ly/UQioGY
http://bit.ly/YxkpgT
http://on.ft.com/UQiq1G
http://reut.rs/YxknFT
http://bit.ly/UQiq1K
http://on.wsj.com/YxkpgZ
http://reut.rs/UQiq1L
http://bit.ly/Yxkph1
http://bit.ly/UQiq1M
http://bit.ly/Yxkph9
http://bloom.bg/UQioHe
Ophir Energy:
http://bit.ly/YxknFY
http://on.ft.com/UQioHh
http://on.ft.com/Yxkpxy
(i.e. reports on Ghana, Nigeria, Tanzania, Rwanda, Angola, Botswana, South Africa, Cameroon). They are quite recent, i.e. Ghana report is from August 23, 2012
Just filter "Country Reports", then "Africa".
http://bit.ly/UYQ58N
By the way, there are also country reports on Mongolia (Sept 2012) and Sri Lanka (two versions: Sept 2012 and Jan 2010), Bangladesh and the Maghreb region (Algeria, Marocco).
The BBC World Newsalso seems to do a god job with their country profiles. They are all updated quite regularly:
http://bbc.in/UYRDQ7
http://bit.ly/ThKAn9
Though some "predictions" made in 2010 have already proven to be obsolete.
These are the Sub- Saharan countries that are actually facing the busy trans- global maritime route. Their littoral is on the strategic Gulf of Aden between the Red Sea and the Arabian Sea. The maritime route has connections northward to the Suez Canal, recently deepened to accommodate some cape- size vessels. The maritime route connects traffic eastward to the Malabar Coast of India, Sri Lanka and Singapore, with a side detour to the oil rich Gulf States.
Djibouti has ambitions to become an important stopover on the maritime route. Dubai World has a port there. The United States military is stationed there. And Djibouti is the main port servicing Ethiopia, which makes up the country's hinterland.
http://bit.ly/VkdY9Z
http://bit.ly/RbiLyf
Somaliland is a region needing to be explored for valuable minerals. Its main commercial asset must is the deep water port at Berbera.
http://bit.ly/VkdYqh
Puntland is known for its fisheries and oil deposits. Its port at Bosaso is becoming more important for Arabs and Indians doing business in nearest Africa.
http://bit.ly/RbiNWS
The three countries are considered to be underdeveloped; investors will probably need to take a very long range view of their situations. A reduction in maritime piracy should go a long way to facilitating their development and awakening foreign investment.
http://bit.ly/VkdWyD
http://bit.ly/WxNJjc
This is becoming an impressive blog thanks to Schumpeter and you. Quite another treasure trove there.
And, me, I finally figured out Puntland is a declared autonomous region in Somalia http://bit.ly/RbiNWS
Their neighbors in Ethiopia's Ogaden region are ethnic Somalis, too. The politics of that situation helps to make investing efforts in the Horn of Africa problematical.
http://bit.ly/VX2Pwk
http://bit.ly/12HPWMy
http://bit.ly/TeCSeK
The country is known to have some mineral wealth such as coal, base metals, gemstones and rare earths. Interested parties are just beginning to scratch the surface about these.
http://bit.ly/12HPWMA
I think you are really making some excellent points here. Both on Ethiopia and on Somaliland. It has occurred to me that many, many non-resource companies are moving toward Ethiopia (e.g. Diageo, Visa, Bollore). Economic activity is rapidly increasing. This has much to do with a very large Ethiopian diaspora. Mostly because home remittances. And let us not forget, the country's booming potash industry e.g. Allana Potash (ALLRF.PK).
Djibouti, a stable country, might be the perfect way to play Ethiopia.
And Somaliland might be an excellent way to play Somalia. It is absolutely non-comparable to Somalia itself: http://bit.ly/ThIlA1
I would strongly recommend checking the related BBC TV-series "Indian Ocean with Simon Reeve" in which he travels from Somalia to Somaliland (series also include Sri Lanka and Bangladesh in a different episode)... If not alone, for the wheelbarrow full of dough.
Ethiopian diaspora and business:
http://on.ft.com/Tfa3yJ
http://bit.ly/ThImnR
http://bit.ly/Tfa3yL
http://bit.ly/ThImE7
http://bit.ly/Tfa3yN
http://bit.ly/ThImEd
http://bit.ly/ThImEe
http://bit.ly/Tfa3yP
http://bit.ly/ThIlA2
http://bit.ly/Tfa3yT
http://bit.ly/ThIlA3
http://on.ft.com/Tfa3P6
Always learning..
http://bit.ly/UmM9lI
BTW,regarding Holland Car(a link above mentioned) ,it already went bust (just a month ago): http://bit.ly/U50ZtD
http://bit.ly/TO6QVv
http://bit.ly/YBGHOy
http://bit.ly/TO6QVx
The Djibouti-Ethiopia-South Sudan Transport Corridor:
http://bbc.in/YBGHOF
http://buswk.co/TO6QVC
http://bbc.in/YBGHOO
http://bit.ly/TO6QVJ
http://on.wsj.com/YBGI56
(MTN Group is already present in South Sudan. Next's mobile money frontier http://bit.ly/TO6RbZ)
http://bit.ly/YBMAeI
It will be worthwhile to see if the three regions trade more closely with each other in the future.
A couple of examples:
The Bridge of the Horns might be built with Arabian oil money.
http://bit.ly/Ti53Z3
Ethiopia is trading more out of Somaliland's Port of Berbera.
http://bit.ly/TgRJaD
http://bit.ly/Ti527a
http://bit.ly/TgRJaG
China, America, Europe, Arabia and India are taking an active interest in the Land of Punt. There has to be good reasons why.....
http://bit.ly/VXUkB6
http://djiboutifz.com
http://bit.ly/WI7PLx
Marketwire - Dec. 18, 2012 - Allana Potash Corp. (ALLRF.PK) wishes to express its congratulations to the Djibouti Ports and Free Zones Authority (DPFZA), the Governments of Djibouti and Ethiopia, and the people of Tadjourah Region in Djibouti, on the official completion of financing and start of construction of the new bulk port at Tadjourah, Djibouti.
http://mwne.ws/TYVqyc
http://bit.ly/YgU421
http://bit.ly/10jOAsH
Boy, did that stock costed me money.
http://bit.ly/UmvPxS
http://bit.ly/Tz0MSp
http://bit.ly/VeSFLw
Otherwise it looks like the continental business news will have to suffice. Here are a few examples out of many:
http://bit.ly/XzpyiK
http://afrobiznews.com
http://bit.ly/VeSDDp
http://bit.ly/XzpzmR
http://on.ft.com/16dhAUq
" Ethiopia is Africa’s second most populated country with approximately 85m people and population growth of 2.5 per cent per annum. It is also one of the fastest growing non-oil economies in Africa with a stable political environment and growing personal incomes. "
" The UK’s Diageo last year snapped up Meta Abo Brewery, maker of the country’s number two beer brand Meta, in a $225m all cash deal."
http://www.hananews.org
http://bit.ly/WHLeiI
Berbera re-visited ?
http://bit.ly/WnzPlZ
http://on.ft.com/112XPP5
http://bit.ly/10jQDNc
http://bit.ly/YgWeyt
http://bit.ly/10jQBoA
http://bit.ly/10jUObQ
http://bit.ly/Yh0D4t
http://bit.ly/XoOxFF
http://bit.ly/SkS7mY
http://bit.ly/XoOxFJ
http://bit.ly/YsASna
http://bit.ly/Y3Y33j
http://preview.tinyurl...
http://preview.tinyurl...
http://preview.tinyurl...
http://addisbuild.com
The Chamber of Commerce takes a particular interest in trade, agriculture and tourism.
http://bit.ly/YsAQMb
http://bit.ly/14CRBCf
http://bit.ly/ZmLjHo
http://bit.ly/14CRBSt
http://bit.ly/ZmLjXG%20|%20Economy
Profile: http://yhoo.it/12T369s
Home page: http://www.feronia.com
Had to go to Bloomberg for good chart: http://bloom.bg/Rla5p0
Quite important to know is that Feronia Uganda Limited is not associated with them (as I always mistakingly thought).
I believed that SA author John Polomny was also watching this stock ("As far as other countries in Africa I like Banro (BAA) in the DRC. I also am looking at a small compnay that is rehabilitiating a palm oil plantation that used to belong to Unilever.")
- being in africa, they are perfectly located to feed africa, and they are positioning themselves to do such.
http://bit.ly/YoRrLm
http://yhoo.it/WYOCFF
- Phatisa (http://phatisa.com) recently invested at 12c.
http://yhoo.it/YoRrLq
- numbers wise, it is understandable still to make a profit, and a bit illiquid, however it also has a low debt/equity ratio (which i am heavily bias towards). most importantly, at around 10c, it is much easier to double to 20c, than say bunge to move from $72 to $144. major risk here is further share dilution may happen.
- seem immune to the political issues in congo. also appears to be looking after the environment and people - very important to me.
http://bit.ly/WYOFB9
I am big fan of investing in agricultural lands and even more keen on frontier markets, but it seems to be a re-occurring worry to me with those plantation companies.
Moreover there is a word of precaution. Each time Congo troubles start, they start locally in the eastern part, i.e. the rise & march of a new rebel group. Recently rebel group M23 conquered Goma, while the UN wasn't prepared to do anything. Not even defending local civilians. M23 said it wanted to march to Kinshasa (DRC's capital), i.e.. the west. It was only after international pressure on Rwanda and Uganda(!) that M23 didn't do it and even left Goma.
http://bit.ly/VfdcOq
http://bit.ly/10IwXnD
http://preview.tinyurl...
Funny what we'll do for a picture on a safari.
One of my most favorite parts of my 5 week trip from South Africa to Egypt in 1995 was time in Zanzibar, Mitu's spice tour, the food market with kebabs and sugar cane juice, Sambusa's Two Tables restaurant (literally a restaurant of two tables on his home's patio), the old city. Really nice place. Feels like the author hasn't been there. Couldn't write the way he did if he had. Yet, its the FT and it will get international attention.
http://bit.ly/Vm5INo
http://bit.ly/10ESlEX
http://bit.ly/Vm5Lce
The Omani role in Zanzibar happened many years prior to Zanzibar's union with Tanganyika in 1964, forming Tanzania.
http://www.zanzibar.net
http://bit.ly/Wj5416
http://bit.ly/V0YJWB
http://bit.ly/Uov6iM
http://bit.ly/WxPbSC
http://bit.ly/Uowj9U
http://seekingalpha.co...
Sounds like a flourishing frontier market. Looking forward to more writing and comments from you.
My personal travels are unfortunately booked up through August... but after that I'm open to suggestions as things develop... and depending on employment status, I may be a bit more beholden to travel more to Asia for the time being.
That said, I would also like to hear more about stories such as the woman who started a chewing gum factory and now dominates the market. I go to conferences from time to time where there are people interested in these types of stories and investing in people with this kind of success.
One issue I've heard is a challenge for Ethiopia's development is that it is landlocked and must go through either Somalia, Djibouti, Eritrea, or Kenya to get port access. Is this issue overblown? How is infrastructure development? (roads, rails)
http://bit.ly/VpI9Ob
You just cannot participate here by sitting in a New York office and pushing buttons on a computer. There are very few publicly listed companies in most of Africa actually especially as compared to the developed world. No easy means are available to add to a pension plan or investment portfolio so almost everyone is going to miss out on the growth story.
This is a place where much of what is happening is in the incubation stages and so the real action is much more personal and in your face. It is a market for younger people with their own capital, a little ambition (and lots of patience).
I hear stories almost daily from others about what they are doing and am usually amazed at how well it has worked out. Even guys who are complete screw ups elsewhere are turning a buck. It is because land, labour and power costs are just so low here that there is a lot of forgiveness for those making mistakes and they survive to see another day.
One of the biggest areas of opportunity here and in much of the rest of Africa is "processed foods". Try buying a bag of potato chips in Addis Ababa for example and you will see what I mean. There are no MacDonalds either and precious few chain stores. Everything is Mom and Pop.
Pizza and burgers have just arrived here in the last few years and overnight became some of the most popular dine-out foods. Fast food is still virtually unknown and yet the term "take-away" has still managed to creep into the local language and the idea has taken hold. Fried chicken outlets have yet to make an entrance. I have only seen one so far but I am confident they will grow explosively once someone starts building them.
I just saw the first real car wash the other day. It was full. Laundries and dry cleaners are still in their infancy yet are so popular and in demand that you wait in excess of a week to get your clothes back. One of the biggest areas of opportunity is in entertainment. This is a nation of youth where the median age is 14 years. Games, pool halls, arcades, toys and cosmetics for young women are huge growth areas. Just by paying simple attention to the demographics one could make his fortune.
There is a fast developing middle class here and a huge Diaspora with strong connections to the West that live here. Consumption is rising dramatically. Shops and cafes are often filled to the last chair with the most successful being those that have emulated Western marketing models.
But you can't make money on it unless you do a little serious research and just get on a damn flight and come here. Ethiopian Airways offers direct non-stop flights daily from both Toronto and Washington DC and will soon have a fleet of ten 787 Dreamliners on offer.
They are the only airline in Africa with direct links to North America incidentally and that in itself should indicate to everyone the growing importance of this region.
Without giving it too much thought I can say without reservation that Ethiopia is now amongst the most strategically important nations to US interests in Africa and the relationship is growing stronger all the time. This country is a lion in the region and a good friend to the West.
http://bit.ly/Vj0cGq
A happy, healthy and meaningful 2013 to everyone in this chat room, and your families, (and even to the people not in this chat room who just don't know how good it is ;-)
Jon
There are crazy things about this place that drive some people nuts. We don't have phone books for example and there is no yellow pages online or in print.
There is also no mail delivery and only wealthy people have box addresses. Streets do have names but nobody uses them so locating people and places is hit and miss but a good driver can usually get you near if they have a landmark.
Business's and homes also do not have numbers posted on their door as is common in the US. Nor are there many traffic signals, crosswalks, sidewalks or public benches to sit and rest. It is a lot to adjust too.
Traffic especially is interesting as pedestrians do not have the right of way. So those are just a few extra thoughts to help you understand why the cost of doing business for those who engage is so low but also why it can be maddeningly slow.
Happy New Year to you and yours and all the bloggers here. Thanks also for all the info and time spent updating and keeping us informed. To all the bloggers, thanks for the great comments and for furthering my growth of knowledge.
Yes Happy New Year to each one of you and all the followers.
For those of you who are smokers and also enjoy a drink (and might be coming over for a visit) I have terrific news. Beer is 60 cents a bottle in restaurants and a pack of filter smokes goes for 50 cents. Very good hotel rooms begin a 65 dollars per night.
Housing is shockingly inexpensive compared to home. Foreigners can get very decent digs beginning at around 150 dollars per month. I have a four bedroom place, two kitchens, two baths with white marble floors throughout plus servant quarters included for that price, just to give you an idea.
Fresh fruit and veggies are available year round for mere pennies. The services of a porter to carry groceries, luggage, building supplies or whatever starts at 15 cents per load if it is near home. Average daily wages run about 1.25 for low skilled folk but even a fully qualified engineer costs just 350 dollars per month if you have the need for one.
One of the fascinating aspects of this country is that it is Orthodox Christian for the most part. There are churches absolutely everywhere you go and the people are quite devout compared to home. This is also a gun-free peaceful culture and violence is quite rare.
Despite the limitations around mail services and street address's the country is well connected. Virtually everyone has a cell phone and internet is usually available in even the smallest of villages. The new Commodity Exchange handles four products at the moment but is focussed on coffee.
Banking services are currently limited compared to the West which is problematic at times. There is no Debit system nor do shops accept Visa and Mastercard with the exception of some tour operators and the biggest hotels. ATM's meanwhile are still sparsly distributed around the country but that is changing fast. These can be used to dispense funds off most networks that accept Visa or Masercard or the new Debit-Visa cards.
Happy travels to anyone thinking of coming over for a look!
Mauritius is a country known for its economic freedom. It is often portrayed as an economic example for the struggling African countries to emulate. The country's economic expertise has recently been tapped for use as a conduit for Asian, European and American countries to indirectly invest in the Sub- Saharan region.
http://bit.ly/WmEmkd
http://bit.ly/WmEjoE
http://bit.ly/11651ZP
http://bit.ly/W7X5nI
http://bit.ly/WP8jd4
http://bit.ly/W7X3fo
http://bit.ly/VSbBQO
It takes a particular interest in what resources the surrounding Indian Ocean has to offer with its dependent island territories. The country has kept its claim to the Chagos Archipelago located north of Mauritius toward India. The archipelago, due to its mid- ocean position, is home to an important American military base on the island of Diego Garcia.
http://bit.ly/13SLNpy
http://bit.ly/VSbBQR
http://reut.rs/RACoQx
http://bit.ly/VvfVTa
http://bit.ly/XAYaXB
http://bit.ly/WloIVX
http://bit.ly/XAYcP8
http://bit.ly/WloIVZ
http://bbc.in/XcL3ba
http://bit.ly/ZuvdNr
http://bit.ly/XcL3bd
A slide show with page navigation arrows showing a project map is viewed at this link.
http://slidesha.re/XcQmYb
The rail line between the port city of Beira to the inland town of Sena and then beyond to Moatize has been rebuilt. It is important for the coal transport coming down from the Moatize area for export. Work is being done to connect Moatize northeastward into Malawi with a new railroad. An existing railroad from the town of Sena northward into Malawi is being rehabilitated. Malawi will have a couple of more connections to the ocean going through Mozambique.
http://bit.ly/106ZfrR
http://bit.ly/XcQkQ1
http://bit.ly/106ZfrT
http://bit.ly/UB7eqY
http://bit.ly/UB9gXV
http://bit.ly/VEyfLK
http://bit.ly/UB9hex
http://bit.ly/TFuPI7
http://bit.ly/VvxMt2
http://bit.ly/UQbB2s
http://seekingalpha.co...
http://seekingalpha.co...
http://bit.ly/VGinrY
http://bit.ly/Syhhfu
http://seekingalpha.co...
http://bit.ly/UCzbCx
http://bit.ly/WpV81z
http://bit.ly/UCze18
http://bit.ly/UCzZHk
http://bit.ly/WpVKo2
http://bit.ly/VLaWO5
John Polomny writes frequently about the company still.
http://bit.ly/S9Xjr1
http://bit.ly/UwCLsz
http://bit.ly/UCG1rw
http://bit.ly/13f0nas
http://bit.ly/13cSd3w
http://bit.ly/USWaq3
One thing I will say is that travelling here is not nearly as difficult as some portray it to be. It is nowhere near as dangerous as others suggest either. There are so many misconceptions it is aggravating to those who actually live here. It is meanwhile also an incredibly low cost place to visit (especially if you stay away from the big tourist attractions).
I recommend Thorntree travel forum as a site you will want to visit for current up to the minute information on all aspects of travel there. The site is temporarily down but should be back in a months time.
There is so much fresh news on the African Renaissance: more international trading with Africa, new railroad connections, new port expansions, new mining efforts, more wealth spreading amongst the populace, more avenues of communication, more opportunities to tackle the long term problems. Maybe more interest in Africa from American investors?
Cover Mongolia on Facebook: http://on.fb.me/SyFsKt
Cover Mongolia on Twitter: http://bit.ly/1198PYS
And you can also get Cover Mongolia in your e-mail.
To help answer that question, here are some samples from another commentator on Seeking Alpha about some Sub- Saharan African countries.
http://seekingalpha.co...
http://seekingalpha.co...
http://seekingalpha.co...
http://seekingalpha.co...
There is actually a great deal of information regarding Ethiopia written in Seeking Alpha by now.
http://bit.ly/VJ3y8f;goto_search_tab=
http://preview.tinyurl...
Hundreds of thousands of hectares of good quality Ag lands have already been let to some of the biggest agribusinesses around. Little guys are welcome too though if they have a minimum of 60,000 dollars in capital on hand. The whole continent is in the midst of the biggest land rush since the British (via the Hudsons Bay co.) parceled out Canada in the 1800's.
I mean it is simply UNBELIEVABLE what is happening in Africa now that has hardly even registered in the North American media. Millionaires are being minted here on land that is as close to free as you can imagine and with the lowest labour rates on the planet.
Only a fool could not make his fortune here if he tried.
I know of multiple people planting everything from cotton to apple orchards to Mango, banana and sugar that are already enjoying the fruits of their success. The demand from most of the governments is that the products be destined for export. All of these African nations are working hard to bring in foreign reserves as fast as they can.
Feeding the world is the key. They are simply building on their existing strengths as agricultural nations. A friend of mine from Italy has taken a 500 hectare plot for vegetables and peas. It is South of the capital in a prime growing region that gets more than 1000 milliliters of rain per year.
Just try to imagine for a second seeing that much land devoted to carrots, tomatoes, garlic and pulses. It is pretty much mind blowing. He is making a fortune. Labour rates on the farm are costing him 2 bucks per day but he sells into markets that are competing at 5 to 7 dollars per hour.
It is a no-brainer to come here for opportunity.
http://bit.ly/13iRddh
http://bit.ly/VTspUn
African real estate:
http://bit.ly/VriZCy
http://bit.ly/VTspUo
More on Rwanda:
http://bit.ly/VriZCz
http://bit.ly/VTspUq
http://bit.ly/TPKHYB
http://bit.ly/VRg6Za
http://bit.ly/VRgGWF
http://bit.ly/VRiiQi
http://bit.ly/UccsJC
http://bit.ly/TPPKIz
http://bit.ly/UcctNG
http://bit.ly/VdRVs5
http://techrwanda.com
http://bit.ly/13oBTwJ
Africa 34.6%
Botswana 0.8%
Dem. Rep. of Congo 0.9%
Egypt 1.8%
Ghana 1.3%
Ivory Coast 0.9%
Kenya 1.6%
Mauritius 1.5%
Morocco 0.2%
Namibia 0.5%
Nigeria 9.9%
Senegal 1.5%
South Africa 2.1%
Tanzania 0.3%
Tunisia 1.7%
Zambia 4.3%
Zimbabwe 2.4%
Other Africa 2.9%
Update November:
http://bit.ly/13oCDli
AFMF:LN
http://bloom.bg/ZPzE0C
http://reut.rs/TVvZiH
http://bit.ly/TS5udU
http://bit.ly/Xu2Bjd
http://bit.ly/Uy5puU
http://bit.ly/Xu2CDH
http://bit.ly/Sw8EWI
http://bit.ly/UK3wd8
http://preview.tinyurl...
There are a number of trade shows emphasizing the region's potential. Some business blogs examine the details.
http://expogr.com
http://bit.ly/Sw8E9c
Business must be good enough for the region to be considered for a spaceport.
http://bit.ly/UK3yl6
But have the steps taken against corruption there been effective?
http://bit.ly/Sw8H4E
http://bit.ly/UlRhoD
http://iorarc.org
There have been many discussions about the geo- strategic importance of the Indian Ocean.
http://bit.ly/W66kVh
They vary in their opinions according to who is viewing the ocean from what national standpoint about their commercial supply chains. Many articles can be found using the search terms:
Indian Ocean rivalry
India in the Indian Ocean
China in the Indian Ocean
http://bit.ly/VRMNs9
http://bit.ly/Xt15vh
http://preview.tinyurl...
http://bit.ly/WnDq0K
One business that does well in regions of little rain is the jojoba business.
http://preview.tinyurl...
http://bit.ly/XJlYo7
http://bit.ly/VeXzZ0
http://www.eac.int
http://www.comesa.int
http://www.sadc.int
http://bit.ly/133eZfI
Yes, I can personally recommend Advance Frontier Markets Fund (AFMF:LN). ;-)
It's probably the cheapest frontier markets fund out there - it's on a 9.5% discount to NAV (rallied sharply YTD - but I haven't seen anything more than a 15% discount in the past yr or two), and many of its underlying fund investments trade on significant discounts also. Not to forget frontier market valuations are also pretty cheap in relation to developed markets & to their estimated growth potential. AFMF is also the most diversified fund you can buy, both in terms of its own country allocations, and of the underlying fund allocations.
It's on my list of possible write-up stocks. It actually has a (dormant?) US ticker, but right now I just don't feel up to the aggravation of submitting a foreign stock article to SA editors... Sign up for email alerts at http://bit.ly/MVFfyk and you might see more abt AFMF & other similar opps. in due course.
Blackrock Frontiers IT (BRFI:LN) is the obvious competitor. It's not as cheap (5.8% discount, in line with its recent history) & somewhat less diversified (invests in stocks, not funds), but you get an active stock-picking approach & Blackrock's muscle behind it, so it's pretty attractive also.
Africa Opportunity Fund (AOF:LN) well worth a look also, on a 20.1% discount & looking set to rally for the new year. Which reminds me, the only US frontier markets fund that's impressed me is Market Vectors Africa ETF (AFK:US). The rest are pretty much rubbish - look at their portfolio allocations - not so diversified at best, downright misleading at worst!
There's one other v promising frontier markets fund I'm keeping an eye on - but it's a bit of unusual story, and clearly flying under the radar at the moment. I'll save it for a closer look first, and then possibly an interesting write-up.
Cheers,
Wexboy
Wexboy's post was in response to Schumpeter_1's query a few threads above here http://bit.ly/13w5TXj
Comoros is one of the most undeveloped countries in Africa. It has recently begun to work on a possible economic expansion with its potential for oil drilling and tourism. Perhaps its relationship with the other countries facing the Indian Ocean will improve its spice marketing and increase its shipping volumes.
http://bit.ly/VXkfNf
http://bit.ly/Umms38
http://reut.rs/VXkhF7
http://bit.ly/Ummqbt
http://bit.ly/VXkfNh
Mayotte is a department of France and therefore its currency is the euro. It might be an interesting speculation that this circumstance will enable it to become wealthier. But in the present time, a refugee situation is clouding the economic picture for these islands.
http://bit.ly/Umms3c
http://preview.tinyurl...
http://bit.ly/WZEmqs
http://bit.ly/SBFXYs
http://bit.ly/SBIJNk
http://bit.ly/WZH1Ak
http://nfa.org.ug
http://bit.ly/SBIJNq
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http://bit.ly/RVyrGn
http://preview.tinyurl...
http://bit.ly/XzX8r2
http://bit.ly/VduDQv