Posts Tagged ‘Africa’

Bulls Start to Sniff Around African Economy

Friday, June 17th, 2011

south-african-money.jpeg
(photo credit: ヘザー heza)

A company named Helios just unveiled its second big fund composed of equity investments in African securities. The entirely private-equity fund is the largest ever created in Africa, and it seems to show that investors are becoming more and more interested in the emerging markets there.

The idea behind investing in “emerging markets” is kind of the same as the idea behind buying low and selling high. Sure, there’s always the risk that a low-priced stock means it’s a bad company and you’ll lose money on your investment. But if the stock does well, you make money. Lots of money. Same deal with emerging markets.

Since investors are basically amateur fortune-tellers, constantly trying to predict how companies and markets will perform in the future, this new investment in Africa means that someone, somewhere, thinks that things are about to go really well in those emerging markets.

Stay tuned…

The Economics of Piracy

Friday, March 4th, 2011

pirate-ship.jpg
(photo credit: paulhami)

Sometimes it’s true: the best way to deal with a bully is to ignore him. But everyone’s got to have a back-up plan, and it looks like the U.S. is getting fed up with the Somali pirate industry.

  • Back in 1801, when pirates still wore stockings, Thomas Jefferson decided to end America’s policy of paying off pirates for safe passage through the Mediterranean. The Tripoli-based scoundrels demanded bigger fees, but all they got was a war with the U.S.
  • Today may be another turning point; Somalian pirates have been a menace to shipping companies for years, but never before have they been so violent. The recent murder of four vacationing Americans raises the question of just how much the U.S. is willing to take to avoid a major conflict with an ugly enemy.
  • The U.S. is hesitant to take military action against the pirates because it’s just too big a job for an army that’s already stretched thin. The ocean is immense, piracy has roots throughout the “failed state” of Somalia, and there is no other viable economy to replace piracy with once it’s eliminated.

Facts & Figures

  • The average ransom for a captured ship is $5 million
  • The average amount of time hostages spend in captivity is 6 months
  • The “red zone” occupied by predatory Somalian ships is bigger than 1 million square miles of ocean

Best Quote

“Of course, I do not know what the U.S. will do in response to this latest atrocity. But Jefferson advocated an armed response and eventually war against Tripoli for far less provocation.” – Frank Lambert, professor at Purdue and an expert on the Barbary pirates

What do you think?

What company could come up with a profitable pirate-control product?

Get to it!

Check out the damage done as of the end of February 2011 in this New York Times infographic. The red numbers show number of vessels currently occupied by Somali pirates, and the white numbers show the number of civilians held hostage on each.

nytimes-pirates-graphic.jpg
(credit: Bill Marsh and Scott Garapolo/The New York Times)

Report On Congo Conflict Identifies Neighbors As Villians

Friday, October 1st, 2010

In one of the world’s most violent and tragic conflicts, it appears that no one’s hands are clean.

  • The UN just released a controversial report about the conflict in Congo from 1993 – 2003, and the picture it paints of certain foreign governments is causing political conflict.
  • The report accuses several African nations of committing serious crimes during the conflict. Rwanda in particular has expressed outrage that its military forces were accused of committing genocide.
  • In response, Rwanda and Uganda have both threatened to remove their peacekeeping forces from neighboring countries like Darfur and Somalia, where they are helping to maintain order.

Facts & Figures

The report accuses several nations of committing war crimes with their military forces:

  • Uganda – torturing civilians
  • Rwanda – hunting down refugees
  • Angola – raping women, looting hospitals
  • Zimbabwe – conducting deadly air raids
  • Chad – setting fire to homes

Best Quote

“The systematic and widespread attacks described in this report reveal a number of damning elements that, if proven before a competent court, could be classified as crimes of genocide.” – Excerpt from the 566-page report issued by the UN Office of the High Commissioner for Human Rights

Millionaire Moves To Ugandan Mud Hut

Thursday, April 8th, 2010

Successful British businessman Jon Pedley is leaving behind a life of luxury to move to Uganda and start a charity.

  • A self-made tycoon, Pedley experienced many setbacks in life – a criminal record, struggles with alcoholism, and a serious car crash that left him in a coma for 6 weeks.
  • Inspired by a friend who works in Uganda, Pedley is selling real estate and businesses to fund his new charity, Uganda Vision.
  • Uganda Vision connects troubled British youth to children in Uganda who are struggling with AIDS and poverty.

Facts and Figures

  • The 41 year old is selling his 16th-century farmhouse to move to a mud hut in Uganda.
  • Pedley is also selling Empowered Communications and Eme Tech to raise funds.
  • After fully recovering from his car accident, he gave up alcohol and found religion.

Best Quote

“I’ve never been more sure about anything in my life.” – Jon Pedley