Tuesday, August 7, 2007

Investing in Africa

George B.N. Ayittey is an author and a respected economist and intellectual from the West African nation of Ghana. Ayittey is known for his contraversial books such as Africa in Chaos and Africa Unchained. He doesn't criticize Africa like many people say, he just dared to criticize the corrupt, irresponsible and brutal governments. He criticized the likes of Mugabe, post-colonial leaders who made sure Africa is doing worse 4 decades after independance than at independance. Ayittey's vast economic knowledge enabled him to point out Africa's economical problems and many ways of solving them.
How to achieve economic growth or Development
According to Ayyitey, changing things in Africa requires economic growth or development.
If we want to grow we should encourage INVESTMENT.
The problem is noone invests in my Africa. Ok, some African countries are at war or at a post-war period and there is instablity in most regions but it is still a great place to invest. Investment in Africa is declining, people just don't like the disturbing images they see on tv.
In fact, people hate investing in Africa soo much, Africans don't invest in Africa. According to The Economist, an estimated 40% of the continents privately held wealth is stashed offshore.
If we want economic growth, we should encourage both foreign and domestic investments. We need several Osama Abdel Latif's to invest in Sudan (if you are a wealthy, Sudanese and you own something somewhere, for crying out loud, open a branch in the Sudan, invest there).
If you are a foreign invester, go on, invest in Africa. The rates of return on investment here are among the highest worldwide. In fact, since 1991, they are the highest in the world.
Many Egyptian businessmen are going to the Sudan nowadays to invest. Investing in the Sudan is getting popular now.
In Africa, you can invest in many areas including education,infrastructure,roads,health care etc... One of the most successful investments in Sudan are schools and hospitals.

I'm not an Economics major so I can't rant alot about this but all I know and all I'm sure of is that investing in Africa is a great opportunity.

8 comments:

Lord Trafalgar Rock Pigeon said...

Kizzie - you should be on a retainer from the government for your promotion.

Kizzie said...

lol, lord trafalgar, I'm not a big fan of african governments ( I thought I was too clear about that),I'm doing this for africa. so, considering investing in my africa?:D

msdalu said...

Kizzie for the President of Africa. :'P

Who's with me?

promoteyourblogforfree said...

nice blog

Kizzie said...

why not msdalu:)
We can all unite and form the united states of africa and i can be the president:)
It's not investment, the key to change in africa is female presidents!

Wolfie said...

Kizzie, people don't invest in Africa because the corruption is so bad. Economics cannot prosper in such a climate; rule of law must come first.

Graf von Straf Hindenburg said...

:)

pommygranate said...

Kizzie

I agree with you that investment is Africa's greatest need. But govt's must do more to encourage investment. they need to establish institutions free from corruption and bribery, to make the setting up of a company a painless process and to ensure property rights are upheld.

Then the money will start to flow.