Summary (conclusion)

Africa is a goldmine that seems unknown by many potentials investors. There are many lack of understanding about the standard of this continent that get many extraordinary ressources but been less developped. This perhaps can be explain by the fact that, the ground received more than others from the nature. Many organisations are trying to find out a solution of those issues and reviving investment. But nothing can be done if first of all, the Africans don’t change their minds as it is stated in the scenarios about Nigeria in 2025.We need to change it by: getting good values, no tolerance against bad behavior, making constructive participations, having strong institution, accelerating diversification of economy, having radical reforms investment, implement transparency.

Introduction

I always ask myself the question to know why, Africa being the continent having almost received all from natural mother, is always behind the continent stripped and injured today in natural resource.

Poverty it is in Africa, the continent less industrialized is Africa. The worst is that it is also the continent where there are less investments however logically, with the assets which the nature of this continent offers, it should be a profusion of investment in this blessed continent of the gods.

This blog, each week will publish various articles that will make it possible, to analyze these facts according to the outlines and who knows, can be found resulting with these problems.

The outlines

Subject : Fertile ground

Topic : Africa’s damned continent but a potential investment

1. Introduction

2. Possible explanation

3. Four possibles future

4. Africa’s potential investment

5. Reviving investment in Africa

6. Conclusion ( summary)

Bibliography

Possible explanation

http://www.unctad.org/infocomm/francais/countries/pays.htm#carte

http://planetevivante.wordpress.com/2008/06/04/nombre-impressionnant-de-tornades-aux-etats-unis/

http://www.rfi.fr/actufr/articles/061/article_32913.asp

http://www.wwf.be/fr/juniors/doc/dossiers/dossier_forets-tropicales.htm

Four possibles futures

www.nigeria2025scenaros.com

http://www.alinstitute.org/project_Background/nigeriaOverview.aspx

http://www.trustafrica.org/

Africa’s potential investment

http://www.un.org/ecosocdev/geninfo/afrec/vol12no1/annan01.htm

Reviving investment in Africa

http://www.uneca.org/cfm/21/ecamin_i.htm

I found an explanation

At the beginning, after fracturing of the single continent in numerous ones, There were Asia Europe, America, Africa.

The Asia part got very poor ground. No oil, no minerals, besides of that there were so many natural disasters like earthquake, flooding.

Face to those issues, the asian needed first of all, to survive after, findind ways to overcome those states of fact. That’s why, they are so intelligent today despite the disfavour they got. Japan is number one in technology and China perhaps in the close future will replace USA in the head of the world.

Europeans with the bad weather needed to find way to avoid death and also to overcome naturals issues. Nowadays we can see where they are.

American also don’t have chance. They often undergo the damages of hurricane with as result many death. But that doesn’t avoid them to be on top of the whole world.

Africa is the single part after division of the big ground, blessed by god. Africans got all nobody can hope. Fertile ground, Profusion of ressources, The best weather in whole world which allows the renewal of that ressources. Forest,

rivers, many various animals,

and fruits.

Africans didn’t need to walk far or work hard to find something to eat. But look at us todays. It’s disapointing.

I think this is simple to explain. It’s like children. When you get a child and give him all he want without showing him how to get it by hiself, he will never learn how to get it. He’s gonna always stay and thinks that everythings will come from the sky. That’s why, i think Africa is ever behind those who learn to survive. May be Africans need to face to worst situation before change thier mind, i don’t know. I always ask myself the question. don’t think i’m pessimistic. No, i always try to fing a real explanation and effective solution.

You know if we want to change our seemingly bad fate, we have to change this mind we get today and, be fair and interdependant with our brothers. We must stop to care on our own interest, stop to want to do things in the black, i mean more transparency in actions we do. Stop corruption, stop to be lax towards rules, stop to hate our brothers from different ethnic group. We need to instill those values in our mind. We’re new generation, Africa of tomorrow will be what we want it to be.

Four possible Futures

reviving investment in Africa

Since 1980, extensive efforts have been directed at generating economic recovery in Africa. However, little attention has been given to the need to promote investment, although investment is essential in any country in order to: (a) increase employment; (b) reduce poverty; and (c) enhance economic growth. Furthermore, in order to feed and provide its growing population with productive jobs, African countries must raise the levels of domestic savings and investment. Unfortunately, policy makers do not tend to give much practical attention to such a link between investment and socio- economic progress. Policies currently being implemented or considered, no matter how genuine, cannot revive the continent’s ailing economies unless they accord investment the attention it deserves.

Although there are several explanations for the continent’s poor economic performance since 1980, the low levels of domestic investment is a major causal factor. Gross fixed capital formation has declined in Africa, from a total of $76.3 billion in 1980 to $58.9 billion in 1989.

A major cause of the poor state of investment is the very low level of foreign direct investment (FDI), which is the main form of foreign private capital inflows to Africa. These inflows averaged only $2 billion annually between 1981-1985 and $3 billion between 1986-1990, accounting for only 3 and 2 per cent, respectively, in the total inflow to developing countries. The average annual growth rate for the second half of the decade is only half that of the first (table 1).

African countries have failed to substitute the declining trend of FDI with increasing local investment because of a number of factors, such as the low level of domestic savings as shown in table 2. The African savings ratio in the 1980s was about 63 per cent that of the Asian average. For the empirical evidence on most of these, see Abebe Adera, The Financial Sector and Economic Development: Reflections on Africa, Finafrica – Cassa di Risparmio delle Provincie Lombarde (CARIPLO), Milan, 1994; and the Global Coalition for Africa, African Social and Economic Trends, December 1993, pp. 25-26. Aggregate savings are low because of low per capita incomes, low exports/GDP ratios, high and variable inflation rates, low interest rates, poor financial intermediation, relatively high aid flows, which are negatively correlated with domestic savings in some countries, and high birth rates which increase the proportion of the population under 15.
There is also a strong influence of negative net transfers on national savings. ECA, “Revitalization of investment for Africa’s development: Prospects in the 1990s and beyond”, background paper for the Ad hoc Expert Group Meeting, 29 November – 1 December 1993. Net transfers were not only negative throughout the 1980s, but their share in gross domestic savings rose from 14 per cent in 1980 to 25 per cent in 1990.

Indeed there are many efforts that are made in order to overcome this problem of investment in Africa. There are also many institutions established in Africa that focus their energies on reviving investments as we ca notice by this article above from http://www.uneca.org/cfm/21/ecamin_i.htm

Things that constitute a brake of those efforts are ways to behave.

Africa’s potential investment

The potential for highly profitable foreign investment in Africa is enormous, but many investors remain unaware of the past record and current opportunities. Although external investment in Africa has been increasing in recent years, it still lags far behind the flows to other developing regions, in part because of the generally negative image of the continent portrayed in the international media.

“Africa’s profitability is one of the best kept secrets in today’s world economy,” UN Secretary-General Kofi Annan declared a week later, on 12 July in Algeria, at the annual summit meeting of the Organization of African Unity. he noted that Africa also has experienced impressive economic growth rates in recent years, despite the effects of ongoing conflicts, the Asian crisis and depressed commodity prices. Nevertheless, he said, “most chief executives of multinational companies never look in detail at the prospect of any African country. They know Africa only from a few headlines or the odd minute of television news, which show a continent disfigured by conflict.”

While a “gross distortion” for Africa as a whole, negative image has a basis in reality in the wars and economic difficulties that continue to afflict some countries. African leaders therefore “have an obligation to help change that reality,” he affirmed, while at the same time highlighting the investment opportunities that currently exist.

This article above is only a support, to show that Africa is a kind of unknown goldmine. There are many ressources and oppurtunities here, but little investment. Some institutions that are awared on that, use only ressources of the continent without trying to replace or without trying to develop the ground. But is it means that nothings are done against this situation ? That’s what we are going to see in the next part dealing with : reviving investment in Africa.

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