US Strategic Metals gains approval for $100.8m loan program
USSM is planning to mine what it considers to be the largest cobalt reserve in North America.
A new survey by The Economist Intelligence Unit finds when institutional investors interested in frontier markets were asked to choose two regions out of five, two-thirds see Africa as holding the greatest opportunity.
Asia came in second with 44% and Latin American third with 29%.
Africa emerged from the financial crisis relatively unscathed growing 2.8% during 2009 and the IMF forecasts continent-wide GDP growth of just under 6% in 2012. That is faster than Asia (including Japan) and Australasia and double the expected global growth rate of 2.9%.
A 2010 McKinsey study forecast that Africa’s combined economy would grow by $1 trillion by 2020, taking it to a total of $2.6 trillion.
Despite the robust growth and rosy outlook institutional investment on the continent is in its infancy with one in three organizations with more than $10 billion under management having no exposure to the continent.
That is will change rapidly however and within four years says the EIU all expect to have funds flowing into Africa. On top of that institutions are switching to long term investments rather than hot money.
The study says while macroeconomic and political risks definitely still exist, investors’ concerns have shifted to Africa’s technical issues like illiquid capital markets; evidence of how far the continent have progressed in terms of overall stability.
Africa contains 54 countries and a total population of 1 billion and its biggest problem remains “to overcome deeply entrenched perceptions” says the EIU.
One such misconception is a fairly banal one: Africa is in reality much bigger than it appears on maps – the land mass can accommodate the US, China, India, Japan and Europe.
Click on the map below for a detailed geographical infographic. Click here to download the Economist Intelligence Unit and Invest AD report titled Into Africa.
Some avid cartographers have raised issues with this Kai Krause map from 2010, but concluded “however you look at it, his point is a good one.”
10 Comments
Franck Shum
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Franck Shum
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Pawel
This all makes sense to me!
Bruce F
Canada and Australia were European colonies and are now among the best places in the world to live. I believe the Africans can do the same if the wars are stopped, capitalism is embraced, resources are developed, and legal systems, education, and infrastructure are developed. In my opinion, the most important factor is adopting the Christian religion, partly because ethics and morals, and law and order, are so important to any civilization.
Farai Karonga
Time for the bigots to come out! Since the time of european colonisation and the short period thereafter Africa has not had much of a choice on who to do business with. Now is the time. The rest is ,schone Farberei’ and selective recollection by those that do not have the real interests of the africans at heart.
Robert S. Stewart
Africa is both a mine and a minefield. Tanzania, Ghana and Botswana remain the top of the list for safe places to put one’s investment dollars.. The rest are a high risk toss, unless you don’t mind investing in corrupt, undemocratic, autocratic, despotic, military regimes that couldn’t care a fig about their populations, let alone put in the necesary roads, railways, power or infrastructure to support the mining industry. You’d better pretend you are in the wilds of Arctic Canada or the northern end of provinces, before starting out. Only the capital cities have the population and governance to expand growth. The hinterlands of Africa remain largely empty. Wandering to the territory or warlords can be an expensive losing proposition. Just ask First Quantum and Freeport MacMoran in the DR Congo, RTZ and Vale in Guinea and Mozambique, Falconbridge in Zimbabwe and Uganda, and dozens of other well-meaning enterprises who tackled the Dark Continent. Caveat Emptor to all. +44 years of reviewing 100 prospects and securing a few that worked causes one to tackle it with eyes wide open. Robert S. Stewart at [email protected] http://www.interopag.com and http://www.africa-infrastructure-consortium.com.
Slvanjaarsveld
I was born in South Africa 53 years ago. I lieved my whole life here. I have kiddies whom two are working here, one in school, and twoo pre-schoolers.
If you want a true objective visual or virtual tour or advice from a normal working class citizen of South Africa you are most welcome to contact me. Fanie van Jaarsveld [email protected] or [email protected]
BKB
Nicely put!
Geological Consulting
Yes, whole continent is still dangerous enough, exxept RSA, Botswana and (more or less) Tanzania, but if nobody will try to work, China will do it – exploration, mining, road and civil construction etc. So mining companies have choice after their own estimation of risk – to do or not to do. To change the world or not.
Gues
And me!
Bbcpaving
South Africa has all the west has to offer regards to modern living, I own Condominium in a small place called Balltio, 20 mins north of Durban right on the beach you can watch dolphins & whales.
I also have building plot 973 sqm for sale with all services inc, and planning app R550,00 will buy your dream to build what you want to your spec.
you can contact me at …[email protected]