Thursday, November 25, 2010

Investing in africa !

4 de last decade or so an financial uplifting in Africa has brought millions out of poverty. democratic system spread farther and earlier than ever before. In December, the World Bank reported that sub-Saharan Africas 2008 economic growth was 5.4 %, equaling Europe and higher than Latin America [Africa lastly ceded to Latin America its place as the worlds slowest upward region]. Even now, many Africans imagine they will escape the global credit crisis relatively unscathed.

We are living in a confusing time in the history of commodity markets. Commodity prices are currently high. Yet producers in Africa and other parts of the developing world do not seem to be benefiting from these high price. ... The rich industrialis ed North has set the rules of the game, but instead of holding its producers accountable to those rules, it is distorting markets in their favour. Meanwhile, African producer whose government have acepted to play by the rules are losing out.- - Dede Amanor-Wilks, ActionAid International

But all of ths comes very late in de game,after much of Americas capacity to lead has been lost or squandered. The charge of Americans hypocrisy is everywhere in the air. And stil the United States and Western institutions manage to talk out of both sides of their mouths when it comes to transparent govrnance, human-rights protection, and fair trade in developing countrie.
Leader in Africa and China are wel aware of this hypocrisy, ofcourse, and use it as leverage against us. A year ago, China threatend to stop borrowing fund from the World Bank if the agency didnt heavily water down its anticorruption demands. The gambit worked flawlessly: A week later, the bank succumbed, and then tried to keep China's threat a secret. Last summer, the World Bank was preparing to publish a report that included the startling fact that 750,000 Chinese die prematurely each year from air pollution; China's government stepped in and insisted that the bank delete the figure, arguing that it could provoke social unrest. Again, the bank complied -- and again tried to keep China's demand from the public.
Capital flight out of Africa shows Western hypocrisy from a different angle. For every dollar the West lent Africa between 1970 and 1996, studies show that 80 cents flowed back out in the same year, often into foreign bank accounts in New York, London, and Zurich. A 2005 report by the (Tony) Blair Commission for Africa estimates that "stolen African assets equivalent to more than half of the continent's external debt are held in foreign bank accounts."

Finally
South Africa Country & Currency Research Report ►South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. South Africa's Fundamental Currency Analysis (short term investment): South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. South Africa's Value Investor Survey (short term investment): South Africa’s economic environment is moderate. South Africa's General Trading Partners: China, Japan and the US are South Africa’s top export partners, while the leading industry is materials. South Africa's Commodity Trading Partners: South Africa produces a significant amount of uranium, palladium, diamonds, coal, and platinum for use domestically and especially as an export. SWOT Analysis of South Africa: The leading South African weaknesses are their high unemployment rates, discriminatory issues and HIV Aids. The World Cup has the opportunity to propel growth, while the outbreak of disease may burden the health care system. South Africa's Currency Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.

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